Do I have to pay tax in CA when I buy it ?
When I change the title, I have to pay MN tax again. Does that mean I have to pay twice ?
No, because you will get a credit in MN for anything you pay in CA.
In most states, vehicle taxes include sales tax as well as license and registration fees. Both of these items are normally paid by the purchaser in his home state only, and not in the state where the seller is located. But you should check to find out whether you need to pay anything to California. One place to start is the California website for their Department of Motor Vehicles, at
http://www.dmv.ca.gov/ There is some information for buyers and sellers at
http://www.dmv.ca.gov/faq/regfaq.htm#BM2520 but the buyer needs to report the purchase to his home state DMV, not to California.
The seller's current California title should show a transfer to you. You then use this to get a Minnesota title on it. More Minnesota title information at
http://www.dps.state.mn.us/dvs/MotorVehicle/dvstitle.html
Information about paying 6.5 percent Minnesota sales tax on the purchase of a motor vehicle is at
http://www.state.mn.us/ebranch/mdor/salestax/factshts/salestax/1250301.pdf In that document, you'll see that it states:
"Vehicles purchased in another state. Minnesota allows credit for state sales tax required to be paid to another state. However, if the other state's tax rate is lower, you owe the difference in rates to Minnesota."
So even if you DO need to pay any sales tax to California, you will then get credit for it in Minnesota.
Isn't the Internet a wonderful thing?
[This message has been edited by nsxtasy (edited 10 April 2001).]