Posts Tagged ‘use tax’

Why is It That the 99% Pays the CA DMV for Auto Registration But the 1% Ferrari Lambo Crowd Doesn’t?

Monday, June 18th, 2012

Here’s the 99% in Lane 2 – no apparent problems here: 

Click to expand

And here’s what’s in Lane 1 a few miles down the very same freeway  - it’s YAFWR (Yet Another Ferraro Without Registration):

Do you know why the richers of California tend to go without license plates on their Ferrari and Lamborghini and whatnot? Well, it’s because of the cost.

Buying a Ferraro like this one to tool around on the weekends for a little while will run you $20-something thousand in “use tax” whether you drive it a little or a lot. So what you’ll need to do is to make some arrangement with your cheesy exoticar dealer – if you think about it for a while, you’ll figure something out.*

And the Tax Man prolly won’t catch you.

So that’s why the 99% pays the CA DMV for auto registration and the 1% Ferrari / Lambo crowd does not.

*Oh, it’s a race car, not a regular car. Oh, as soon as I bought it I took it to, let’s see here, Nevada? Yeah, Nevada. As a 1%-er, I live in the crappy, windblown, high desert of Nevada instead of gorgeous California – do you buy that? Oh, that was a repositioning trip, and, you know, I hated it. I don’t actually like the job of ferrying Ferrari about, it’s such a burden. Oh, it’s…  

“Let’s Keep Not Paying Taxes – YAY!” Taiwan’s NMA-TV Takes on the Amazon v. State of CA Sales Tax Fight

Monday, July 18th, 2011

NMA-TV out of Taiwan, Free Republic of China, well, they’ve got us pegged. They know all about what goes on in California and they show that with pithy animated videos.

As here, with the whole Governor Jerry Brown vs. Jeff Bezos / Amazon.com sales tax / “use tax”* issue. NMA already has a proposed slogan for the statewide initiative that’s coming our way from Amazon.

See?

And here’s Jeff Bezos (fresh from swimming in a pool of his money) explaining things to California Governor Jerry Brown and our Official State Animal, who looks hungry for a little tax money.

It’s going to be a tough row to hoe getting people to vote for the Amazon tax next year, IMO.

Anyway, good job NMA-TV.

*The tax is on your “use” in CA of whatever you buy. It’s pretty much like a sales tax except it’s based on the tax rate of where you live (as opposed to sales tax, which is based upon where you buy something). 

Gavin Newsom, Taxes, and the Death of San Francisco’s Auto Row

Friday, February 13th, 2009

Well read the news and turn the pages, comes today an opinion piece from San Francisco Mayor Gavin Newsom, appropriately titled “Gavin Newsom says budget challenge goes beyond City Hall.” It’s all about typically political choices regarding the allocation of scarce resources and arguments concerning elasticities of demand, blah blah blah. Fine. But here’s the thing:

“Consider the hurried proposal from the Board of Supervisors to raise the sales tax: If San Francisco raises the sales tax and South San Francisco does not, then we face the serious risk of large employers and tax generators, like auto dealers and major retailers, moving a few miles south.”

Just don’t know where to begin with that one.

Wherever you buy your car, power it with grease (pictured, in the bottle) or biodiesel, something like that:

 

Yes, car dealers are affected by local sales tax rates, but no, not in the way the writer of that statement apparently believes. ‘Cause if you think you can escape San Francisco County’s (purported, current or future) high, high tax rates by buying your new car outside of the City and County, you are mistaken. Just try it sometime, and you’ll see.

Of course Auto Row and the rest of San Francisco’s new car dealerships are hurting these days, no doubt, but it’s not because of geographic tax differentials.

Just saying.