Paying sales tax on a privately bought car

[rmurer]

better off just paying the full tax.

 

[08mojo]

In ga, the tax is paid on the state's valuation of the car. It doesn't matter how much you actually paid for the car. I'm not sure how MI does it, but it would make sense if they follow the same guidelines as GA: use the valuation of the car for tax purposes rather than taking someone's word for what they paid for the car.

 

[Booky]

Some states have a minimum you can put down, like $100.

You could always buy the car for $100, then turn around and buy the spare tire from the seller for the remainder of his asking price.

 

[13COBRA]

....well. That's illegal.

 

[Grabber]

I'd say this is illegal and if you're caught, could mean fines and jail time. Unless they don't check the records of you buying a used Cobra or something that is easily worth 10K, there is something grossly wrong with the state.

 

[Blk04L]

Why risk it?

IIRC I had to have the seller sign the Bill of Sale for $XX,XXX amount, so it may not be just you getting in trouble. And I'm not sure the seller would want to be involved in any repercussions. Obviously some states like you mentioned don't require a BoS.

 

[Torch10th]

The bill of sale protects your ass too. If you have a bill of sale stating you sold the car for $500.00 instead of $5000.00 the guy has some legal reciprocity to come back and say you overcharged him and has that bill of sale as proof, with your signature on it.

It's not worth it ever. Do it by the book.

 

[50stangpower]

Do it. They get enough money. Just have the guy write a bill of sale for less. It's done all the time.

 

[_Snake_]

It's illegal.

That being said, it happens all the time and few are ever caught.

 

[tones_RS3]

The bill of sale protects your ass too. If you have a bill of sale stating you sold the car for $500.00 instead of $5000.00 the guy has some legal reciprocity to come back and say you overcharged him and has that bill of sale as proof, with your signature on it.
It's not worth it ever. Do it by the book.

^^This.
Just to be on the safe side.

 

[CV355]

Nope. Never. Never ever. No way man. No.

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And I make sure to report the $20 I make in interest in my checking account on my taxes. Our government only works as well as it does when the citizens are honest and pay to ensure its survival.

 

[Kevins89notch]

**** the state. They already collected tax when it was sold brand new. I understand something that is fair like a gas tax, but collecting tax every time a used car transfers hands is pathetic.

OP, don't go buying a 2015 Viper and try telling the DMV it was $250. Now if you're buying an average 5 year old commuter car for $7,000, just use the "price" in your negotiating. You say $6,800, he wants $7,200, you agree on $7,000 as long as he leaves the price blank on the title. Write in whatever you like, but don't try $50. I suggest like $1,000, mentioning something like "Yeah, just needs a new engine and tires and she'll be golden."

 

[Kevins89notch]

The bill of sale protects your ass too. If you have a bill of sale stating you sold the car for $500.00 instead of $5000.00 the guy has some legal reciprocity to come back and say you overcharged him and has that bill of sale as proof, with your signature on it.

It's not worth it ever. Do it by the book.

Cash for title, and that's that. Overcharged him? This isn't a used dealership.

 

[Sonic605hp]

No comment. One of the rules is to not discuss illegal activity, criminal.

 

[Machdup1]

You'll probably get away with your tax fraud unless you are dumb enough to go online and tell investigators you are committing a crime.......

Oh wait, don't worry they probably dont have the interwebs in Michigan....Oh wait, nevermind.

 

[10splaya22]

I've never been questioned as long as the title and the bill of sale match of course.

 

[RDJ]

In todays world this is just stupid. although as has been said it is done and people sometimes get away with it. but states are starting to catch up to the fraudsters. Some states tax you on the blue book price or the price on the title whichever is greater. Some states tax you on what is written on the title unless in the eyes of the taxperson it is unrealisticly low then they pull out the bluebook. If you commit tax fraud and get caught it will not go well for you.

**** the state. They already collected tax when it was sold brand new. I understand something that is fair like a gas tax, but collecting tax every time a used car transfers hands is pathetic.

OP, don't go buying a 2015 Viper and try telling the DMV it was $250. Now if you're buying an average 5 year old commuter car for $7,000, just use the "price" in your negotiating. You say $6,800, he wants $7,200, you agree on $7,000 as long as he leaves the price blank on the title. Write in whatever you like, but don't try $50. I suggest like $1,000, mentioning something like "Yeah, just needs a new engine and tires and she'll be golden."

 

[spectreman]

**** the state. They already collected tax when it was sold brand new. I understand something that is fair like a gas tax, but collecting tax every time a used car transfers hands is pathetic.

Taxes on purchasing a used car, especially in a private sale, is double taxation. The original owner already paid the taxes for the car. Why is the new buyer paying again? They already have to pay the registration fees and such. It's robbery by the state. The founding fathers would roll over in their graves if they knew this shiite was going on.

Next time you're at a garage sale, offer to pay taxes on the crap you buy. See what happens.

 

[IA Shelby]

Fail on so many levels.

 

[ford fanatic]

**** the state. They already collected tax when it was sold brand new. I understand something that is fair like a gas tax, but collecting tax every time a used car transfers hands is pathetic.

This. It's bullshit.