Holy Califonia Tax Batman!!!!!!!!!!!

So im trying to refinace my truck. I owe 22k, bank values my whip at 19.5k. I have the diffrence just chillin in the bank ready to go. Then today the bank tells me pending aproval, I will have to pay $1700.00 in state tax on top of the diffrence!!! Not intrest. Not towards the truck. Tax to the state. Didn't I already pay tax on the vehicle during the first perchace? I might wait and refinace in Oregon. They value the truck less=more diffrence to pay, but no state tax. Anyone have any insight?

 

Ouch!

 

You live in Sacramento. Go knock on Arnold's door and settle it.

 

Are you refinancing with the same bank?

 

Shouldn't matter since there's no sale of the vehicle, therefore you DO NOT have to pay the 10% Use Tax (or is it now higher than 10%?). Now if you were leasing it, then yes you have to pay the 10% use tax because you're now buying it and never paid that tax.

Been there, done that.

 

WTF- That makes little to no sense...

 

You are not changing ownership you are just refinancing. I do not think your bank knows what they are doing.

 

Are you going from a lease to a purchase? Maybe you don't pay sales tax when you lease. IDK

 

some one at that bank does not know what the f@#k is going on. ive never heard of a state tax for a refy. go to another bank. try AAA. good luck.

 

I bought the truck used, but the loan still went threw Toyota Financial. I am now trying to refinace it threw USbank because I use them for all my normal banking. No leases or anything. Bought truck, loan is threw Toyota. been with them two years. High intrest, 13.5% (I know, don't ask.) Now Im just trying to do a normal refinace threw Usbank, 4.9% Never done this before. You guys are saying they are F ing with me? How so? Give me more.

 

Yes, this is one situation where you would have to pay tax because you are actually purchasing the truck. On a lease, you pay the tax with each lease payment you make for that portion of the lease.

 

Assuming you mean SALES tax?
Only need to pay that when you PURCHASE a vehicle. You already did that and paid tax then. ReFi is only a bank trans action and DMV gets no fee other than to change the new loan holder on the title and registration.

 

Yes. she said state sales tax. I don't like this, starting to sound shady. No wonder the accountant was so hot. So they can pull one over on me. I have a weakness for the ladies in business suits.

 

Which state is it currently registered in? If it was purchased and registered in another state, California then tries to make you pay California sales tax when you transfer the registration to California.

 

Well, thats a confusing story. Originally I bought and registered the vehicle in Califonia, but due to my military and out of state residence I paid Idaho registration prices. (I am stationed in Cali, but keep my state of residence as Idaho.) Then I tried to register the truck in Idaho to get Idaho plates. I want Idaho plates when I move home so I don't get keyed. lol. Idahoan's hate Califonian's. Anyways Toyota Financial "thinks" the truck is registered in Idaho, but I was not able to finish the process due to my deployment getting moved up. So four months later when I got home I was going to finish the process. Tags had expired, but was going to sneak up to Idaho and do it there as well as new plates. (I know, I know) Well, I didn't even get off base the day I got back before Security Forces pulled me over cause of bad tags so I had to re register In California again and still am. Did any of that make sence? Typing sucks on a PS3 controller.

 

Perchaced in Cali. Allways been registered in Cali. Trying to refinance in Cali.

 

go back to your bank find the hot girl, flop your man on the table and say suck it. I have never heard of this either.

 

Since it's financed through Toyota Financial is it safe to assume you bought used from a dealer? If it's a private party sale you'd owe "use tax" (sales tax by a different name) but that'd get collected through the DMV when you register.

Seems to me that it's one of two options:

A) Confused banker who's only used to making car loans for the "original" purchase and may not have handled a re-fi from another bank. You could try talking to a manager at the bank about it.

B) Since the lienholder in the financing is changing in the re-fi (and they are named on the title until the loan is paid off and the transfer it to sole ownership by the borrower/buyer), the law may actually try to count it as a "sale" transaction which would generate a "use tax" liability. If this is the case you might want to check with a CPA or tax attorney to see if there's any way around it.

With the rate at 13.5%, you might try asking about just taking a "signature" loan from USB to pay off the Toyota loan without putting the truck up as colateral. It'll be a higher rate than 4.9% but it may still come out a big improvement over 13.5%, there might even be some way to re-fi that into a loan against the truck after a couple months after you get the title free and clear from Toyota but you'd need to discuss that with the bank to see if it's possible (and to make sure it's legal).

 

Did you pay CA sales tax when you bought the truck? If you were registering out of state, they may not have colleced it at that point, but they'll hit you with it if you then register the car in CA within a year of the purchase date. Shouldn't be an issue if it was your ID tags that expired while on deployment but it could have hit you if it was the temp tags from the sale, although that should have been charged by DMV when you registered. May be possible that something screwed up and CA put some sort of tax lien on the title which the refi bank would probably need to clar up before proceeding.

I know some of the laws with this are different for active duty military, is there any sort of adviser/counsel office on base that might be able to help you out?

 

No, pretty sure I paid Cali state sales tax at purchase from dealer. The non resident Idaho military thing is only for registration fee's. I have Cali plates, but only paid Idaho prices. $86 bucks rather than $250 - $300. I have registered the vehicle in Cali twice now. Once after temp tags expired and again Nov 09. Had they been waiting to get me with a tax charge at registration, they have had two chances so far. I just called up my old man and he thinks this is screwy too. Before i sign shit im going to another bank or credit union and asking them. Also, if I paid the state sales tax already, It will be on my original contract right?