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Sales Tax Question - Parts and Accessories

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  #11  
Old 12-15-2018, 07:58 AM
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Originally Posted by psyshack
are you kidding me? Are you for real? Really,,, and you own a harley and your concerned about tax in the single dig? As hd and one of there dealers is screwing the crap out of you to start with? And your worried about tax??? What a loser. I bet your cheap *** tries to write off a toy run.
lmao...
 
  #12  
Old 12-15-2018, 08:21 AM
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Originally Posted by HarleyBob52
Though thought by many otherwise,not every HD owner is "rolling in the dough". And can afford to put every knick knack accessory on their bike from led lights to fender skirts.. Some of us try to save every buck we can!!

absolutely and in this case, I'm trying to minimize what I'm paying to the state and locals

it's not about what I can or can't afford
 
  #13  
Old 12-15-2018, 09:37 AM
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Labor is usually sales tax exempt, at least in Calif.

If dealer installed, on a purchased, it seems for convenience the dealer would roll the labor cost
and the add on parts cost into the purchase price and charge tax on the entire amount....vehicle, accessories, labor.
That would include a financing situation.

I am unsure how a dealer treats a extended warranty in the above case. Seems to me that
is not taxable, but not sure, same as registration fees are not taxable
and that could be the way to not tax the accessories/ add on labor in
the contract form entries.

Ideally, the accessories parts and labor would be on a separate invoice. Then only
parts/ add ons are taxed as mentioned above by another co-member.

Calif is about 10% sales tax.

Make the dealer work for your business! The sales contract form can be manipulated.
Good luck.
 
  #14  
Old 12-15-2018, 09:44 AM
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I agree with Kenny ... In the years I was in business in Michigan tax on labor wan't allowed ... As to an answer to the OP's query, I'm a bit confused :<(
 
  #15  
Old 12-15-2018, 10:02 AM
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Originally Posted by LoneRiderFLH
OK, rather confusing to me. How about buy from Board Tracker and avoid sales tax and get free shipping and then put the parts on yourself?


And get 20% off for online purchase!!
 
  #16  
Old 12-15-2018, 10:03 AM
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Every dealer I've seen in CA puts a separate pack on the bike and breaks up the parts and labor. Labor is not taxed. Sales tax in CA is actually 7.25% but some local cities and counties add to that. In Sacramento County it's 7.75 percent. In Los Angeles it's 9.5 percent.
 
  #17  
Old 12-15-2018, 10:13 AM
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Originally Posted by 6113_
yes, essentially 9.75% sales tax depending on the county (7% base rate and counties can add up to 2.75%) so on $3k worth of parts that would be nearly $300 but vehicles are taxed at a rate of 7% up to about the first $6,000 I think so on a $25,000 purchase you're paying $1,800 in taxes on the vehicle sale.

So depending on the amount of add-ons purchased separately or bundled into the sale price of the bike can impact the number of dollars spent on taxes. Adding in labor and the subsequent tax also impacts the bottom line.
While it's great that you have done some calculations to discover just how screwed over you are getting by your gov'ts, they've made it very hard to evade their ominous rules and reg's. By design, they have created a web of rules/reg's that are so intertwined, that it's practically impossible to "get away" with an advantage. Those that try to "beat the system" are often found and prosecuted. Anyway, good luck with trying to figure a way to beat the system. Maybe check with a CPA as far as what you can do to legally "evade" taxes.

! possible solution to not paying taxes... don't buy anything, and work on everything yourself. Be sure you're totally "off-the-grid" too.
 
  #18  
Old 12-16-2018, 10:41 PM
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Sounds like you could write the contract to include the parts as part of the vehicle, if the dealer delivers it with the parts installed, with one sale price stated for the package. Without installation, they're just parts, not part of the vehicle.
 
  #19  
Old 12-17-2018, 07:25 AM
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Unless your buying something mail order from a company that is not in your state or has a branch in your state you pay sales tax on everything.
 
  #20  
Old 12-17-2018, 01:25 PM
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Here in Virginia the dealer doesn't pay any sales tax on accessories installed on a vehicle in their inventory. If they add the price of those accessories to the sale of the vehicle, they you are taxed at the 4.15%vehicle tax rate. If they install the accessories after the sale, or if the buyer installs the accessories you are taxed at the local sales tax rate which can vary by locality between 5.3%-7%. So depending on your locality you could save between 1.15% and 2.85% of the cost of the accessory. Of course you are going to spend way more than that having the dealer install it vs doing the work yourself.


And to get way off topic. @6113 when did you earn your PSB? I was WHCA 83-89.
 


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