Planning on buying a C'dale MT in Los Angeles en route to Europe. Will laterally pick it up in am and fly out in pm same day. Even though this is an export to sale to an Aussie I'm told that sales tax must be charged.

Question: is it possible to recover the sales tax at the airport or some other means?
A bit financial I know but many thanks for advice anyway.

I don't think so. If it's picked up at a shop that has (state/local) sales tax, the tax (legally) must be paid. Unlike some European countries, we don't provide for such relief that I am aware of, except in those airport duty free shops, and I don't think you'll find a Cannondale dealer there! It's a state issue, not a national tax. Buy it in Oregon and you won't have to worry, or pay the tax in CA and help out the Govenator.

Pay your taxes like everybody else

I don't think so. If it's picked up at a shop that has (state/local) sales tax, the tax (legally) must be paid. Unlike some European countries, we don't provide for such relief that I am aware of, except in those airport duty free shops, and I don't think you'll find a Cannondale dealer there! It's a state issue, not a national tax. Buy it in Oregon and you won't have to worry, or pay the tax in CA and help out the Govenator.

OK thanks for advice Hammerboy - thought I'd check it out anyway. Interestingly though one dealer offered to waive (aborb) the sales tax if I paid cash.

Pay your taxes like everybody else

had not thought of that. thanks Galen.

OK thanks for advice Hammerboy - thought I'd check it out anyway. Interestingly though one dealer offered to waive (aborb) the sales tax if I paid cash.

It's called skimming....mostly in the restaurant biz

I don't think so. If it's picked up at a shop that has (state/local) sales tax, the tax (legally) must be paid. Unlike some European countries, we don't provide for such relief that I am aware of, except in those airport duty free shops, and I don't think you'll find a Cannondale dealer there! It's a state issue, not a national tax. Buy it in Oregon and you won't have to worry, or pay the tax in CA and help out the Govenator.

That is one reason why I bought mine in Oregon, no sales tax. There was also the fact that one of my old riding buddies is part owner of the shop. He did absorb the shipping cost, as well as giving me a good deal on an 05, when he already had 06s in stock.

Dealers have some leeway in pricing, including 'absorbing' the sales tax. That is just good marketing as the dealer will pay the appropriate tax then and he'll have a happy Aussie customer who may send more Aussies for more tandems!
You'll save quite a bundle buying the C'dale in the US compared to the land of Oz!
Enjoy!

That is one reason why I bought mine in Oregon, no sales tax. There was also the fact that one of my old riding buddies is part owner of the shop. He did absorb the shipping cost, as well as giving me a good deal on an 05, when he already had 06s in stock.

Should have asked this question before placing a solid deposit in CA. Oh well, next time in Oregon. Thanks WheresWaldo.

Dealers have some leeway in pricing, including 'absorbing' the sales tax. That is just good marketing as the dealer will pay the appropriate tax then and he'll have a happy Aussie customer who may send more Aussies for more tandems!
You'll save quite a bundle buying the C'dale in the US compared to the land of Oz!
Enjoy!

Well maybe I should play the cash payment card and recover a small portion of the sales tax that way. Just good commercial practice. The round the world ticket and purchase of the C'dale in CA does save a few $. But looks like when possibly going for an upgrade I'll be heading for Oregon. Thanks Zonatandem.

Pel, you may also want to try the "No service" angle. Not a big deal, but it's not likely that you'll be bringing the bike back for it's free service. That's probably $30 they won't be paying their mechanics. Maybe more, maybe less. But there's no way to get the tax waived or reimbursed if you pick it up at the shop.

Don't forget to give Johnny Howard his share when you return. Of course, if you "Forget" that you bought it overseas, no duties/GST is due. Can I send you a sticker from a local shop to put on there? :D

Pel, you may also want to try the "No service" angle. Not a big deal, but it's not likely that you'll be bringing the bike back for it's free service. That's probably $30 they won't be paying their mechanics. Maybe more, maybe less. But there's no way to get the tax waived or reimbursed if you pick it up at the shop.

Don't forget to give Johnny Howard his share when you return. Of course, if you "Forget" that you bought it overseas, no duties/GST is due. Can I send you a sticker from a local shop to put on there? :D

Thanks for the info Expatriate - useful to have the 'no service' tip in the negotiation package. Good luck in Utah.

Probably the reason the guy offered to waive the sales tax with cash is because cash is fungible. In other words, the deal would be "off the books" as the cash could go directly into his pockets, no (official) paperwork would be created, no report or payment to the state, feds or otherwise. In other words, an "underground economy" type of situation. I don't know this for sure, and it may not be the case with this shop, but it often happens.

Germany just raised its (value added) tax I believe another 9% on top of the existing 15%, and the fear is this will create a large underground economy and revenue will actually decrease to the government. In the case of Germany, however, non-citizens can fill out a bunch of paperwork and get the tax rebated as they leave the country, but it's a real hastle I believe they do on purpose to make it hardly worth the effort and time required. On such a large purchase, it would be worth the effort, but what can you buy in Germany (or Europe in general) you can't buy cheaper over on this side of the pond? Don't get me started on socialism.... OHB

OHB, have you ever run a small business? The guy is waiving the tax because he's not paying a processing fee for a credit card payment, and he'll eat a bit of profit too in order to make the sale.

It's not worth it to a small business owner to cheat the government on a bike sale. If he's ever audited, he'll have to hand over paperwork showing what was bought, what was sold, and what's in his inventory. Hard to explain away a tandem. Small bits here and there can be claimed as goodwill, damaged inventory, or theft. But not a bulky, big ticket item like a tandem. There's also the issue of liablility. The shop should have some kind of liability policy in place. If a customer sued him for some reason, and he didn't have proof that he sold the bike, he'd have some explaining to do. It's just not worth it.

Pel should try to arrange a discount for whatever balance remains in cash. Maybe if he throws in a few jars of vegemite, they'll make him a better deal. :D

OHB, have you ever run a small business? The guy is waiving the tax because he's not paying a processing fee for a credit card payment, and he'll eat a bit of profit too in order to make the sale.

Yes I have. My business started out as a small one, but ended up a bit larger before I sold it 10 years later. And, for the record, we always did things above board, totally legal, etc. But, I have seen too many who don't.

It's not worth it to a small business owner to cheat the government on a bike sale. If he's ever audited, he'll have to hand over paperwork showing what was bought, what was sold, and what's in his inventory. Hard to explain away a tandem. Small bits here and there can be claimed as goodwill, damaged inventory, or theft. But not a bulky, big ticket item like a tandem. There's also the issue of liablility. The shop should have some kind of liability policy in place. If a customer sued him for some reason, and he didn't have proof that he sold the bike, he'd have some explaining to do. It's just not worth it.

I totally agree that it's not worth it, the extra 1.5% savings on cash vs. credit card does help a little. I believe the L.A. sales tax approaches 8 or 9%, and on a quick, export sale, the dealer may be willing to absorb the tax. I guess that would leave about a 20% margin. But, there are always those guys willing to take a chance to beat the tax man. As I indicated, I can't say that's what's happening here, and as you can tell, I don't condone it. It's just that I've seen it more often than I care to, and threw it out as an idle thought. It's a stupid thing to do, but it happens every day.

I could see it on parts/accessories, and definitely on service, but not on a tandem sale. The risk far outweighs the benefits.