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post #21 of 90 (permalink) Old 07-24-2007, 09:18 AM
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Quote:
Originally Posted by nvrblu
Tax laws vary from state to state. In Arizona, for example, there is no sales tax on vehicles in a private party transaction. However, as I understand it, if you live in California and buy a used car through a private transaction in Arizona, you'll end up paying a tax when you register the car in California. I'm not familiar with tax laws in other states.

Yes...they do vary and it really depends on where you hang your hat. The post where I said about sales tax contacting the seller...that is in NY. I dont know if they do that in other states

Tony Vaccaro
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post #22 of 90 (permalink) Old 07-24-2007, 11:46 AM
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Quote:
Originally Posted by JoshS
Of course you bought it with a damaged front clam, so it was $12,000 cheaper and you did the repairs yourself so there's no receipt from an autobody shop.
Quote:
Originally Posted by shokwaves
Just write the purchase price as 20K and pay tax based on it when you register the car under your name.
Yep. Nothing like moving to a new country and committing fraud to save a few bucks. Have you ever noticed the wording on the form that you use to declare what you paid for the car? But the wrong value down there, and you could be facing charges for fraud if they decide to check it out.

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Originally Posted by 25psi_Elise_Killer
heh, expect to pay around $500/month to rent a parking spot in Manhattan
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Originally Posted by E.D.
Yes, I expect parking in NYC to be even a bigger/costlier problem than here in Amsterdam (I've got tons of experience of circling around for 30-45 minutes just to find a free parking spot). I' am aware of the problem, we'll see if I can work something out with my employer.
This was my first thought about someone buying a car in NYC, but it looks like you already thought about it.

Quote:
Originally Posted by E.D.
Thanks for answering my question, just one detail remaining: do I need to pay sales based on the original purchase price (which is on the title?) paid by the original owner who bought it as a new car, or is it based on the lower price I will pay for a used car?
Price you paid, i.e. the current value at time of purchase.

Quote:
The whole procedure is a good example what a good lobby can do: when I buy some used items from an individual (furniture or whatsoever): I don't pay sales tax (don't tell me you even need to pay sales tax for a transaction like this, how can the state ever know when these transactions happen?). But when I buy a used item and item just happens to be a car: sales tax! While the nature of the transaction is identical: individual buys used stuff from individual.
Technically, you are supposed to pay the taxes on such items (and the seller is supposed to declare the income from the transaction). The difference is that such transactions are not tracked so there is no mechanism to make you pay.

In the case of a car, you have to register the car to be able to drive it. They can track the transaction and make you pay (or you don't get the registration). So far, no one is licensing your furniture...




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post #23 of 90 (permalink) Old 07-24-2007, 11:54 AM
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Tax in NY State is 7.37 percent. Might be a little higher in NYC. You pay what is listed on the sales receipt for the car. You can prob ask the seller to lower it a little to save you some money but yes that is illegal. What are they gonna do, deport you? We can't even deport all the illegal immigrants, doubt they're gonna kick out the legal ones.
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post #24 of 90 (permalink) Old 07-26-2007, 05:27 AM
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Here is the current "sales and use tax" rates for New York state:
http://www.tax.state.ny.us/pdf/publi...pub718_507.pdf (from official NY state government site: http://www.tax.state.ny.us/pubs_and_...sales_pubs.htm )

NYC (Manhattan) is 8 3/8% or 8.375%

Also see this government website for other sales tax-related information:
http://www.nyc.gov/html/dof/html/bus...ys_sales.shtml

(for example, recently they got rid of sales tax on clothing/footwear priced $110 or under. also, in New York (and many other states in the USA) there is no sales tax on food items bought at a grocery store ("food for home consumption") (so you pay tax on food at a restaurant/bar/caterer because that is like a value-added food/service). http://www.cbpp.org/1-13-03sfp.htm

I am not a tax expert. This is my knowledge based on being a consumer/resident of NYC / New York State.

Welcome to NYC!

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post #25 of 90 (permalink) Old 07-26-2007, 05:36 AM
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Quote:
Originally Posted by mpsalm
Tax in NY State is 7.37 percent.

It depends on your county of residence for car purchases. Here in upstate it is 8.75 where i live. Dont worry...when you register the car they will tell you the right amount!

If I register a car in another county because the lines are shorter there...even though that county has a lower rate...I still pay based on where I live.

Tony Vaccaro
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post #26 of 90 (permalink) Old 07-26-2007, 05:55 AM
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Quote:
Originally Posted by TimMullen
Yep. Nothing like moving to a new country and committing fraud to save a few bucks. Have you ever noticed the wording on the form that you use to declare what you paid for the car? But the wrong value down there, and you could be facing charges for fraud if they decide to check it out.


