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      08-22-2011, 12:50 PM   #1
seong1386
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bmw military sales program use tax CA or NV

I just purchased 2012 135I during my deployment and shipped over to Las Vegas NV. I am active duty military stationed Nellis AFB and california resident. Its a brand new vehicle. I know active duty military has a government tax waiver upon a vehicle registeration in Nevada DMV but is there anyway I can avoid use tax from these two options I have? registering in california or nevada. anybody had bmw military sales program experiences? please share with me.
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      09-10-2011, 08:13 PM   #2
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I had to pay sales tax for (Fort Drum) New York when I registered my car there. I ordered my car just before returning from my deployment.
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      09-10-2011, 10:37 PM   #3
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I bought my car while stationed overseas in early 2010. A year and a half later, I brought the car to Texas (current duty station and home of record). When I titled it, I got stuck with a use tax based on the original purchase price of the vehicle - it ended up being almost $2000! And they wouldn't take a credit card - just cash or check.

Luckily the guy couldn't read the original invoice (it's not in English) because he ended up computing the taxes based on the base price, not the price with options - saved me two or three hundred bucks at least.

Anyway, I don't know the laws in Nevada - I think there's another guy on here who went to NV and didn't pay taxes? I'm pretty sure it's unavoidable for California, because I looked into a little bit because I thought I might be PCSing there instead of TX.
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      09-11-2011, 07:02 AM   #4
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Quote:
Originally Posted by Bimmer-Bob View Post
I bought my car while stationed overseas in early 2010. A year and a half later, I brought the car to Texas (current duty station and home of record). When I titled it, I got stuck with a use tax based on the original purchase price of the vehicle - it ended up being almost $2000! And they wouldn't take a credit card - just cash or check.

Luckily the guy couldn't read the original invoice (it's not in English) because he ended up computing the taxes based on the base price, not the price with options - saved me two or three hundred bucks at least.

Anyway, I don't know the laws in Nevada - I think there's another guy on here who went to NV and didn't pay taxes? I'm pretty sure it's unavoidable for California, because I looked into a little bit because I thought I might be PCSing there instead of TX.
Im PCS'ing to Cali unfortunately and I am considered a resident of that state. Born and raised. I just paid off my car and have been in Germany for 3 years. Will i still have to pay this use fee when i register my car? I think its such crap. If its 2k ima shit my pants.
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      09-11-2011, 09:24 AM   #5
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^ It looks like you will have to pay a use tax for CA, but I don't know how much. I think it varies by county. I would guess it is probably pegged to local sales tax.
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      09-11-2011, 10:12 AM   #6
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Just found a california tax calculator and after doing that it said 0 for use tax. I hope thats right and fair. It makes sense because ive used / bought the car in Germany and driving it there since 2008. If i had intent of using the car in cali after i bought it then they could charge me that use/sales tax.. But since ive used the car in Germany for 3 years i think that may be considered non-intent to use in california. Also(this confuses me since you paid use tax in Texas), i read that you should not be charged use/sales tax in cali if your car was purchased in a different state as long as you purchased it more than 365 days before time of registration. But Bimmerbob you registered in Texas? maybe there usage/sales tax is chargable to you if the car was purchased and brought into texas withing 1.5 -2 years?
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      09-11-2011, 11:55 AM   #7
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Hopefully in CA they will give you a break because you've had the car so long already. In TX they didn't care - they said since it was the first time the vehicles was titled that I had to pay the tax no matter what. The only thing that would have offset it would have been if I had paid tax on it somewhere else, but of course I hadn't.
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      09-12-2011, 07:43 PM   #8
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My best sugestion for the military guys is to take both of your registration options (home of record or where you are stationed), research carefully and map out what you would pay over a year for ins., initial registration, taxes, re-registraion etc. combined. Then obviously go with the cheapest option. There are some other factors to consider other than just the taxes. Every state and sometimes even the county has different rules and tax rates, add on top of that discounts for resident/non-resident military, time the vehicle spent overseas etc. and it gets complicated. Since the OP purchased it new and it will be delivered with 0 miles its prob going to be considered new by NV and you will have to pay those taxes. All my paperwork is packed away right now or I'd be more specific but here is my example. I was a NV resident stationed in FL and purchased my 135 new through Military Sales with stateside delivery. After adding everything up I saved about $700 (for two vehicles) registering in Fl. Most of this savings came from an initial registration waiver for Fl military residents, taxes were about the same. One added benefit thats hard to put a price on is being able to go in locally and ask questions and get answers. I hope my long winded response was helpfull.

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      02-22-2014, 03:00 PM   #9
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California vs. Texas Military

Bringing this back the front.

California use tax is determined by intent

See here:
https://www.dmv.ca.gov/pubs/brochure...r.htm#military

So I have lived in Germany for 3.5 years. Never knew I would be moving to Cali next. Both cars purchased here well over 1.5 years ago. All licensing and registration fees were paid to USAEUR.

You can apply for an exemption to the use tax by following this guide
http://www.boe.ca.gov/pdf/pub52.pdf

And I QUOTE
Military personnel:
"If the vehicle is delivered to or received at a location outside California, sales tax or use tax may not apply if the service member moved to California because of an official transfer to the state and the contract to purchase the vehicle is made before the service member receives the official transfer orders to California."

Anyone else try this option?

