Important questions about registration in California

[Cashburn]

Originally Posted by twobjshelbys

The Montana LLC tax dodge is a thing of the past. Most states are on to the deal and if they find you've registered it and don't have a legitimate business will be mighty unhappy. A number of years ago the counties around Denver went looking for motor homes and boats with Montana registrations (easy to find since they are often parked outside). They were fined, had to pay the sales tax that was due and also registrations that had been avoided since the date of the fradulent Montana registrations. Some people were mightily unpleased.

I don't understand why people would do it on a Cobra. Sure, I had to pay sales tax on the purchase amount, but since it was registered as a 65 the plates were something like $50 every 5 years. (More if you have a vanity plate.)

If the state you are registering affords you the process to register it as the year it replicates then there is no question. The clients I have known to use it were never looking to avoid taxes, it was always to simplify the process in several tricky (and often unrealistic) states. Some of these states allow individuals within the DMV to literally rewrite the rules on the spot.

FYI California is nowhere near the most difficult states and I admire their clear process that appears to be consistent. I would not look for loopholes if CA were my state as they simply are not needed.

[twobjshelbys]

Originally Posted by Cashburn

If the state you are registering affords you the process to register it as the year it replicates then there is no question. The clients I have known to use it were never looking to avoid taxes, it was always to simplify the process in several tricky (and often unrealistic) states. Some of these states allow individuals within the DMV to literally rewrite the rules on the spot.

FYI California is nowhere near the most difficult states and I admire their clear process that appears to be consistent. I would not look for loopholes if CA were my state as they simply are not needed.

Both CO and NV use year it replicates.

The Montana thing is quite absurd. They also have lots of airplanes and boats. I saw something, I think probably in jest, that there were more Cigarette boats in Montana than any other state and they don't have a lake big enough to even run one. Lear Jets too, but it's quite easy to establish a legit leasing firm for airplanes and base it there.

[jeffgrice]

Originally Posted by Cashburn

If the state you are registering affords you the process to register it as the year it replicates then there is no question. The clients I have known to use it were never looking to avoid taxes, it was always to simplify the process in several tricky (and often unrealistic) states. Some of these states allow individuals within the DMV to literally rewrite the rules on the spot.

FYI California is nowhere near the most difficult states and I admire their clear process that appears to be consistent. I would not look for loopholes if CA were my state as they simply are not needed.

Cashburn...true..true...

[spdbrake]

To me it would make sense more to just to contact Millerspeed or Bamrides as they are the CA BDR dealers. My guess is they know how and would assist in the process if it were tied to a sale and not a charity event.

I wouldn't buy your car elsewhere and ask them for help.
Not cool as "bringing your eggs to Denny's" is the term we always use in our shops.

Alistair Miller
Millerspeed, Inc.
Redondo Beach, California
310-408 8798
info@MillerSpeed.com

Or

Bamrides
(858) 259 7710
info@bamrides.com
Address:
7490 Opportunity Court, Suite 3305
San Diego, CA 9211

[Mark IV]

[quote=spdbrake;1470617]To me it would make sense more to just to contact Millerspeed or Bamrides as they are the CA BDR dealers. My guess is they know how and would assist in the process if it were tied to a sale and not a charity event.

I wouldn't buy your car elsewhere and ask them for help.
Not cool as "bringing your eggs to Denny's" is the term we always use in our shops.

You would be amazed at how many cars we have not sold but have helped owners with the New York process. Many are not even Superformance cars! We have loaned sidepipe covers to people in states that require them for inspection as well as other items like back-up lights, etc.

This is a pretty small community and some good karma goes a long way......

[coach36]

Originally Posted by CJ428CJ

SB100 was written to allow up to 500 "kit cars" a year to be registered. It allows you to register your car based on the year of the motor used or the year of the car that it most closely resembles. It does not cost less in taxes or save you any money. What it does do is it allows you to legally register your car and to avoid the biannual smog inspections that are otherwise required in California. You are correct that noise is not an issue and is not addressed by the SB100 process. Your car will be registered as a 2020 Specially Constructed Vehicle.

As others have said, you'll need to start out at the DMV. Bring your receipts. You'll need to show separate receipts for the engine and the car. You'll pay taxes on the full value of the car (including labor) less taxes that you've already paid for parts purchased in California. Next you'll need to take it to the CHP. They check to make sure the car and major components are not stolen. They'll also assign a VIN number and affix a tag to the car. You'll then need to go to a smog referee station. They'll check to make sure it has the required 1965 smog equipment. Basically a PCV valve but others have had to do other "minor" tweaks. They will also put your car on the smog machine but there is no pass/fail criteria. You may also have to take it to a Brake and Light inspection station. Some have had to do that but others have not.

In my opinion SB100 is a godsend since it gives those of us in California a legal way to smog and register our replicas without having to pretend they are something they are not (vehicles originally built and sold in 1965). There might be a little consternation as you work your way through the process but in the end it will have been worth it. You'll have a car that is legal in California, it won't need to go through biannual smog inspections and you won't need to worry about receiving a certified letter from the state attorney general - something that happened to many 1965 registered replica Cobra owners back in the mid 2000s. See this thread or do a search for posts from "morgester." CA: New criminal cases filed

All clear so far. But taxing labor? I'll do this all myself... what then?

[CJ428CJ]

But taxing labor? I'll do this all myself... what then?

The DMV is trying to establish the value of the car since your annual registration fee is based on that value. As a result, they want you to include the value of the labor to build the car even if that labor is done by you. In reality, I'm sure most people take a great deal of liberty when making that estimate.

[coach36]

Originally Posted by CJ428CJ

The DMV is trying to establish the value of the car since your annual registration fee is based on that value. As a result, they want you to include the value of the labor to build the car even if that labor is done by you. In reality, I'm sure most people take a great deal of liberty when making that estimate.

Gee. I wouldn't even know to calculate that one

[eschaider]

The calculation is a walk in the park ...

Go down to the local Ferrari, Lambo or other high end sportscar service center and look at the hourly rate they have posted on their wall for their labor charge. Multiply this number by two (because there are no manuals to tell you how to service your Cobra). To that number add an additional 50% increase to reflect the additional Sherlock Holmes skills inventory required of the technician to work on an undocumented supercar (whether or not it is true).

Once you have this number add 30% just because you are good guy who feels guilty about another 100% adder — and there you have it! A diligently calculated fair hourly rate. The only thing you are missing now is the hourly multiplier — which as luck would have it is relatively easy to calculate.

Take the number of posts you have on CC multiply it by one and five eighths (1.625) and place the hours unit behind it. The multiplier represents the hours online you have spent looking for knowledge and understanding of the vehicle and all its intertwined mechanisms

Now multiply the hours by the hourly rate and you have the glorious number you have, so valiantly, been searching for!

Easy, peasy, lemon squeezy ...



Ed

[patrickt]

Originally Posted by CJ428CJ

The DMV is trying to establish the value of the car since your annual registration fee is based on that value. As a result, they want you to include the value of the labor to build the car even if that labor is done by you. In reality, I'm sure most people take a great deal of liberty when making that estimate.

So do the surgeon and the schoolteacher both value their labor hours the same?

[Varmit]

Originally Posted by ERA 626

OK so what if your car is in fact titled as a 1965 shelby cobra in montanna under an LLC... so what happens when you try to register it in CA? it seems as only a temporary solution, what am I missing here?

Makes no difference, it Cali is will be registered as a Special Construction Vehicle, you may need all the info from the build if you have it.
NOTE Of CAUTION; You will want to find a DMV who has a person knows about the process of registering a Special Construction automobile if not you are in for a very rough ride.