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Published by Eva Rosenberg, MBA, EA

Volume 6, Issue 259        May 21, 2004

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» From: Ridgecrest, CA

Dear TaxMama:

We bought a car in a neighboring county but were taxed at our county rate. Where do the tax dollars go - our county or county of purchase?

Thanks.

Steve


TaxMama Replies

Dear Steve,

The county of use. Your home county.

Actually, they go to Arnold and disappear into our state's debt-ridden coffers, while our city and county sue to get the funds.

Any other political questions?

Actually, if you look at this year's California tax return, you'll see a new line for Use Tax. If the dealer had not collected it at the time, you'd have had to pay it with your personal tax return.

California is hurting financially. So, the government is finally going after taxes that are on the books, to avoid raising taxes.

We'll see if it helps.
Best wishes,

Eva Rosenberg
Your TaxMama


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