.
I haven't bought a used car in 30 years, and was half joking though most people in CA do under report as they just don't check out here for some reason. But, out of idle curiosty, have you ever sold a used car (appliance or anything) to a private party and reported the sale as income on your tax return (even if you took a loss it has to be reported). Have you ever hired a gardener or private person to do work in your home or yard, or baby sitter and paid the appropriate taxes that employers have to pay (it is the law and politicians have been nailed for these transgressions). And, perhaps you haven't Tim, I'm just trying to point out, though all of these are wrong which you are absolutely right in pointing out, some of them have become such common practice its unbelievable and where do you draw the line?

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post #27 of 90 (permalink) Old 07-26-2007, 07:19 AM
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Well, I can't speak for New York sales tax as my elise is registered and kept at my house in New Jersey... That said, in NJ when you register a used car YOU tell the Department of Motor Vehicles the purchased price. Do with that what you will... but really, do you think someone who sits behind a counter all day processing paperwork is really going to question what value you claim?

I went the honest road and declared the actual value... but honestly afterwards I realized that this lady helping me wouldn't have blinked an eye if i told her i bought it for $5k. She didn't even know (or care) what a Lotus is. She had no interest or concern whatsoever - it's just another paper to file...

Regarding parking in New York City, I park my daily driver in a garage in Brooklyn (where i live during the week) for $175/month. Might be steep for the rest of the country but that's a steal for NYC.

Good luck!
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post #28 of 90 (permalink) Old 07-26-2007, 07:31 AM
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Quote:
Originally Posted by JoshS
have you ever sold a used car (appliance or anything) to a private party and reported the sale as income on your tax return <...>
I, like everyone else, have not reported everything. Heck, I even enjoy buying things mail order and off the internet without paying sales tax (did you know that you are supposed to report that to your state - if they have a sales tax - and pay the tax?).

Everyone does it, and no one really checks.

But to do it on a large scale, on a form that you are signing that states "under penalty of perjury", in a government office, is not a good idea. And your chances of being investigated from claiming that you bought a $3,000 Lotus Elise is far higher than for not paying the $0.53 cents of sales tax on the last mail order package. You would be signing it in front of someone that (hopefully) isn't completely ignorant, and will start being suspisious...




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I love being married. It's so great to find that one person that you want to annoy for the rest of your life. - Rita Rudner


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post #29 of 90 (permalink) Old 07-26-2007, 08:05 AM
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Quote:
Originally Posted by pauli33
but really, do you think someone who sits behind a counter all day processing paperwork is really going to question what value you claim?

I went the honest road and declared the actual value... but honestly afterwards I realized that this lady helping me wouldn't have blinked an eye if i told her i bought it for $5k. She didn't even know (or care) what a Lotus is. She had no interest or concern whatsoever - it's just another paper to file...

Good luck!

The do it all the time here in NY. If your claim seems low...they take out the book. Check it. Question it.

Tony Vaccaro
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post #30 of 90 (permalink) Old 07-26-2007, 08:19 AM
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Sales tax???

I never understood this. When you buy a new car, tax is paid on the transaction. Why/how can tax be collected when the item is resold? The tax has already been paid. What does it have to do with the registration? The reg fee is for plates ect...
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post #31 of 90 (permalink) Old 07-26-2007, 08:23 AM
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Originally Posted by eman
I never understood this. When you buy a new car, tax is paid on the transaction. Why/how can tax be collected when the item is resold? The tax has already been paid. What does it have to do with the registration? The reg fee is for plates ect...
The state has to make money some way. This one only nails the people that are already "excited" about buying something, so they just pay it without complaining (too much)...




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I love being married. It's so great to find that one person that you want to annoy for the rest of your life. - Rita Rudner


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post #32 of 90 (permalink) Old 07-26-2007, 08:24 AM
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Quote:
Originally Posted by tvacc
If you claim what sales tax feels is a undervalued amount, they will either tell you to pay "their" value or send the seller a letter demanding to know the sales price under penalty of sales tax evasion.

Unless it is your brother or sister most wont take the chance for a total stranger.

Like I said...It is just not worth it.
Agreed, it is just not worth it...

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post #33 of 90 (permalink) Old 07-26-2007, 09:32 AM
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Quote:
Originally Posted by TimMullen
I, like everyone else, have not reported everything. Heck, I even enjoy buying things mail order and off the internet without paying sales tax (did you know that you are supposed to report that to your state - if they have a sales tax - and pay the tax?)....
You are correct sir. But, it's called a use tax, not a sales tax if the sale occurred outside the state.

Quote:
Originally Posted by TimMullen
Everyone does it, and no one really checks.

