I agree in advance this is a dry subject for a thread. In fact, I first raised this question in another thread and pretty much killed it stone dead.
**Asuka **mentioned in the other thread it’s California law that if you win a car on a game show, you have to be able to pay off the taxes immediately or else you don’t get the car. You’re not allowed to go to your bank to get a loan (using the car as collateral) or sell the car to pay back the taxes. California wants the money right then and there or else you have to refuse it.
With that fact presented, what would happen in this legal hypothetical? Michelle is a contestant from Indiana who wins an automobile on a game show produced in Hollywood, CA. The automobile shown on the program is just a demonstrative model so Michelle doesn’t have to drive the car out of the studio back to Indiana. Instead, the auto company gives Michelle the equivalent of an IOU. Michelle flies back to Indiana where she acquires possession of the same model of car at a local dealership.
Does Indiana’s state tax law apply here or California’s state tax law?