sales tax Q

Not Income Tax,
The sales tax on vehicles while buying AND/OR selling used bikes, cars, boats at your local DMV office, are you or the stranger buying your stuff writing in a lower price??

I'm curious how widespread this practice is.

 

Re: TAX CHEAT

i bought mine so cheap i didnt have to lie.
Love the seca Time... it looks quick

 

Re: TAX CHEAT

I tend to buy at prices well below book value so I never BS the tax man. If you pay below what the state determines the item is worth they will investigate and possibly send you a bill for what they think the item is worth.

I always want to feel safe that should they investigate the transaction that the stranger I purchased from will provide the same answers that I provided the State. The last thing I want to do is give the state reason to doubt my integrity. Thinking they could make life pretty miserable.

So far I have never had to pay additional tax based on their investigation. I have had them investigate the transaction and been required to provide additional information but honesty has so far worked out well.

I bought my F150 pickup for $1300 off Craigslist. The value for a comparable pickup with a good transmission was about $8500. I had the tranny rebuilt for $1395 and did the work myself. I was able to prove that the rig needed work and only paid the tax on the $1300. At 9.5% excise tax I saved over half what the rebuild cost.

 

Re: TAX CHEAT

I will gladly, and do pay what I think is reasonable.
When I feel any gov, fed or state is being unreasonable
then they can kiss my @$$.
As far as fed/state taxes I pay the MAX per paycheck. That keeps
me square with them.
BUT... I think we all are seeing a little more " Uncle Sam Wants Your's"
lately and I would never chide someone for trying to hang on to as
much money as they can.

 

Re: TAX CHEAT

I'm like BillB, I've been buying projects so cheap that sales tax is only a couple of bucks. But lets just say that I didn't mention that when I was titling my XJ650 Turbo Seca (big project, and honestly paid $250 for it), I didn't bother to point out on the woman's computer screen that the XJ650LJ was the same thing in here NADA guides, so she charged me the tax on the $250. Which I think is more honest than charging me tax on hundreds more than I paid, and I don't think MA give a darn if you bought a project bike that is worth (in the free market) well less than the NADA guide price.

 

Re: TAX CHEAT

I don't know what the cut-off age is in Nova Scotia, but my 1982 was too old to be subject to tax. I did get a raised eyebrow from the DMV clerk when I honestly admitted to paying $150 more than the PO did only a month previous (I happened to know what happened in previous transaction). But he spent $200 getting a new back tire and passing the safety inspection, so I still think I got a good deal.
-D.

 

Re: TAX CHEAT

my math teacher told everyone to buy the item for $50 and pay the rest of the amount for the pen he used to sign the title... aka, for the 600 bike- pay 50 for it and $550 for the pen...


but i've never had the full amount on the title

 

Re: TAX CHEAT

It's funny,I've never heard of anyone NOT fibbing in this case,yet until my last couple of transactions,I always gave the full amount,simply because of being an honest person.

What,you might ask,has changed on my last couple of purchases? Have I suddenly decided to become a no good crook?No,it just dawned on me how wrong it is to pay sales tax on something used.

When you buy a house or vehicle,EVERY TIME it's sold,sales tax is paid on it.When you buy anything else I can think of,you pay sales tax on it when it's new,and I can live with that idea,but when you buy it used,no tax,which seems proper and just to me.

Can you imagine how rediculous it'd be if the gov't demanded we pay tax on everything we buy at yard sales,or from craigslist/ebay/etc?!?! So,I ask you....what's the difference between buying used items from private parties at yard sales/craigslist/ebay/etc,and buying used items (houses and vehicles) from private parties?

That said,I've went to the extreme of lying by telling the DMV I paid MORE than I actually did,because I figured they'd never believe what a good deal I got on a few occasions.So,ironically,in order to keep them from thinking I was lying about what I paid,I had to lie and pay more tax than what was due.

I even had a few times when I had to do that because I was GIVEN vehicles for free,so I had to lie and make up a figure I thought was believable to say that I paid for it.

Several years ago the state changed the law so you can't claim free vehicles,since naturally everybody was saying their cars were freebies to get out of paying the tax

 

Re: TAX CHEAT

You took the words right out of my mouth tinytim...Paying taxes on a new items I'm good with, if it's used I take the fifth. Feds even want you to claim the sold item as income in many cases so they can get thier share of that too. Feds have to raise a lot of cash to take care of all the poor people that despite being poor they still have cell phones, internet, cable, car...no insurance tough, that $h!t$ expensive.

 

Re: TAX CHEAT

you think just paying the tax man 1 time is bad here in georgia we pay state tax on what they think the vehicle is worth every year. 1 of my vehicles is a 2003 mountaineer i pay $150 a year tax plus the tag .when you own several vehicles its rough. but we also pay state income tax besides federal ugh

 

Re: TAX CHEAT

I guess we got all upset for nothing back in the
1700's.
Wasted all that good tea and all.

 

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That was just about paying 1% tax! Imagine if they demanded back then the taxes we pay now. 8O

 

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Michigan charges 6% sales tax and I have no problem paying $24 for a $400 bike, the State is so strapped for cash right now.

 

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Our state charges over 8% and go's by kelly blue book if
they think you have't payed what they think you should have.

If you dare to buy out of state the tax can be in the hundreds
just to transer to an AZ plate!

If that wasn't enough we can only buy/sell 6 bikes a year,
otherwise you need a dealers licence.
That would suck if you had a large family.

 

Re: TAX CHEAT

It is ! - - and I paid alot for the out of state transfer and full tax on that one, but sometimes I can't "remember" what I paid for a vehicle just 3 hours later at the tag office :lol:

 

Re: TAX CHEAT

out here. they've gone to a property based age fee. have no idea how that works. but i paid a FULL BEN to get my bike licensed.

18 months ago i got my 97 cavaleir licensed for $57. last year renewal was $75. ONE FULL BEN to license my 81 motorcycle.

my income has dropped 66 percent in the last 2 years but the cost of living has practically doubled.

and the govt can't figure out why we have no savings anymore.

my kz900 was a birthday gift. so i got it for free. but was charged sales tax on book value of $1000.

 

Re: TAX CHEAT

I don't think taxing used motorcycles or cars is fair in any case since it was taxed once when it was new. I can see a transfer tax but that should be it. I know some states work it that way. Our licence plates are based off of value also. This State double dips us all the time.

MN

 

Re: TAX CHEAT

I used to be negotiable until I wound up in federal court twice...
Never again, full price every time and don't take anyone's word that they "will take care of it for you". Walk that bill of sale into your DMV ASAP.