But to do it on a large scale, on a form that you are signing that states "under penalty of perjury", in a government office, is not a good idea. And your chances of being investigated from claiming that you bought a $3,000 Lotus Elise is far higher than for not paying the $0.53 cents of sales tax on the last mail order package. You would be signing it in front of someone that (hopefully) isn't completely ignorant, and will start being suspisious...
Just yanking your chain, but initially you said to "save a few Bucks" and now that just became do it on a "large scale." Luckily, here in CA we don't do it in a gov't office and you make out your own bill of sale on a piece of toilet paper if you like (tough to prosecute). I just sold three vehicles last year (AND BOUGHT A LOTUS) and don't remember seeing under penalty of perjury stuff. But, I didn't have to fill it out except for the mileage, the buyer fills in the price. You lived out here I'm sure you know the deal. One of few perks living out here.

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post #34 of 90 (permalink) Old 07-26-2007, 10:28 AM
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For parking rates (they really vary by neighborhood and amenities (24 hour versus limited hours), check this site:

http://nyc.bestparking.com/

In Midtown East where I live, average is around $500/mo. Also, the Lotus *may* be considered an "exotic" and there is a surcharge for that on top of the regular rate. (Call the garage and ask; normally "exotics" are RR, Bentley, Ferrari, Maserati, Lambo, Maybach, etc.-- Minivans/SUVs have their own surcharge). Then there is the 8% NYC parking tax. Which for a monthly parking customer who lives and has the car registered in NYC, is exempt.

Also, parking garages are "valet." If you want to park it yourself, we call it "Park & Lock" and usually the spots are is prominately located right on the entrace of the garage (which is why you normally see so many "exotic" cars parked in view when you enter a garage, some covered with a car cover). Again, there is an extra surcharge for this privilege as well. Some garages have year-long waiting lists for the Park & Lock spots. Actually, some garages have waiting lists for "normal" monthly parking spots too. It's pretty insane.

Also, the city wants to restrict the # of cars coming into the city and has banned any new developments of parking garages/spaces/lots. Demand increasing, supply fixed... Prices will go up...

Just so you know, almost everyone I know who lives in the city doesn't own or park a car. It's pretty expensive, as you can see, and using the subway/buses to get around is pretty quick. Or walking.

If you can get your employer to front the parking fees, then cheers to you! That's a nice perk to have!

Cheers!

Mike | Manhattan/LI, NY, USA
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post #35 of 90 (permalink) Old 07-26-2007, 10:51 AM
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Quote:
Originally Posted by TimMullen
The state has to make money some way. This one only nails the people that are already "excited" about buying something, so they just pay it without complaining (too much)...

The state has to make money (unconstitutionally) because they overspend and waste on useless crap and programs. Even income tax is unconstitutional. Never understood why people just roll over and accept it.
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post #36 of 90 (permalink) Old 07-26-2007, 11:02 AM
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Quote:
Originally Posted by nvrblu
Tax laws vary from state to state. In Arizona, for example, there is no sales tax on vehicles in a private party transaction. However, as I understand it, if you live in California and buy a used car through a private transaction in Arizona, you'll end up paying a tax when you register the car in California. I'm not familiar with tax laws in other states.
That was my exact case.

I've heard people negotiate 2 separate prices - 1 price for the car and one for the accessories (hard top, soft top, etc.). Since the tops can be attributed a significant value, this may be a good way to legitimately reduce your actual sales price for the car.

**disclaimer** - I am not a tax professional and I am not familiar with the tax laws in this case. Please do not rely upon this post for tax advice.
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post #37 of 90 (permalink) Old 07-26-2007, 11:41 AM
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Originally Posted by Brennon
The state has to make money (unconstitutionally) because they overspend and waste on useless crap and programs. Even income tax is unconstitutional. Never understood why people just roll over and accept it.
Article I, Section 8 of the US Constitution:

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States...

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post #38 of 90 (permalink) Old 07-26-2007, 11:55 AM
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Article I, Section 8 of the US Constitution:

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States...

ed
Right...i'm not against taxation.

Income tax, however, is based on the presumption that govvernment owns your money. Whether they want to tax it 95% or 5%, government can make that ruling. Taxation should be based upon what you spend, not what you earn.
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post #39 of 90 (permalink) Old 07-26-2007, 12:02 PM
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The Constitution doesn't say anything about that one way or another.

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post #40 of 90 (permalink) Old 07-26-2007, 12:14 PM
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Originally Posted by EdHahn
The Constitution doesn't say anything about that one way or another.

ed
In 1895 the supreme court decided that the income tax was unconstitutional because it was not apportioned among the states in conformity with the Constitution. Additionally, the 16th ammendment was never properly ratified (which unfortunately has never held up in court) allowing the the federal government to tax income.
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