Little-Acorn
Well-Known Member
When Calif state Democrats were fighting to raise taxes a few years ago, Republicans said they wouldn't vote for the increases unless they had a sunset date. Dems yielded (a historic event), and the sunset date was set as June 30, 2011.
That was last week. On July 1, Calif basic sales tax went back down, from 8.25% to 7.25%. (Some cities and counties add their own sales taxes to this amount)
On the same day, an increase in Calif's Vehicle Licensing Fee also went down, from 1.15% of a car's purchase price, to 0.65% of the price. So together, the amount you have to pay for a $20,000 car dropped by $300 from Thursday to Friday.
I wonder how many cars got sold this past 4th of July weekend, compared to last year's 4th of July weekend where there were no tax cuts?
If I was thinking about buying a car, and somebody told me they'd hand me $300 if I waited until July 1, I'd probably do it. Would you?
And I wonder how many people will buy their cars more quickly this summer, considering that a tax-hiking Democrat governor got elected and Dems are trying as hard as ever to raise taxes? How many people will "get while the getting is good"?
Finally, though the Calif state govt will get less on each car sale, will they make up for that if/when more sales get made? Will they see a net decrease, or a net increase, of revenue for these tax rates that went down?
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http://www.whittierdailynews.com/ci_18407941?source=rss_viewed
Sales tax cut, rollback in vehicle license fee expected to fuel more auto sales
By Kevin Smith, Staff Writer
Posted: 07/04/2011 07:56:29 PM PDT
Falling gasoline prices have given motorists some relief at the pump and a reduction in California's sales tax, coupled with a rollback in the vehicle license fee, are expected to fuel increased auto sales.
"It's obviously a positive change for us," said Mike Tapia, sales manager at Nelson Honda in El Monte. "When people get the chance to save money ... they take advantage of it."
Tapia said Nelson Honda already had a sale planned for the Fourth of July weekend. But the sales tax cut and drop in the vehicle license will spur more consumers to buy, he said.
"In the last few days we've had people saying, `I'd rather wait until they lower the sales tax,"' Tapia said. "Traffic has been up this year compared to the previous years. I think the economy is slowly getting back on its feet."
Frank Tavares, general sales manager at Toyota of Whittier, said his dealership is also expecting a spike in sales.
"Of course," Tavares said. "When there are less taxes people will buy bigger-ticket items."
Under California's newly approved budget, the statewide sales and use tax rate will decrease by 1 percent - a penny on the dollar - and the vehicle license fee will be lowered by 43 percent.
Todd Leutheuser, executive director of the Southland Motor Car Dealers Association, said California's sales tax has been prohibitively high.
It's hard to justify paying $3,000 in sales tax on a $30,000 car," he said. "It's money you just don't want to spend.
Now on a $30,000 car you'll be saving $450 - that's a car payment."
That was last week. On July 1, Calif basic sales tax went back down, from 8.25% to 7.25%. (Some cities and counties add their own sales taxes to this amount)
On the same day, an increase in Calif's Vehicle Licensing Fee also went down, from 1.15% of a car's purchase price, to 0.65% of the price. So together, the amount you have to pay for a $20,000 car dropped by $300 from Thursday to Friday.
I wonder how many cars got sold this past 4th of July weekend, compared to last year's 4th of July weekend where there were no tax cuts?
If I was thinking about buying a car, and somebody told me they'd hand me $300 if I waited until July 1, I'd probably do it. Would you?
And I wonder how many people will buy their cars more quickly this summer, considering that a tax-hiking Democrat governor got elected and Dems are trying as hard as ever to raise taxes? How many people will "get while the getting is good"?
Finally, though the Calif state govt will get less on each car sale, will they make up for that if/when more sales get made? Will they see a net decrease, or a net increase, of revenue for these tax rates that went down?
------------------------------------------
http://www.whittierdailynews.com/ci_18407941?source=rss_viewed
Sales tax cut, rollback in vehicle license fee expected to fuel more auto sales
By Kevin Smith, Staff Writer
Posted: 07/04/2011 07:56:29 PM PDT
Falling gasoline prices have given motorists some relief at the pump and a reduction in California's sales tax, coupled with a rollback in the vehicle license fee, are expected to fuel increased auto sales.
"It's obviously a positive change for us," said Mike Tapia, sales manager at Nelson Honda in El Monte. "When people get the chance to save money ... they take advantage of it."
Tapia said Nelson Honda already had a sale planned for the Fourth of July weekend. But the sales tax cut and drop in the vehicle license will spur more consumers to buy, he said.
"In the last few days we've had people saying, `I'd rather wait until they lower the sales tax,"' Tapia said. "Traffic has been up this year compared to the previous years. I think the economy is slowly getting back on its feet."
Frank Tavares, general sales manager at Toyota of Whittier, said his dealership is also expecting a spike in sales.
"Of course," Tavares said. "When there are less taxes people will buy bigger-ticket items."
Under California's newly approved budget, the statewide sales and use tax rate will decrease by 1 percent - a penny on the dollar - and the vehicle license fee will be lowered by 43 percent.
Todd Leutheuser, executive director of the Southland Motor Car Dealers Association, said California's sales tax has been prohibitively high.
It's hard to justify paying $3,000 in sales tax on a $30,000 car," he said. "It's money you just don't want to spend.
Now on a $30,000 car you'll be saving $450 - that's a car payment."
