Sales tax on used cars - Page 4 - LotusTalk - The Lotus Cars Community
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post #61 of 90 (permalink) Old 07-30-2010, 08:07 PM
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Where are you going to buy the car??? That makes a big difference. If you bring the car over and it's already in your name with title, they should NOT charge you sales tax since you already bought it. You will have to pay registration etc.

If you are buying the car in the US and want to register it in NY, you will have to pay sales tax as well as the registration etc. Even if you buy the car out of state (but in the US), you will have to pay the NY state sales tax.

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post #62 of 90 (permalink) Old 08-03-2010, 04:14 PM
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You would think after all of these years and many cars i would know this, however, say I take my Viper down to Houston for a trade in (hopefully) and they value it at 45K. Say the Lotus is purchased for 50K, thus a difference of 5K. Would the sales tax be on the perceived value of the Lotus, the purchase price of the car minus the trade in. Many many questions I'll need to ask if I can pull the trigger.
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post #63 of 90 (permalink) Old 08-03-2010, 04:23 PM
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Freena: yes, you would pay the tax value on the difference between the two as you have a capital asset (the Viper) that is reducing the value of the Lotus. Tax here in Texas is normally 6.25%, but I think you have to pay the tax where you register the car at, so OK rules may be different as you are a bunch of crazy Okies But, you should only have to pay the difference as you can show on the sales sheet. Should.

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post #64 of 90 (permalink) Old 08-03-2010, 04:40 PM
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I actually used to live in Houston, hated leaving, but went to the darkside OU and stayed up here. How is that dealer Star Motorcar there, they have a few I was looking at.
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post #65 of 90 (permalink) Old 08-03-2010, 06:27 PM
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Cant you "gift" a car or any other item? In california I believe you can gift a person $13,000 two times a year, or a gift of up to a million dollars as a one time deal. If the seller put 'gift' under the price, then there is no tax to pay. Risky move though.

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post #66 of 90 (permalink) Old 08-04-2010, 07:34 AM
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Quote:
Originally Posted by andrewgotanelise View Post
Cant you "gift" a car or any other item? In california I believe you can gift a person $13,000 two times a year, or a gift of up to a million dollars as a one time deal. If the seller put 'gift' under the price, then there is no tax to pay. Risky move though.
In Texas, you must be a close relative or a non-profit organization to receive a gift like that. You still have to pay $10 tax.

Here's an FAQ for Texas title issues:
Title FAQs

Gifts

Effective September 1, 2009, when a motor vehicle is transferred as a result of a gift, the title application must be accompanied by the Texas Comptroller of Public Accounts Form 14-317, Affidavit of Motor Vehicle Gift Transfer. The donor and recipient must both sign the affidavit and title application. The "$10 Gift Tax" only applies to a person who receives the vehicle from a:

Spouse
Parent or Stepparent
Grandparent or Grandchild
Child or Stepchild
Sibling
Guardian
A decedentís estate
A vehicle donated to or given by a Nonprofit IRC Sec. 501(c)(3)
On the title application, the recipient who qualifies should check the "$10 Gift Tax - Affidavit required. Use Comptroller Form 14-317." box found in Section 21. The recipient will have to provide proof of auto insurance at the county tax office to register the vehicle.
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post #67 of 90 (permalink) Old 08-04-2010, 09:14 AM
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In NY, especially with older cars, we just come up with a low, yet believable amount. Dont put $2000. Use $2050 instaed. Looks more legit.

Honestly, I dont think the DMV girls give a rats a$$ anyways. Unless you are trying to pass off a 2009 Lambo Gallardo for $5K or something you shouldnt have any trouble.

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post #68 of 90 (permalink) Old 08-04-2010, 09:41 AM
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in cali a "gift" can be from anyone. If the DMV wants to check it out then they can because they get the name & info on the previous registered owner. I will say that I have heard they dont check if said previous owner resides in another state. Ahem. But you DO need to write in the market value of the "gift" on their forms, but if $$ didnt actually change hands then no use tax is due. Of course you would need to have your ducks in a row with the seller so if they DID check, they will verify yes indeed they are your 2nd cousin and gave you the car for free. It actually may suit them to do so as then there is a cover for them if they happen to "ahem" not claim the income from selling the car to their tax man. It can work out rather smoothly.

This is what I have heard anyway.

I suppose they could investigate your and the sellers bank accts looking for a big withdrawl/deposit combo if they really wanted to but that would take a lot of time on their part, probably involving lawyers and costing more $$ to the state than the amount of the tax. And the fact the bureaucrats in Sac Town could not find their ass with both hands probably does not hurt either.

just my 2 cents

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post #69 of 90 (permalink) Old 08-04-2010, 12:57 PM
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Star Motor cars is still here! I was there when I was shopping for my Elise, they have a few 'new' Lotus' that are several years old still on the lot, so good prices for a older car still under full warranty. We moved here from Dallas a few years back and I hate it here Too hot, bad drivers, crappy roads. So I'm buying a small, low-riding car with sub-standard AC to make myself happy...

That's the thing about Texas which is odd, our tax office is the one that actually handles registration and titles, not our DMV. Our DMV is too busy with drivers licenses and immigrant registrations. The tax office is real stingy, especially about gifts. Like what rogerawong said, it had better be a relative and be ready to prove it. We gave my brother-in-law an older infiniti and the tax office wanted to see our wedding certificate!

