If you need to commit fraud to avoid sales tax, perhaps you are spending too much...
Paying sales tax on a privately bought car
- Thread starter rmurer
- Start date
You can actually challenge the valuation in georgia. I did on my last vehicle purchase and won. State had to cut me a check for $200. Of course I only did this because the states valuation was off in my case.
I got a letter in the mail one time after I bought my buddy's wife's Civic for 2k. I had to provide proof or pay the difference on their "adjusted market value" or some BS. I guess the state must just look at high popularity vehicles? This was in NJ.
-J
Useless Edit: Does the forum automatically delete one of the spaces after the end of a sentence? I am putting two when I make the post, but when I post, it makes one.
-J
Useless Edit: Does the forum automatically delete one of the spaces after the end of a sentence? I am putting two when I make the post, but when I post, it makes one.
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Tell that to the exotic owners with cars registered in Montana. Montana allows a LLC to own a car. They also don't charge sales tax on a new vehicle. Make a phone call and for about 2K,a lawyer can set you up the LLC with a PO box, bank account, etc in Montana and then the LLC buys the new Ferrari 458. Hmmmm, 7% of $250,00+, or simply 2K?
It really sucked paying sales tax when I sold my high mileage 03 Cobra and bought an ultra low mileage 03 Cobra. I think the sales tax was over 2k to basically swap to a lower mileage car of the same year.
Thats what I can't understand is how some of these guys afford the sales tax, I see some people change new cars like they do shirts and everytime they have to be getting popped for 2-4k in sales tax, its unreal.
Thats what I can't understand is how some of these guys afford the sales tax, I see some people change new cars like they do shirts and everytime they have to be getting popped for 2-4k in sales tax, its unreal.
The difference is that one is legal and one is not. You can argue morality, but when it comes down to it, if Montana legally allows that to happen, no laws are broken. Many states have ways to try and claw back at that however. I know here in Colorado you can't register a vehicle out of state for permanent service in the state. It must be registered within 60 days of new purchase or 90 days after becoming a resident.
+65,000
+65,000
If a vehicle has valid registration from a different state and is insured, how can the State of Colorado enforce it to be re-registered in Colorado; i.e. if it's never been registered in CO, how does the state know it even exists? What if someone spends 183 days in a different state?
If you're a permanent resident of Colorado your car must be registered there. Technically speaking it's not something that Colorado would necessarily have knowledge of unless an offense occurred that brought it to attention, like getting pulled over and having the address discrepancy. Colorado does also have an insurance database so if you insured the car with a Colorado address, it would show up on that database.
That presents a separate challenge trying to insure the vehicle. Especially where something like an exotic is concerned, are you going to garage it in Colorado but insure it at an address in Montana? That's a surefire way to get any claim you may have denied. At least here in Colorado, going that route could end up being a large pain in the ass. Other states may differ.
That presents a separate challenge trying to insure the vehicle. Especially where something like an exotic is concerned, are you going to garage it in Colorado but insure it at an address in Montana? That's a surefire way to get any claim you may have denied. At least here in Colorado, going that route could end up being a large pain in the ass. Other states may differ.
Kansas has shitty rules. If you lived in Missouri you would only pay tax on the difference between the sales price of the old and the purchase price of the new. Even if you sell car a to billy bob and buy the new one from john doe.
That's funny, because I can buy a car for $1,000 and gift the person another 5K because I like them. I wouldn't be lying to the DMV in terms of how I bought the car for $1,000. The DMV isn't the IRS... who doesn't care if the seller received a gift as long as it's under $13,000.
They certainly suck. The difference between the two cars were $8,000. Add on to that another $2000 in taxes and it really makes you second guess buying something different. The taxes were 25% of the difference in price, and really hit home to me not to buy new vehicles.
I can't believe liberals think taxes don't have any effect on people's behavior.
By all means, if you believe that this is a working defense in court against a tax fraud allegation, do that.
Kansas did use to allow you to list "other considerations" as part of the selling price. I know my dad said you could put $1.00 and "other considerations" on the title and only pay taxes on rhe dollar.
I doubt the ladies at the dmv ever asked what the considerations were, lol.
I doubt the ladies at the dmv ever asked what the considerations were, lol.
I know Illinois depends on whether the car was purchased in or out of state. In state is a flat 6.5% of the purchase price. Out of state purchase has pretty good tax advantages as anything under 15k the tax is based on the year of the car which is usually no more than $300 after 15k it's bracketed in 5000 increments up to 30k with a fixed tax amount for each price bracket. At 30k or more you just pay a flat $1500 tax. Most of the cars I have owned I bought out of state from a private party just to get a better overall price for the car I want.
That's nice. I call it they can **** off.
That last sentence is good for me! And as for Colorado, that BS is exactly why there are a billion Texas plated vehicles from Colorado Springs and south.
For a person to person sale in WI as of Jan 1, 2016 along with completing the title:
Within 30 days of a sale the seller needs to report to WisDOT the:
Within 30 days of a sale the seller needs to report to WisDOT the:
- Vehicle identification number (VIN) of the vehicle
- Identity of the individual buyer
- Sale price
- Date of sale
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