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Old 02-14-2003, 06:58 PM
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Join Date: Mar 1999
Location: Big Bear, CA, ca
Cobra Make, Engine: Superformance
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Originally posted by Ron61 "...Thanks for answering my question about SAI and Kirkhams. I talked to my DMV and am considerign having a car built out of state but not by a regular manafacturer and they told me as long as I produce all the receipts for the total amount of the car I would have no problem so long as it wasn't built by a licensed car manafacturer like Ford, Chevy, & etc. The woman I talked to even toldme that I could just get a receipt for the whole rolling chassis instead of each part like rear end, shocks, etc. Then of course for the body, motor, tranny, paint, interior and so fortyh but they would just as soon not have a receipt for every nut and bolt as they already have enought paper work. She was very kind and helpful and that is why I was wondering how you could register a Shelby under SB-100..."
Here's an important point to remember as well: The amount of tax you have to pay, and the lic/reg is based on the receipts you produce. In California, the DMV is not supposed to charge you tax on labor - only on parts that you have not already paid tax on.

For example, let's say that you buy an engine in CA, pay tax on it, buy a tranny from a different state via the internet, don't pay tax on it, and have the entire thing assembled by a mechanic.

You have already paid tax on the engine. Make sure you show this on the receipt.

You have to pay tax on the transmission, as you have not paid tax on it yet.

You do no pay tax on the mechanic's labor.

And, to further confuse the issue, if you buy something from out of state, and actually physically purchase it in the other state - paying the necessary tax for that state, you have to pay the difference in the two sales taxes when you register the car. For example, if the tax in Nevada is 4%, and California tax is 8.75%, you will still owe 4.75% tax to California. Neat, huh?

My recommendation would be to do exactly what the FFR and Superformance guys have done: take down a copy of the magazine ad showing the price of the kit, take down receipts for the drivetrain, and use that to get the tax basis for your car. The benefits to doing it this way should be obvious - and not just from a simplification of the paperwork standpoint, either. The downside is that when dealing with your insurance company, they may want to know how the DMV came up with the sales tax amount.

In either case, it looks like I'm going to be helping someone re-register their bathtub Speedster here next week, so I'll get to see how the new and improved law works!

Your pal,
Meat.
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