Registration Sales Tax

[Seemer]

Anyone else get hammered in their State with sales tax when registering? Here in Mass, the motor vehicles dept. uses the NADA Average Retail value...which is $8550!!! Tax rate is 6.25%. How do I get around this? Let's just say that I paid less than $8550 for the Wag. Even the low retail is $5325.

Since the Jeep is pre-1991, there is no trade-in value which I am told is what they usually use for setting taxes on "Current" vehicles. Under the Classic Cars, there is only low, average and high retail. There is no consideration for mileage, condition of the vehicle etc.....

[mdill]

Anyone else get hammered in their State with sales tax when registering? Here in Mass, the motor vehicles dept. uses the NADA Average Retail value...which is $8550!!! Tax rate is 6.25%. How do I get around this? Let's just say that I paid less than $8550 for the Wag. Even the low retail is $5325.

Since the Jeep is pre-1991, there is no trade-in value which I am told is what they usually use for setting taxes on "Current" vehicles. Under the Classic Cars, there is only low, average and high retail. There is no consideration for mileage, condition of the vehicle etc.....

Present your bill of sale :rolleyes: that is the basis for the tax.

[Seemer]

Bill of Sale does not fly here in Mass as you can easily "fix" the document to represent any price and therefore avoid tax.

[srobertsfsj]

My father in law gave me the 86 as a gift and had the document notarized. Here in Colorado they base the registration off several factors, retail value, purchase value, weight, etc. I paid about $76 for my registration. That included new plates.

[babywag]

The law clearly states "trade-in value", or "purchase price" whichever is higher.
They cannot tax you on any other amount...they cannot use the retail value.

[Seemer]

Here is the exact text from the State website:

"The sales tax for a private sale is calculated at 6.25% of the purchase price or the National Automotive Dealer Association (NADA) trade-in value, whichever is higher."

Since pre-1991 vehicles fall in "Classic Cars" under NADA, they only have low, average and high retail values...as noted in my first post.

[mdill]

Bill of Sale does not fly here in Mass as you can easily "fix" the document to represent any price and therefore avoid tax.

Get it notarized and back it with your check or withdrawal statement, it is their job to "prove" you did not pay what is stated (since stating otherwise is fraud, on both the seller and you if you present a false bill of sale) it is not your job to "prove" anything just to tell the truth.

"Here is the exact text from the State website:

"The sales tax for a private sale is calculated at 6.25% of the purchase price or the National Automotive Dealer Association (NADA) trade-in value, whichever is higher."

Since pre-1991 vehicles fall in "Classic Cars" under NADA, they only have low, average and high retail values...as noted in my first post."


Your hosed ! (Move somewhere else or join the Tea-Party guys and get that sorta crap law off the books)

Mike D.

[babywag]

Here is the exact text from the State website:

"The sales tax for a private sale is calculated at 6.25% of the purchase price or the National Automotive Dealer Association (NADA) trade-in value, whichever is higher."

Since pre-1991 vehicles fall in "Classic Cars" under NADA, they only have low, average and high retail values...as noted in my first post.

Trade-in value is NOT the same as low/average/high retail values.
If you are looking on the NADA website, you aren't going to find trade-in values unless you pay.

[Seemer]

But NADA does provide rough, average and clean trade-in values for free for all 1991 and more recent vehicles...???

[The Colonel]

Wow.

I just registered mine here in IL and for vehicles that are 11 years or older, the tax is a flat $25. ;)

http://www.revenue.state.il.us/TaxForms/Sales/RUT-50-Instr.pdf

[Seemer]

And I live in "Taxachusetts!"

[babywag]

But NADA does provide rough, average and clean trade-in values for free for all 1991 and more recent vehicles...???

Yeah, so does Edmunds & KBB, they don't do it anymore on older vehicles either.
NADA only started giving away the info for free after other sites started to.
Once upon a time, NADA was a pay only deal, they didn't share trade-in value with the general public.

Since purchase price is usually more than trade-in value I wouldn't worry about it too much.
Look @ the trade-in figures for a '91 GW in similar condition, and yours would obviously be lower.

[Seemer]

OK - I'll check it out and report back tomorrow after I go to the dept.

[joe]

WA used to go by the bill of sale but now uses a private guide.

[dan1488]

WA used to go by the bill of sale but now uses a private guide.

Are you talking registering or getting a title? When I get a new title for mine they go by what I paid for it as written on the bill of sale. I haven't registered any of them so not sure how much that is can't be much though.

[srobertsfsj]

Sorry, when I said retail value I did mean "blue book" price and not original retail value.

[DerekTJeep]

Seems like it does not matter the value of vehicle here in Illinois. It seems like age is every thing. I got few Indiana titles and registered them here in Chicago. It does not matter if I write down the value as $200 or $2000. All about age. I feel bad for those that has to pay taxes based on vehicle values. I hope that Illinois doesn't have to do that based on the way our government has operated.

If that is the case on paying taxes based on vehicle value, then car dealerships would go out of business. How can they stay in business??

