I have a question about taxes paid when registering a new Cobra. I have some items that I purchased in California and paid sales tax. Other items were purchased out of state...no sales tax paid. Will I only be charged tax on the amout of the cost of the vehicle that I did NOT already pay taxes on?
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"There are 10 types of people out there....the ones that understand binary and the zeros that don't."
Joe A,
In another thread I explained the new law that is going in effect when it comes to registering the Specially constructed cars in the State of California.
You will be asked to pay taxes on all major components as well as the labor of assembly. Be it yours or someone else's labor.
I saw the book they were referring to at DMV. It has many many pictures of kits, pallet cars, rollers, and has far more reaching demands than they had in the past.
It won't be enough to walk up to the DMV window and tell them you have a $12,000 kit and you also bought an engine and a tranny for it.
They WILL ask to see receipts, they have a very good idea what a $12,000 kit looks like. If you show up with a car under it's own power all they want is their fair share of the taxes on the value of such a car. They could care less if you did the work or someone else did to turn it into a $45,000 Cobra. That is what they want to tax it for.
They may even check with your insurance company what you insured it for.
I personally don't have any problem with paying the taxes due on the car I am driving.
I do have a problem with the limitations of the 500 Special Construction numbers to be issued next year. 500 numbers won't be scratching the surface for all the hot rodders cobra builders needs. That is the shame if it all.
State of California looses a lot of revenue because come February they won't be able to issue any more permits, registrations for all the demand that is out there.
It will probably force some folks to come up with other creative ways to register their cars, and I am sure some or if not all are in violation of the DMV rules and regulations.
I wish we had someone capable of lobbying the folks in Sacramento and get them to understand, collective miles these special vehicles driven does not pollute the air anywhere near the revenue they could generate to clean it.
Thanks Turk. I don't have a problem paying the taxes either. I just don't want to be double taxed on certain items I already payed tax on. If this is the case I'll make sure to ty to get parts from out of state so that this does not happen.
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"There are 10 types of people out there....the ones that understand binary and the zeros that don't."
You MAY be asked to pay taxes on things you bought out of state. I would say items you bought within the state are already taxed, and may be exempt. Keep all your receipts..
Another question...I just received my invoice and Cerificate of Origin from ERA. The Invoice has prices of the options I am requesting, however I have not Paid In Full yet. Will this paperwork suffice for getting my SCV number in January?
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"There are 10 types of people out there....the ones that understand binary and the zeros that don't."
You can get your SB-100 number without even the car being in your possession. All they want is their taxes and fees. No one actually goes outside to look at your car, nor do you even have to have a car!!
If you want to walk in with nothing but a few pieces of paper, you will be able to get your number.
The problem is, as you receive the number, you will also get a temporary permit good for 30-60-90 days. Which means you must complete the car to drivable status to be able to take it to the CHP to get a vin number affixed to it.
Some have been lucky to get an extension on their permit. Don't bet on it.
The next stop is The Smog referee.
In my case I also had to make an additional stop at Brake and Light station. Then you go back to DMV for the finale.
Registration and Taxes
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