Sales tax on lease buyout

I'm going to put this in both north and south forums. Last I checked, you guys are still the same state, no?

If I'm a California resident and I buyout a leased car, I realize I will have to pay Cali sales tax on the deal. But what is the tax based on? Is it based on the purchase option stated in the lease? This makes sense to me because you have to pay Cali sales tax on every monthly payment. Or is the tax figured on the FMV of the car at the time of the buyout?

Also have any of you had any experience with the 10-day "third-party buyout" exemption from sales tax? Any pitfalls? Does it work if the third-party buyer is out of state?

Thx

 

Cali apparently has a 10-day "third-party buyout" rule where you can buyout the lease and then flip the car to a third party without you paying Cali sales tax. But, the third party will still owe sales tax to their local jurisdiction. However, because it is my understanding that the Cali sales tax can go over 9%, selling to someone in a lower tax state can be a big benefit.