New contract with DMV pumps brakes on tax overcharges

Car buyers should no longer be overcharged taxes after a discrepancy was discovered last year by Board of Equalization (BOE) Vice Chair George Runner. Under a new contract with the Department of Motor Vehicles the BOE will now have more oversight of motor vehicle private party use tax collection, according to Runner’s office.
“Taxpayers should have confidence that their government isn’t charging tax that isn’t owed,” Runner said. “This new agreement drives home that point.”
Last year, Runner called for a review of how tax rates were charged in a letter to the DMV. As a result, an internal review found that the DMV had used ZIP codes to charge taxes, even though ZIP codes are often split between cities and counties that employ different tax rates.
“To avoid overpaying taxes, it’s important for Californians to know they can easily find the correct tax rate for their address at boe.ca.gov/taxrate,” Runner said.
The new contract helps DMV counter staff determine the correct rate for car buyers who live in ZIP codes with more than one tax rate. The agreement also creates a pilot program to explore and evaluate alternative methods to reduce reliance on five-digit ZIP codes used to determine tax jurisdiction.
A BOE review found roughly 7,000 cases in which taxpayers had been overcharged by the DMV. The Board will refund these overcharges to taxpayers, according to the BOE.
For further assistance, consumers may contact the BOE’s customer service center at 1-800-400-7115. For more information, visit boe.ca.gov/Runner .
Source: Runner’s office

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