California RV buyers can avoid sales tax

Sept. 11, 2007

California residents who buy a new motorhome may be exempt from sales tax if the RV is registered in another state and kept out of California for at least 90 days after purchase.

The 90-day requirement was in place until 2004, when state law changed to require residents to keep their RVs, yachts and airplanes out of the state for one year to receive the sales tax exemption. According to the Los Angeles Times, the tighter rules resulted in a $45-million revenue increase for each year since 2004.

The new budget passed by the California Legislature on Aug. 21, 2007, changed the out-of-state time requirement back to 90 days.

In Los Angeles, which has an 8.25 percent sales-tax rate, the tax bill for a $150,000 motorhome would be $12,375. In Sacramento, which has a 7.75 percent sales-tax rate, the tax bill would be $11,625.