1919 Series 51 Custom Sport Touring

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  • July 26, 2016 at 2:07 pm #412978
    Author nameAuthor names are only available to PAS members.

    To add to what George said about California “use” tax, it is possible to avoid paying it (temporarily) if the vehicle is not going to be registered for the road in California at the time of ownership transfer, and is put on a non-op status. It will become due when the vehicle is registered for the road, if and when that happens later. If the vehicle is going to be laid up for restoration, or will only be on display, you can postpone this outlay until the vehicle is driven/parked on (touches) a public road.

    Also, with voter approval, the add on sales/use taxes are added by the state counties, cities etc, usually for a set period of time. They change from year to year depending on how long they are approved for, so you can time registering for the road at a time that an add on sales/use tax has expired and you might save a percent or so.

    One important thing to remember in California, if you are not going to register a vehicle for the road either initially or through not renewing, it MUST be put on a Non Operation status. The seller of a vehicle I purchased let the registration lapse with no non op for 7 years and owed DMV $4500 in fines.

    I am not sure if auction companies collect the sales/use tax up front as dealers do. George, did the auction company charge you sales/use tax on the trailer?

    Dave

    July 26, 2016 at 2:37 pm #412979
    Author nameAuthor names are only available to PAS members.

    Dave, no, the auction house does not have a car dealer license so DMV will collect use tax when I transfer the trailer.

    Our late member Jack Passey, while heading the Association of California Car Clubs, was able to secure a provision exempting collector cars, defined as 25 or more model years old, from the requirement for registering such vehicles as “Non-Ops.” See the California Vehicle Code (CVC) in the 5000 series. Nevertheles, one must still execute a Certification of Non-Operation when one registers the car for the road for the first time, and this can be a hassle as DMV employees are usually unaware of this provision. Nor is their Operations Manual keyed to numbered sections of the CVC. I once was told by a DMV Field Office manager, “we don’t follow the CVC, we have our own rules.” I replied that the legislature enacts the CVC and the DMV is required to implement the CVC provisions in their own regulations. I then immediately telephoned the DMV Public Inquiries Unit (916-657-6560)and they counseled the manager…. No triumph over DMV is a minor victory! :-)

    I’ve found it’s best to inquire of the DMV Public Inquiries Unit *before* visiting a field office and to ask Public Inquiries for a chapter-and-verse reference to the field offices’ operations manual. The clerk can key in that reference at their work station and solve the problem quickly.

    I believe that each field office should have at least one employee who is familiar with issues such as Historical Vehicle or Horseless Carriage license plates and other collector-car issues, but DMV does not share my opinion.

    Dave, you can probably apply for a refund of the $4500 in fines. For everyone else, California does indeed hold the buyer responsible for the sins of previous owners.

    July 26, 2016 at 3:09 pm #412980
    Author nameAuthor names are only available to PAS members.

    George, thanks for the clarification. The car was a sports car, not yet 25 years old. The seller paid the fines, so it was his issue. The DMV rep I talked to said ALL cars. I had not heard about the 25 year exemption. Just proves what you said about doing your research before going to the office.

    I sold a number of old vehicles for the widow of a good friend. I quickly learned to research DMV online, print the applicable rules and then “educate” the rep at the counter. It usually ended up with a request to talk to a supervisor. The biggest hassle I ran into was with a CA registered vehicle that DMV had dropped from their system. As far as they are concerned, the vehicle no longer exists. A real nightmare.

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