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Posts Tagged ‘Washington State’

Ebay Car Purchase: Paying out of state sales tax!?

November 4th, 2012 4 comments

I just bought a car on ebay for $15,000. The car is located in California and I live in Washington State.

The dealer wants me to pay the sales tax of California which is 9%?

I bought a car in California about a year ago, and all I did was fly down there, drive it back up to Washington, and payed all the taxes, and fees here in Washington.

Is there some type of new law that says I have to pay the sales tax in California? How would here be proof that I already paid the taxes and would have to pay taxes again back in Washington.

This is some bogus lie that this dealer is saying to try to rip me off?
Edit Typo: How would there be proof……

If you are picking up the car in California, the dealer is required to collect CA sales tax, even if you are registering it out of the state. The only way to avoid it is to have the dealer deliver the car outside the state. When you register the car in WA, you can probably get a credit for tax paid to another state.(that’s the way it is in CA)

Sales tax on Ebay sale where commercial seller doesn’t have nexus?

July 17th, 2012 3 comments

I recently agreed to purchase a piece of Machinery from someone in California. The company I’m purchasing from does not have nexus in Washington state where I live.

They asked if I would have the machine shipped or be picking it up myself. When I offered to drive down and pick it up they sent me an invoice requesting I pay 9.25% sales tax.

This does not sound legal to me.
I understand the Walmart analogy. Does that hold true if I pay for something in advance? In essence, acting as my own shipping company by going down to pick it up.

It doesn’t matter if the company has nexus in Washington. You are paying California sales tax because possession and title to the product passed in California. It doesn’t matter when you paid for it and it doesn’t matter if you are removing it from the state.
If the company had shipped the product, title and possession would pass when you receive the product in Washington, which would make it exempt from CA tax.
Either way, you would still be liable for Washington use tax.