DMV versus Reality?

Cobra2572

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I finally had an opportunity to get to the DMV to transfer the NC title from the previous owner into a VA title in my name. The title was properly filled out and notarized. I was informed that I also needed a bill of sale with purchase price or...I could pay taxes on the NADA average value. See picture below for DMV letter and value. I believe I will get a bill of sale.

image.jpeg

 

OLE PONY

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I always get a bill of sale for this very reason. That 3% tax on the purchase price adds up for Virginia!

 

Cobra2572

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I always get a bill of sale for this very reason. That 3% tax on the purchase price adds up for Virginia!
I spent most of my life in OH and bought and sold a lot of cars and never was asked for a bill of sale (that I can recall). It must be the delta between my reported purchase price and the perceived value that generated the DMV request.

 

73pony

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I would tell the dmv for that price, sold. Iowa dot just takes what ever you tell them.

 

71mach351

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Vermont screws you the same way. It doesn't matter if you get a great deal on a car, you pay tax on book valve. I bought my 56 f100 for $1500 six years ago and started restoring it. When I go to register it i'll be taxed on $9000. unless I can get an appraisal showing a lower amount.

 

OMS

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Hey, now you can prove to your wife you got a great deal :D :D :D

 

Bill73Ragtop

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former owner (25 yrs) of 1973 Convertible, 351c, A/C, RA
NYS taxes run approx 7% - 9% depending on local county % added to the base state. A receipt of sale has always been required so the state can decide how much to take from you in addition to whatever you paid for the vehicle. It's amazing how much they can make off these cars since they take their percentage each and every time its sold.

It's not unheard of for a buyer to request two receipts from private seller. One for the actual price paid and one for the DMV. As long as you don't get too far out of line on the value you are usually ok.

 

OLE PONY

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I bought a used boat and trailer last fall in Virginia for a total price for both. The Virginia DMV titles and takes the fees for the trailer and will process the boat paperwork and take the fees for the Virginia Department of Game and Inland Fisheries. Tax on trailer is 3% and boat tax is 2%. I told the clerk I paid one price for both. She said most people put a higher value on the boat and less on the trailer to save on the tax! Fine with me :)

 

L.C.Gray

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Texas cracked down on people lying on purchase prices trying to beat down the 6.25% sales tax on vehicle sales a few years ago. They have some form of working from the book value, but it's never come into play with me.

I bought my '73 way way cheap, paid with a check and took a copy of the check with the car's description noted on the memo line of the check. Was never questioned and happily payed my $37.50 in sales tax.

 

Don65Stang

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Don't forget the ad valorem money extraction from residents that happens each year if talking about how we all get screwed via the DMV. I just paid $600 for the new $0.10 stickers yesterday.

 
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I have been waiting for over 2 months to get my title from DMV after they came and inspected VIN for being stolen. They sent me a letter say I would have to get the car inspected for theft before I can get the title. Guess they don't pay attention.

So I went ahead and went to Allstate to add to the insurance and they said just go to Hagerty cheaper and they actually did in in their office. $25,000 coverage was a little over $250 for the year. So now I go back to DMV next week to get the tag and I did get a BOS with the car always do. I will see what they want to hit me for I paid $7,200 for the 73 vert. I think Hagerty had like $18,600 for an average. At least there is no inspection required if over 35 years old.

One odd thing I bought lately was a car dolly. Got a great one with brakes and hot dip galvanized that was used. When I went to get it I took standard BOS form and we soon found out there is not a serial number on the dolly. Talk about something you could never track stolen. Even contacted the manufacturer and they said no there was none. Since no tag is required no VIN is issued. At one time there was a sticker with a number from the plant but that was long gone. Might be stolen for all I know.

 

will e

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When I bought my 73 Mach 1 back in 1980 for $1800 I paid zero in taxes.

When I bought my 73 Mustang Convertible in 1984 for $3500 I paid zero in taxes.

When I bought my 2008 Sportrac used from New Mexico and registered it here I paid zero in taxes.

In Arizona a private used car sale is not taxed. If you buy used from a dealer it is. Of course new car purchases are taxed as well. The tax for either is the current sales tax which runs about 8.x% depending on what city/county.

I don't see any justification in taxing a private used car sale (or anything for that matter).

 

justford

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Here in Kentucky if you put historic/antique tags on vehicles 25 years and older, you only have to pay taxes on 100.00 no matter the purchase price. Sooner or later the DMV is going to figure out how much money the state is losing and make some changes. Until then, historic tags it is!!

 

Cobra2572

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The drama is over. I received a bill of sale from the previous owner and made the trip back to the DMV. I had to have insurance on the car whether driven or not (or lie about it on the checklist or pay a no insurance waiver fee) so I insured the car on Monday, transferred the title Tuesday morning and cancelled the insurance when I got home.

 

mach1000

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NYS taxes run approx 7% - 9% depending on local county % added to the base state. A receipt of sale has always been required so the state can decide how much to take from you in addition to whatever you paid for the vehicle. It's amazing how much they can make off these cars since they take their percentage each and every time its sold.

It's not unheard of for a buyer to request two receipts from private seller. One for the actual price paid and one for the DMV. As long as you don't get too far out of line on the value you are usually ok.
Was just going to post that here in Oneida County NY the sales tax is 8.75%! So yes I've heard .... aahhuuummm....:whistling: the DMV gets a bill of sale sometimes with a slight price adjustment made.

 

mach1000

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When I bought my 73 Mach 1 back in 1980 for $1800 I paid zero in taxes.

When I bought my 73 Mustang Convertible in 1984 for $3500 I paid zero in taxes.

When I bought my 2008 Sportrac used from New Mexico and registered it here I paid zero in taxes.

In Arizona a private used car sale is not taxed. If you buy used from a dealer it is. Of course new car purchases are taxed as well. The tax for either is the current sales tax which runs about 8.x% depending on what city/county.

I don't see any justification in taxing a private used car sale (or anything for that matter).
I'm voting for YOU for president. I feel the same way but unfortunately those that make the tax laws just seem to need more and more of our money....

 

Qcode351mach

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It's all a big money grab..any which way they can. The real issue is that they have no clue how to use the nada GUIDE There are lots of foot notes and guidelines for USING the book right at the front. The way they do it is to assume every car is a 10 and in perfect flawless condition. When I fought the value they put on one my cars at the tax collectors office their answer was we can't inspect every car for value..Luckily I'm a licensed appraiser so I was able to present my license and tell them "I know that's why I already did it for you" So they adjusted to my numbers..Big deal I'm one out of thousands they just make it up 10 times over on the others.

 

Cobra2572

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The one thing that I did question but did not dispute (intuition tells me that this would be a bad idea while standing at a DMV window) was the weight. The clerk looked it up and I was guessing in the neighborhood of 3600-3700#. She tells me it's 2750 or something like that. I figure she mixed it up with a Mustang ll or they compensated for the missing sheet metal consumed by rust.

 

justford

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One of our state legislators tried to introduce a bill that in theory insured the driver. So it didn't matter how many vehicles you owned as you were only driving one at a time. Needless to say, it never made it to a vote as the insurance company lobbyists made their presence felt.

 
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