bl^5

It used to be that when registering a car that you bought from a private seller, you would have to pay sales tax based on the amount you paid the seller for the car. The funny thing was the amount you paid for the car, was the amount you told them you paid for the car so even if you paid $10K for a used car from a private seller, you could tell them you paid $5K and pay half the tax you were supposed to pay.

Well, a new law was passed that allows the State to assess the taxabled value based on %80 of the blue book value of the car. It is honestly a smart idea by the state, but I will no longer win on used car purchases... DAMNIT!

KaMLuNg

iTrader: (5)

im pretty sure there is a stipulation cause... for example if you buy the vehicle that has substantial car damage for less than book value because you would have to be repairing it yourself, you would need to provide proof such as pictures of the vehicle or an estimate from a body shop... etc....

F23A4

LINK

Too bad a similar tax law does not apply to new car purchases where the buyer usually gets hosed on the purchase price (vs. book value).

mrdeeno

I don't understand what you mean by that?

If this DID apply to new car purchases, buyers would be hosed even MORE. the "book value" of a new car is the MSRP. You buy a car below MSRP. If the law applied, you'd have to pay taxes based on the higher MSRP rather than the actual sales price.

mrdeeno

They've had something similar in PA, but without needing to get an appraisal or anything. It's just a sworn statement that the reason the price is lower than book price is true.

I think its a stupid law. They already collected sales tax on the full selling price of the car when it was new. After that, they should not be basing sales tax on what something is worth. first it's cars, next think you know it's everything else.

What next? I buy my kids a computer, pay sales tax on it, and then the state goes after my kids for sales tax based on the "book value" of the "gift"?