[CA only]Sales tax and VLF expected to drop 1.5% on 7/1/11

[greenleaf]

California's sales tax to revert to 2008 levels on 7/1/2011

In case you missed it, CA's sales tax is slated to revert back to 2008 levels (1% less) on 7/1/2011. It looks very unlikely that the higher tax will be extended in time for 7/1.

So if somehow your delivery gets pushed a few days into July, you get to save about $340 in sales tax. Of course this is nothing if you loses out on the CA EV rebate ...

EDIT: VLF will also drop from 1.15% to 0.65%. So you will pay 1.5% less in taxes if the vehicle is purchased in July. This saves about $500 in taxes.

 

[LEAFer]

WHOA ! Interesting !!!

So ... what happens on monthly LEASE payments ? Does the tax portion automatically get reduced and the principal portion increased ? I doubt the LESSOR will pay any attention to this ... it might be up to the LESSEE to "nag" them about it !!

( THANKS FOR THAT HEADS-UP ! )

 

[Coffee_Slurry]

That's a really good question LEAFer..
If the sales tax is on the lease payment (at the time of payment), then I'd expect it to drop. Hm!

 

[greenleaf]

From the way it goes, the window of "2008-level" sales tax might be small. I think it will get added back later in Nov.

 

[xtremeflyer]

Yes, your lease payments will go down the difference in the sales tax. When I leased before, the payments went up the difference in sales tax when it increased.

 

[LEAFer]

Yes, your lease payments will go down the difference in the sales tax. When I leased before, the payments went up the difference in sales tax when it increased.

Does the LESSOR handle that automatically in the billings and/or automatic withdrawal payments ?

 

[xtremeflyer]

Yup.. they should.. Check your July bill when you get it.. if its not right, call them up and give them a friendly reminder..

 

[gmuzhik]

As near as I can determine, the CA Vehicle License Fee (VLF) drops also to 0.65% from 1.15%. The total drop is 1.5% as of July 1. I calculate that to be a savings of $525. So if we miss the full $5K CA rebate and wait to July 1 to buy our Leaf, we will still get the reduced $2500 rebate and add this $525 savings for a net saving of $3025 after July 1. The 1.5% drop assumes the state legislature does not renew the higher rates.

 

[VikeKen]

My dealer has told me that the car is at the dealership.
It seems that the CA rebate for 5k at least, is a lost cause.
Should I delay my purchase for 10 days to receive the benefits of lower tax rate and fees?
And anyone have any advice of how to accomplish this? Do you think dealers would be cool with this?

 

[johnr]

My dealer has told me that the car is at the dealership.
It seems that the CA rebate for 5k at least, is a lost cause.
Should I delay my purchase for 10 days to receive the benefits of lower tax rate and fees?
And anyone have any advice of how to accomplish this? Do you think dealers would be cool with this?

Of course, you can still reserve the (now $2500) rebate when you do pick up your car, and when funding returns they'll mail you a check. Yes, if I was you I would delay my purchase for 10 days. Just call the dealer and let you know you want to come pick up your car on July 1st. Most dealers would be happy to hold your car for a few more days, as they can show it off to people in the mean time

 

[planet4ever]

If I was in your shoes I would go ahead and get the car now. We're talking less than $400, California desperately needs the money, and I can afford it more than a lot of people who are going to get shafted when Sacramento finally comes up with a budget they can approve. Your financial situation may vary, of course.

Ray

 

[gmuzhik]

[quote/]Of course, you can still reserve the (now $2500) rebate when you do pick up your car, and when funding returns they'll mail you a check. Yes, if I was you I would delay my purchase for 10 days. Just call the dealer and let you know you want to come pick up your car on July 1st. Most dealers would be happy to hold your car for a few more days, as they can show it off to people in the mean time [/quote]

Mine came in on Monday and the dealer was totally unwilling to hold it. They said that it costs them per day of hold but didn't give me an amount. I am not happy! Actually, you save 1.5% because the vehicle license fee drops 0.5% in addition to the sales tax.

Did your dealer allow you to pick it up on July 1?

 

[greenleaf]

Tell them that you are out on a summer vacation.

 

[gmuzhik]

Yeah, I thought of that (telling them I'm out of town) but I blew it! Already went and got it. Bummed that I missed the full CVRP rebate by three days and paid the full tax and fees, not to mention I paid full MSRP!!

 

[mxp]

Could someone pls help explain it a little better? And, how is this sales tax change implemented say; at the merchant's POS terminal?

I looked here but there is no information:
http://www.boe.ca.gov/sutax/sutprograms.htm (there is nothing on this website indicating the reduced sales tax)

Also, I just call my dealer and they have no idea of this.

Can someone pls confirm my math:

My LEAF price should be on sales tax of 7.75% (assuming 1% down from 8.75% - Alameda county)
The CA Registration should be calculated by the dealer using a sales tax rate of 0.65% (down from 1.15% - read from a posting up)

Is this how it works?

Thanks in advance.

 

[gmuzhik]

Your math is good. I did some extensive research and the total reduction is 1.5% IFF (if and only if) the legislature fails to extend it and does not substitute other taxes and fees in its place. Good luck if you can get your dealer to hold it. Tell them you had an emergency trip!

 

[greenleaf]

Could someone pls help explain it a little better? And, how is this sales tax change implemented say; at the merchant's POS terminal?

I looked here but there is no information:
http://www.boe.ca.gov/sutax/sutprograms.htm (there is nothing on this website indicating the reduced sales tax)

Also, I just call my dealer and they have no idea of this.

Can someone pls confirm my math:

My LEAF price should be on sales tax of 7.75% (assuming 1% down from 8.75% - Alameda county)
The CA Registration should be calculated by the dealer using a sales tax rate of 0.65% (down from 1.15% - read from a posting up)

Is this how it works?

Thanks in advance.

I think the dealer doc fee is also taxable.

 

[juniorboy90210]

[quote/]Of course, you can still reserve the (now $2500) rebate when you do pick up your car, and when funding returns they'll mail you a check. Yes, if I was you I would delay my purchase for 10 days. Just call the dealer and let you know you want to come pick up your car on July 1st. Most dealers would be happy to hold your car for a few more days, as they can show it off to people in the mean time

Mine came in on Monday and the dealer was totally unwilling to hold it. They said that it costs them per day of hold but didn't give me an amount. I am not happy! Actually, you save 1.5% because the vehicle license fee drops 0.5% in addition to the sales tax.

Did your dealer allow you to pick it up on July 1?[/quote]

My dealer did the same thing. Mine came in this Tuesday and I told him that I wanted to hold off on picking up until July 1 and he refused. He said that if I did that, they would sell the car to someone else. He pretty much gave me the weekend to pick up or I would lose it.

 

[greenleaf]

Can a dealer sell a reserved car to another person if it is not picked up in one week? Would really like to hear what Nissan Corporate has to say about this.

 

[BlueSL]

In the dark days before my car was delivered, I was very concerned the car would not arrive until after my extended summervacation began. The dealer and CS both told me they would be happy to have the car held for me until my return.

The problem here is the cat is out of the bag . . . I do not think there is any cost to the dealer in the first 30 days a car sits on their lot. That's how flooring works. But dealers do like to sell cars this month, not next month. That's why the last day of the month is a great day to buy a car. So, you are up against (a) having told the dealer you could take the car this month (you just don't want to) and (b) the dealer's desire to move the car in June.