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post #70 of 90 (permalink) Old 12-03-2010, 06:38 PM
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I don't think the CA DMV gives a sh*t. They barely have any desire to process your papers much less open an investigation.
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post #71 of 90 (permalink) Old 07-27-2012, 07:07 AM
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There's no sales tax in Oregon. Get a mailbox or rental in Oregon. Get some bills re-directed there. Get a OR license. Buy car, register in OR, transfer to NY. BAM, you saved 2k. Maybe. I don't know if that works.

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post #72 of 90 (permalink) Old 07-27-2012, 08:28 AM
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Every location has their own laws.

Massachusetts is very, very clear when you go to register:

First, they won't find Lotus in their car list. It's listed under "Vintage Cars".

Next, they WILL find a value in their system. The way Massachusetts values cars is going to be based on this, not what you paid unless that is more. In my case, a year ago, I paid $30k and they valued it at $29,700, so it was pretty accurate. Where it won't be accurate is if you have something that's salvaged or for restoration. They still use their value. I bought a 51 Ford pickup for $300 some years ago to restore. It was a 1 owner vehicle and had been taken off the road in 1963 to use only on the farm. They valued it at $3500 and that's what I had to pay tax on. I filed for an abatement with full pictures of the truck with all its rust, parts missing and need to replace every piece of glass on it. My abatement was rejected.

Ok, for the good news. If you buy a vehicle in Mass from a direct relative, you file a form (the seller does) and you pay zero tax. I bought my mom's car and this indeed worked. The loop hole is if your relative bought the car in a state with no sales tax like New Hampshire, you end up getting the car on the road without paying any sales tax. They don't care what you paid your relative for the car. I kidded with my mom that she should move to NH and buy a Lamborghini.
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post #73 of 90 (permalink) Old 07-27-2012, 12:56 PM
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Originally Posted by antinym View Post
There's no sales tax in Oregon. Get a mailbox or rental in Oregon. Get some bills re-directed there. Get a OR license. Buy car, register in OR, transfer to NY. BAM, you saved 2k. Maybe. I don't know if that works..
You have to:
fraudulently state that you are an Oregon resident.
drive to Oregon every year to re-register your car.
wilfully ignore the law that says you must obtain a NY driver's license if you are a resident of NY.

the moment you attempt to register the car in NY, NY will ask for you to pay the difference of the sales tax NY wants to charge vs. the sales tax you paid in Oregon. Which means you're on the hook for the full NY sales tax. http://www.dmv.ny.gov/register.htm

Last edited by metrocube; 07-27-2012 at 01:06 PM.
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post #74 of 90 (permalink) Old 07-27-2012, 06:20 PM
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Originally Posted by antinym View Post
There's no sales tax in Oregon. Get a mailbox or rental in Oregon. Get some bills re-directed there. Get a OR license. Buy car, register in OR, transfer to NY. BAM, you saved 2k. Maybe. I don't know if that works.

and as always, my opinions is worth what you paid for it.
I think that depends on where you are. I have had family members use my address in Montana to register cars (No sales tax) for 6 months then transfer it to the state they live in and not have to pay tax on them.

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post #75 of 90 (permalink) Old 07-27-2012, 06:21 PM
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Originally Posted by metrocube View Post
You have to:
fraudulently state that you are an Oregon resident.
drive to Oregon every year to re-register your car.
wilfully ignore the law that says you must obtain a NY driver's license if you are a resident of NY.

the moment you attempt to register the car in NY, NY will ask for you to pay the difference of the sales tax NY wants to charge vs. the sales tax you paid in Oregon. Which means you're on the hook for the full NY sales tax. NYS DMV - Vehicle Registration and Certificate of Title
No you would only have to have it registered for 6 months then you can transfer it to another state.

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post #76 of 90 (permalink) Old 07-28-2012, 03:24 AM
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if i remember right, i think for believe for IL, if the car is under $15k, they use the list of car values to tax you, but if it is over $15k, they use your sale price
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post #77 of 90 (permalink) Old 07-30-2012, 09:11 AM
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Don't know about other states but CA does not check at all, not even in extreme cases. I had a buddy buy a BMW out of state for ~$50,000. Bill of sale said $5000. The car was even inspected at the DMV. He had a whole elaborate story about how it was damaged and he fixed it himself, blah blah blah.... he was in and out within an hour including the inspection and nobody even raised an eyebrow.

CA can't even get their budget straight. I doubt we have the resources to track down and prosecute everyone who is doing this.

Not advocating, just saying.
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post #78 of 90 (permalink) Old 08-16-2012, 06:00 PM
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My friend had his GTR "gifted" to him. $0 sales tax.
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post #79 of 90 (permalink) Old 08-16-2012, 07:26 PM
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I thought about working the system, but in the end decided it wasn't worth it to save $1200 on my elise.
The tax charged on the car here in IL is way lower than the regular sales tax!!
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post #80 of 90 (permalink) Old 08-28-2012, 02:17 PM
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Texas is on transaction value - any trade in value. Texas is state 6.25% rate only, not local county/city surcharges of up to 2%

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