<VV> Sales Tax - California style

[Sethracer at aol.com]

In a message dated 6/7/2006 6:44:08 PM Pacific Standard Time,  
hyarnell1 at earthlink.net writes:

In  Maryland, we don't have 'personal property tax' (thank God), but ANY time 
 
a vehicle is re-titled, the state taxes it at it's current value, NOT  
necessarily the selling price. If you tell them your '05 corvette cost you  
$500, you better have a notorized bill of sale, otherwise it's book value  
that they'll  tax you on.
Now, if the car is over 10 years old,  there's no book value, but a minimum 
value is assigned (I think it's  $600), so you pay $30 tax (5% sales tax).





California has an exemption for "garage" sales. It would generally apply to  
an individual at the the outdoor flea market at a convention or Palm Springs 
fan  belt toss. It reads:
 
 OCCASIONAL SALES — A sale by (and purchase from) a person who is not  
engaged in a business
requiring a seller’s permit is exempt from sales and  use taxes. These types 
of sales are “occasional”
sales (some states have  similar exemptions for “casual” sales). Generally, 
a person who makes  three
or more sales for substantial amounts in any period of 12 months is  required 
to hold a seller’s permit.
A person who makes a substantial number  of sales for relatively small 
amounts is also required to hold
a seller’s  permit. (The 12 month test period can be the 12 months before the 
sale in  question, the 12
months after the sale in question, or any other 12 month  period in which the 
sale occurs.) A person
holding two garage sales with no  other sales in any 12 month period in which 
the garage sales are held
are  regarded as making exempt occasional sales. 
 
This is why I (as Silicone Wire Systems) do not sell Ignition wires at  the 
Fan Belt toss, just old Car parts, usually surplus Corvair stuff and race  
stuff. If I sell Ignition wires, they are taxable. Since I do the "Flea Market"  
bit less than 3 times a year, I and my customers, are exempt from sales tax on  
those items. I do, indeed have a sales tax permit and collect California 
sales  tax on sales within California. Also, California does not have a sales tax 
on  used cars, except for those sold by dealers. BUT - they imposed a "use" 
tax on  private party used car sales - (I remember the many years ago when the 
car  dealers got that one through the legislature) For most cars, the DMV, as 
in  Harry's state, looks up the value on some chart or you have to prove what  
you paid. For most older cars, they just accept the statement of the buyer 
when  they go into the office. Buyers are probably not always truthful when 
stating  their paid amount. It is likely the second negotiation that takes place 
between  private parties on any car sale in California. I compare it to the old 
55 MPH  speed limit, helping to make "criminals" of a lot of people. - Seth  
Emerson