[AZcherokee79]

I hate to rub it in.. but here in Phoenix AZ.. we pay NO SALES TAX on used cars unless purchased at a dealer. It was a shock when I moved here from Michigan.. where they tax the crap out of you!

[[]V[]AXX]

Being originally from Vermont, I know how you feel. I bought a 1990 Ford Econoline cargo van in Arkansas, and paid no sales tax to tag it, because I paid less than $2000 for it. I move back to Vermont, and go to tag it, and they tell me that since I have no proof of sales tax paid, that they are gonna charge me sales tax to get my tags. I blew up, and caused a scene at the DMV, and even called the capital. It's nothing but blatant, highway robbery. The vehicle was already tagged in another state. They based the tax on "book value". I asked what book, and they said they had a listing in their database. So, it's a made up "book value" to increase tax revenue. I went to a local dealer, and had the van appraised at a whopping $350. I then took this appraisal back to the DMV, and showed it to them. They were forced to accept that appraisal, instead of the $2500 they claimed was book value for the van. See if that line works. I didn't even have to pay for the appraisal.

My advice, though, is get outta the Northeast. Let it burn to the ground. It's already on fire, just like California.

[joe]

Are you talking registering or getting a title? When I get a new title for mine they go by what I paid for it as written on the bill of sale. I haven't registered any of them so not sure how much that is can't be much though.
I'm refereing to changing the title over and paying sales tax on the vehicle purchase price. The registration and plating for street use is reasonable(not cheap) here compared to some states.

[fireman91186]

V[]AXX'] My advice, though, is get outta the Northeast. Let it burn to the ground. It's already on fire, just like California.


Hey what about California we don't get taxed in this state. ;) ;)

[J10_IA]

In Iowa if the truck is over 10 years old its a flat $65 fee.

[JERSEY JOE]

In NJ you declare the sale price and back it up with a bill of sale. The state sometimes contacts the seller to verify the sale price. So if you pay $2000.00 for a car then report $800.00 to DRV, they will send a letter to the seller and ask what the sale price was. Point is get your lies straight. No one here likes to pay sales tax on used cars and most people cheat the state somehow.

[Cecil14]

In NJ you declare the sale price and back it up with a bill of sale. The state sometimes contacts the seller to verify the sale price. So if you pay $2000.00 for a car then report $800.00 to DRV, they will send a letter to the seller and ask what the sale price was. Point is get your lies straight. No one here likes to pay sales tax on used cars and most people cheat the state somehow.
I would hardly call it cheating the state. LOL The sales tax has been paid on the vehicle at the original time of purchase. Absolutely no reason they should be able to double charge on that, no matter how many times it gets sold afterwards. Do you pay sales tax on a used TV? Loaf of bread sold between friends?


aa

[joe]

Do you pay sales tax on a used TV? Loaf of bread sold between friends?


aa
In WA if the state could figure a way to monitor the sales...yeah ya would pay sales tax. Last year WA tried to charge a flush tax(idea I think came from MA) but they figured out everyone doesn't live in Seattle on city water. Rest of us have our own well. So's we doan hear much about that anymore...till next time.
It's not good when an entire state is an annexed suburb of Calif. :(

[2ToneBluJ10]

In NJ you declare the sale price and back it up with a bill of sale. The state sometimes contacts the seller to verify the sale price. So if you pay $2000.00 for a car then report $800.00 to DRV, they will send a letter to the seller and ask what the sale price was. Point is get your lies straight. No one here likes to pay sales tax on used cars and most people cheat the state somehow.

PA is like pretty much like NJ AFAIK, or it was 10 years ago when I bought my last used car here. PA is grubbing for money too and they will probably change to using some kind of book value guide if they haven't already.

[Seemer]

Finally made it to the motor vehicle dept. for the raping. They used $5600 for the book value which resulted in sales take of $350. I just bent over the barrell and took it cuz I knew the lady was just doing her job. She said a lot of people totally flip out when they hear the state "book value". Anyway, you can apply for an abatement, which I will do.

[710 Burner]

Ouch. In OK they base the excise tax on the FDP, prorated for age. If you have a bill of sale, that value can be used so long as it is not more than 10% lower than the FDP.

[whowey]

I registered mine about a month ago.. paid $25 road use tax. In Illinois its based on the vehicle age. But if the age is under a certain year its based on sale price. Luckily... I never purchase anything under that certain year...

[250psd]

In PA it is pretty much the honor system as far as the sale price goes. Then you pay tax on that. If the sales price is below
NADA the notary has to fill out a form why. I usually agree with the buyer or seller to tell the notary a lower price so they or I don't have to pay a higher state tax. And when they ask why? Just say "It needs work."

[fanboatman]

In Texas they go by blue book unless it is more than 20 years old, or you can have an apraisal done and they will go by that. I just can't understand how they can legally charge you sales tax on something which has already been taxed when it was new. Makes no sense to me.

[jasonthomasfrance]

Just registered mine today in PA, $200 based on the sales price...