Will the tax increase in OC change your purchasing plans?

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Priced_Out_IT_Guy_IHB

Priced_Out_IT_Guy_IHB

New member
I'm curious whether or not those who in the IHB crowd have decided to make large purchases this year (ie. a new vehicle) are going to put their plans on hold with the new tax increases that went into effect today. As of April 1st, the base sales tax has increased 1% and the registration fee has increased .6%. This adds about $560 to a $35,000 vehicle during your year of purchase. Personally, I may wait until I move out of state or can register out of state to purchase a new truck for my business. I already make some of my larger personal purchases in Oregon to save money.



I realize most individuals who purchase cars finance them and could not tell you the tax rate if you asked them, so ultimately the tax increase will just lower the maximum amount they can finance, much like the interest rate on a mortgage. However, since this forum is not your average joe six-pack consumer, will the tax increases affect your larger personal or business expenditures?
 
Will probably make large purchases on the internet from an out of state vendor, but I have done that in the past anyway. I'm not so sure I will go as far as others and buy their toilet paper on Amazon. I guess I'll do that until the loophole is finally closed and we'll all be paying tax on all of our internet purchases.
 
I will be spending more, because, overspending is what got us into the current situation, and raising taxes to support continued overspending is the right thing to do, and I want to help out as much as I can.
 
I think if I was going to buy a new Car the extra tax wouldn't stop me.....



I've seen a few Car Dealer Ads exclaiming "Buy now before April 1st" But I did the math, and I can tell you that spending $35,000 to save $650 still leaves you over 34k behind :-S



Just wait until the weekend, Dealers will be saying "Buy now and we will pay the additional sales tax"
 
Economists will say tax is a dead weight loss that is split between both buyer and seller depending on supply and demand. These days I would think the sellers will be paying most of the tax anyway, one way or another.



No car purchases planned for me, and probably not for several years. By then my cars will be 20 years old on average. The semi-large purchases that I'm planning on for this year can only be bought from out-of-state anyway.
 
[quote author="Daedalus" date=1238683304]Economists will say tax is a dead weight loss that is split between both buyer and seller depending on supply and demand. These days I would think the sellers will be paying most of the tax anyway, one way or another.



No car purchases planned for me, and probably not for several years. By then my cars will be 20 years old on average. The semi-large purchases that I'm planning on for this year can only be bought from out-of-state anyway.</blockquote>


They just don't grow the good stuff in cali anymore!
 
This certainly won't help the recovery of car sales. There is a provision in the new federal tax code to allow for the deduction of sales tax on new cars on your federal returns for 2009.
 
[quote author="Daedalus" date=1238683304]Economists will say tax is a dead weight loss that is split between both buyer and seller depending on supply and demand. These days I would think the sellers will be paying most of the tax anyway, one way or another.



No car purchases planned for me, and probably not for several years. By then my cars will be 20 years old on average. The semi-large purchases that I'm planning on for this year can only be bought from out-of-state anyway.</blockquote>


I know the feeling, the Genesis is newish, but the mustang is officially 20 years old. Good thing too! I am getting the 347 freshened up a tad and putting water injection and a few other items in it.



-bix
 
This one gave me a little laugh. Is there anyone, anywhere who voluntarily pays taxes to California on items purchased from an out of state vendor?







<a href="http://www.latimes.com/news/opinion/commentary/la-ed-tax13-2009apr13,0,961292.story">You still owe online</a>
 
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