View Single Post
      11-15-2012, 05:26 PM   #12
e90_will
Private First Class
14
Rep
133
Posts

Drives: e90 335i
Join Date: Feb 2012
Location: SoCal

iTrader: (7)

Quote:
Originally Posted by nbkkvv5 View Post
In CA, if you are not related to the other vehicle owner, then the transaction is considered a regular transfer and you will have to pay sales tax on the market value of the car your trading for. In addition, depending on the age of your car, you may have to get a smog certificate.

This is from the DMV site:
There are three primary differences between regular transfers and family member transfers:

1. A regular transfer requires smog certification in most cases before the vehicle can be registered in the new owner's name. A family member transfer does not require smog certification (See Smog Certification section) if the vehicle is currently registered and the biennial smog inspection is not due.

2. On a regular transfer, use tax based on the purchase price of the vehicle is due at the time of transfer. A family transfer is exempt from use tax with the exception of a transfer between siblings who are not minors. Transfers between siblings are exempt from smog certification regardless of age, unless a biennial smog is required.


3. A regular transfer requires the department to reestablish the vehicle value (reclassify) to determine the appropriate Vehicle License Fee due. The license fee is based on the purchase price or current market value of the vehicle. A transfer between family members is exempt from reclassification of the vehicle value.

To establish eligibility for the use tax or reclassification exemption, be sure to let the department know that this is a family member transfer.

A "family transfer" is when ownership is transferred to or from a:
• spouse
• parent
• child
• grandparent
• grandchild
• siblings
• domestic partner
Thanks for the info. So I guess theres no way to avoid a sales tax when trading with a non-family member.
Appreciate 0