Friday, February 4, 2011

License Plates and Taxes

Plates - New or Used

You should read the fine print for yourself, but it appears that if you buy an LD (used or new) in CA, you have to pay sales tax on it unless it is delivered by a 3rd party outside the borders of CA. Assuming you then license it in TX, you may not return to CA for 90 days. However, as others have noted, unless you were given a traffic citation in CA and records were checked because of that, it's unlikely anyone would question the 90 day rule when the vehicle has TX plates on it. On the other hand, if you were buying from a private party using a cash transaction and that party signed the title over to you, it would seem you could boogie home to TX and not pay any sales tax; however, when you register the LD in your home state you will probably have to pay sales tax.  Just depends on how the selling party wants to handle the deal. I guess creativity is the name of the game. Chris Horst

First, I do not know the laws in all 50 states. I do believe that with a Bill of Sale and the title signed over to you, you can drive any vehicle you purchase in any state to any other state with or without license plates. [Some states require that the seller remove the plates. I would anyway, as the plates are registered to someone else. Hang a sign "In Transit" or the like] I know some states require plates within x days of purchase to even cross through their boundaries, but x is usually more than enough time to cross the country.

As for insurance, my insurance company covers me in any vehicle I may purchase, all I need to do is give them a call and give them the VIN.  Don Malpas

I bought new from the factory. The only thing I had to do when I got back was get the MH inspected. LD gives you a one way 90 day transfer slip to get back to your state. It was amazing. I passed and was passed by numerous police of all types and went through a immigration check point east of El Paso and nobody gave a second look to a motor house that only had a little blue piece of paper stuck to the front windshield and no license plates. I don't think it is a big deal as long as you have your paperwork and proof of insurance. etc. Peter Thompson