Texas is pretty clear cut. Any vehicle that was NOT previously titled is considered taxable (6.25%). Tax is determined by the greater value of presumptive value or amount at time of sale. Usually they use presumptive value unless the vehicle is new.
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      02-23-2014, 09:08 PM   #10
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I'm a Texas resident stationed in Cali.
When I PCS'd from Germany, I didn't pay taxes putting Cali plates on. The DMV said that if the car has high mileage(~10K) or if you've owned it for a year or more, then the vehicle is exempt. I barely met the year requirement...and I used the date that I purchase ordered the car not the date I picked up the car.
If I move to Texas and decide to register there, I will have to show proof that I've paid taxes on the vehicle and pay Texas the difference. Since I've never paid taxes on the vehicle, I'll have to pay on it's residual value or original purchase price...I forget which. This leaves me with the thought of possibly selling the car here in Cali...
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      02-24-2014, 09:12 PM   #11
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When I bought my Audi and had it shipped to the states, registering in AZ they TRIED to get me to pay AZ sales tax of over $7,000.

I have a loop hole: I am not a local AZ resident, but a NY resident, so therefore I am exempt of paying the local sales tax. Walked out of the MVD with a $170~ registration fee last year.

My best advice is to register in a state that is not your home of record... GOOD LUCK.
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      02-24-2014, 09:59 PM   #12
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Quote:
Originally Posted by EURO-SCHNELL View Post
When I bought my Audi and had it shipped to the states, registering in AZ they TRIED to get me to pay AZ sales tax of over $7,000.

I have a loop hole: I am not a local AZ resident, but a NY resident, so therefore I am exempt of paying the local sales tax. Walked out of the MVD with a $170~ registration fee last year.

My best advice is to register in a state that is not your home of record... GOOD LUCK.
It depends on the state. In TX they will still charge you a "use tax" since your using their roads.
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      02-24-2014, 10:08 PM   #13
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Shitty Shitty...

I lucked out, as I was about to shit a brick when they initially told me the tax. Then they said that key phrase, after I told them the military sales program was designed so that we didnt have to pay sales tax lol.... "Every AZ resident has to pay sales tax!" Bingo!
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      01-04-2015, 01:36 AM   #14
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Quote:
Originally Posted by seong1386 View Post
I just purchased 2012 135I during my deployment and shipped over to Las Vegas NV. I am active duty military stationed Nellis AFB and california resident. Its a brand new vehicle. I know active duty military has a government tax waiver upon a vehicle registeration in Nevada DMV but is there anyway I can avoid use tax from these two options I have? registering in california or nevada. anybody had bmw military sales program experiences? please share with me.
I just moved to California from Germany. I am NOT a CA resident. I registered my 2012 328i for $105.00
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      01-04-2015, 01:37 AM   #15
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Quote:
Originally Posted by Bimmer-Bob View Post
It depends on the state. In TX they will still charge you a "use tax" since your using their roads.
That's why registering in California vs. Texas saved me thousands of dollars...no joke! Who would have thought tax crazy CA would be less?
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      01-04-2015, 04:25 AM   #16
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Originally Posted by smellthebeans View Post
That's why registering in California vs. Texas saved me thousands of dollars...no joke! Who would have thought tax crazy CA would be less?
Yeah, I was unfortunate as my first duty station from overseas was Texas, and I'm a Texas resident per my service record. So I really had no choice but to register there. But it definitely pays to shop around. A lot of states will end up charging you tax, but I guess some won't. It's kind of a crap shoot.
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      01-04-2015, 11:30 AM   #17
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Quote:
Originally Posted by Bimmer-Bob View Post
Yeah, I was unfortunate as my first duty station from overseas was Texas, and I'm a Texas resident per my service record. So I really had no choice but to register there. But it definitely pays to shop around. A lot of states will end up charging you tax, but I guess some won't. It's kind of a crap shoot.

In Texas its a standard presumptive value. If the car is not previously titled or purchased out of state then imported Texas Residents are required to pay the difference in the stated standard presumptive value.

The good news is that SPV is not so bad some where between 5 &6 percent of the cars value. Much less than the 9% sales tax here in CA. Also in Texas on trade in you get the entire value of your trade reduced from the amount subject to SPV.

To the Original Poster....best advice is to shop around.
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      01-04-2015, 12:41 PM   #18
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Quote:
Originally Posted by smellthebeans View Post
In Texas its a standard presumptive value. If the car is not previously titled or purchased out of state then imported Texas Residents are required to pay the difference in the stated standard presumptive value.

The good news is that SPV is not so bad some where between 5 &6 percent of the cars value. Much less than the 9% sales tax here in CA. Also in Texas on trade in you get the entire value of your trade reduced from the amount subject to SPV.

To the Original Poster....best advice is to shop around.
I forget what the exact rules are with SPV, but they don't always use it. In my case, they looked at my invoice and based the use tax on the vehicle's actual purchase price. Fortunately for me, since I acquired my 1er through Military Sales while stationed in Spain, the invoice was in Spanish and the clerk couldn't read it. So he calculated the use tax on the vehicle's base price, without options or destination fee added. Saved me a few hundred bucks.

A few years later I bought a 4Runner while stationed in CA. The dealer included CA registration in the sale (albeit at a reduced rate since I was an out-of-state resident in the military - I had to sign some sort of waiver, don't remember exact details). Anyway, when it was time to renew, I decided to switch to TX registration. I sent in my invoice and they again calculated the use tax based on the purchase price, but then they gave me credit for any sales tax already paid on the vehicle. Obviously CA sales tax > TX sales tax, so I ended up only paying the registration fee.

I think SPV might be used for cars that are beyond a certain age or something - in any case, two times out of two, it hasn't applied to me.
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