Sales Tax on RV Purchase from B.C. Canada

nckzck · July 10, 2015

Hello all. I am looking at purchasing a motor home that is currently in Victoria, B.C., Canada. I live in California, but can register it either in Nevada or Texas. My question is...I want to minimize the state sales tax on the purchase. If I bring it directly to California, it appears the sales tax and registration would be approximately $11,400. Looking for suggestions on minimizing the tax / fees. I have heard that if I have transported to Nevada and take delivery of it there, I can avoid state sales tax altogether?

Any input is greatly appreciated!

Perry

chirakawa · July 10, 2015

Sales tax on vehicle in Texas is 6.25%

Kirk W · July 10, 2015

Welcome to the Escapee's forums. It is always great to have new members join us here and we will do our best to help and support you in your RV adventure.

I live in California, but can register it either in Nevada or Texas. ~ ~ ~ ~ ~

My question is...I want to minimize the state sales tax on the purchase. ~ ~ ~ ~ ~ ~

First a question for you. If you live in CA, how is it that you could register the RV in either NV or TX? The second part is, does it matter to you if the way that you do this is legal, or just something that you can get away with? I would suspect that there is an import fee involved and suggest that you check with the border folks to see about that. If you do register & license this motorhome in TX or NV you need to realize that CA has been very aggressive in pursuit and prosecution of people who register boats, RVs, and automobiles in another state in order to avoid the CA taxes. The only way that I know of to register your RV in some other state and avoid this effort is to store the RV in whatever state you register it in and not in CA at your home. CA even has a toll free number that they advertise for people to use to report tax cheaters and I think that they even sometimes pay a reward to the snitch.

Nevada has a state sales tax of 6.86% and some counties and cities also add an additional tax. As I read the laws there, there isn't a legal way around that tax and there are additional fees that are associated with the registering and titling of an RV.

Texas also has a 6.25% sales tax on RVs registered in the state but other fees are based upon weight and are quite reasonable.

nckzck · July 11, 2015

Kirk,

Thanks for the welcome. It is appreciated. Yes....I want to do things legally, but as you know, there are often methods that allow someone that does the research to not expose themselves to certain state regulations if there is a Federal mandate or an agreement between states allowing such. I found this on another RV website, and have seen the same information on other sites while doing a Google search:

"Sales tax

Sales tax is payable on the purchase of an RV in many, but not all, states. Retail prices, MRSP, sticker prices, etc typically do not include sales tax, so you should figure that as an additional cost when you budget for your purchase. In states that charge sales tax, it will be significantly lower than Brits or Europeans are used to paying as VAT. The tax varies by state and often by county, but the approximate tax rate for Florida is 6% and California is 8.25%.

Sales tax can be (legally) avoided if you either purchase an RV in a non-tax state or arrange for delivery in a non-tax state. If, for example, you purchase an RV in California, you could take delivery in Nevada and pay no sales tax. If you request this option, the dealer will arrange for a delivery driver to drive your coach across state lines, hand over the coach, and have you sign the paperwork required by California. There will usually be a fee for this service, which essentially pays for the driver's time."

Reference: http://www.rvforum.net/joomla/index.php?option=com_content&view=article&id=354:guide-for-buying-an-rv-in-the-usa&catid=25:visitors-to-the-usa

I just want to confirm the legitimacy of the information, and confirm it applies to bringing an RV in from Canada, as it would from another state.

Thanks,

Perry

scouserl41 · July 11, 2015

Does the RV comply with US smog requirements?

I know several motorcyclists who bought BMW motorcycles in Canada and couldn't register them in the US because they weren't stamped as EPA compliant.

Don't know if RV's are like that but if it were me I'd find out.

If you are a CA resident then unless you set up a Montana LLC there is no legal way to register it out of state and keep it in CA. There are lots of people who do just that but it doesn't make it legal.

LindaH · July 11, 2015

Sales tax can be (legally) avoided if you either purchase an RV in a non-tax state or arrange for delivery in a non-tax state. If, for example, you purchase an RV in California, you could take delivery in Nevada and pay no sales tax.

This is information for people who don't live in California, NOT for California residents! (Note that it was written for people visiting the U.S.)

There used to be a way for California residents to avoid paying California sales tax by keeping the vehicle out of California for some specified period of time...it used to be 90 days and then was changed to 12 months. I *think* it went back to 90 days, but you will need to check with the State of California to see what the time limit currently is and what you need to do to comply with the law.