Legal Question in Business Law in California
California law requires a car dealer to pay sales tax on a vehicle it sells. However, the car dealer's contract says that I agree to pay the sales tax. Can a car dealer contract around the law like this?
Asked on 8/01/15, 4:20 pm
2 Answers from Attorneys
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
I believe the answer is as follows: only one sales tax is collected and paid on a dealer-to-consumer transaction; however, the consumer pays the tax to the dealer, then the dealer subsequently remits (or "pays") the sum collected to the State.
Answered on 8/01/15, 5:18 pm
You are mistaken. The law technically requires the purchaser to pay sales tax on sales. It also requires retailers to collect it for the state and pay it over on a quarterly basis.
Answered on 8/01/15, 6:57 pm
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