I think this is pretty cool, 10+ year old cars can avoid sales tax

http://hosted.ap.org/dynamic/stories/M/MO_XGR_OLDER_CARS_MOOL-?SITE=MOCAP&SECTION=STATE&TEMPLATE=DEFAULT

In MO, that is a good point.

it's good to see that some other states are finally starting to catch onto how MN has been doing it forever...

There's no sales tax on any private automobile sales in the entire state of Nevada...

Here in Mass that will never fly. They now base the tax on what the state sais the car is worth. Does not matter If it is a smoldering pile of melted plastic and metal. YOU GET TAXED AS IF IT IS A GOOD RUNNING CAR. Really sucks!!!!

Hay doesn't this fly in the face of the whole cash for clunkers thing? I mean they wanted us to trade in all our older cars and have them crushed for new ones that supposedly get better millage. Now they are coming up with incentives for us to purchase old cars. Proof positive that law makers can have it both ways.

I could care less about the vehicle excise taxes, the totally berkeleyed up one here in Indiana is the "Personal Property" taxes we've been getting hammered with on the farm. Now that is multiple taxation of the same item that you can't even deduct off of. Thankfully it appears our new Gov is working to get rid of it.

dean1484 wrote: supposedly get better millage.

Supposedly? How about objectively?

dean1484 wrote: Proof positive that law makers can have it both ways.

It's almost like we have state governments that work independently of the federal government.

hmm... I would never have to pay tax on my cars again if NJ did that

dean1484 wrote: Here in Mass that will never fly. They now base the tax on what the state sais the car is worth. Does not matter If it is a smoldering pile of melted plastic and metal. YOU GET TAXED AS IF IT IS A GOOD RUNNING CAR. Really sucks!!!! Hay doesn't this fly in the face of the whole cash for clunkers thing? I mean they wanted us to trade in all our older cars and have them crushed for new ones that supposedly get better millage. Now they are coming up with incentives for us to purchase old cars. Proof positive that law makers can have it both ways.

NC the same … but you can appeal … I won my appeal on the old beat up Suby I owned, bought it for $1600

it had 200k+ miles … hail damage (lots of it ) wreck damage .. the bumpers were held on with zip ties … the state said it was worth $3500 … I got it appraised as a $500 car, and the state went along with it …

sold it 7 yrs later for $700 and could easily have gotten $1000

Illinois would tax the taxes if they could.

Michigan currently has sales tax on used cars. I suspect some people don't correctly report the actual amount paid on private sales.

In reply to fujioko:

I always leave that box blank when filling out a title.

dean1484 wrote: they are coming up with incentives for us to purchase old cars. Proof positive that law makers can have it both ways.

It appears that this is a Republican that is trying to help out the poor who can't afford newer cars. Don't kick a man when he is down sort of thing. I like the idea.

In ohio we just write in the purchase price of the car as $1. That way we only pay like 7 cents.

jere wrote: In ohio we just write in the purchase price of the car as $1. That way we only pay like 7 cents.

In California if you did that the CHP / Tax board would show up at your door.

What would they do if the purchase price was really $1?

In MO, the minimum you can put as the sales price is $100. Dont know why.

Appleseed wrote: What would they do if the purchase price was really $1?

i was once given a beat up 81 Ford F250.. for free... when the lady at the title transfer place asked me how much i paid, i said "free".. she just shrugged and wrote "NA" in the box like she does with every other vehicle that's more than 10 years old.. the state thought that was suspicious, since the guy that gave it to me lost his license from a DWI a couple of years earlier... so i had to fill out a form where i swore that i didn't live with the guy and that he'd never drive it. they also wanted me to get an appraisal or some sort of proof that the damage on the truck exceeded the book value of the truck- which was something like $1500 for a 22 year old F250.. i got a quickie estimate from a bodyshop for- get this- $20,000 to get it back to brand new condition and sent it in, along with a couple of Polaroids of the truck. the lady at the body shop thought it was the stupidest thing ever to have to go thru this, but she had a good time checking off every box on the parts list on the computer screen.. 2 weeks later i had a clean title in my name..

jere wrote: In ohio we just write in the purchase price of the car as $1. That way we only pay like 7 cents.

I haven't paid more than $100 for a car in Ohio... ever.

"and that vehicles in service for 10 years have already had taxes paid on them." ---yes this. I've never had the guts to put $1 but I've always put way less than the actual price.

dean1484 wrote: Here in Mass that will never fly. They now base the tax on what the state sais the car is worth. Does not matter If it is a smoldering pile of melted plastic and metal. YOU GET TAXED AS IF IT IS A GOOD RUNNING CAR. Really sucks!!!!

Yeah, this is THE WORST. I've had them pull this crap on me on two different occasions: once with my old '64 Buick Skylark, and a couple years ago with my 1997 Dakota. When I went to register the Dakota, I bought it for $500. It was rusty and needed work, but it ran and drove. I go there with my bill of sale and they told me to put that away, while the lady at the RMV pulled a value of nearly $3k out of thin air. I mean, I got a deal on the truck, but the thing was probably worth $1k AT BEST, and certainly not 3x that. I think Pseudosport had to pay taxes on a magical $5500 value that they came up with on his Z car, and he paid $500 (or even less) for that thing.

I can't wait to see what happens when I try to register my CSX, which no longer has a title because it was registered previously in a state that didn't require one (yes, I have a prior registration).

beans wrote:

jere wrote: In ohio we just write in the purchase price of the car as $1. That way we only pay like 7 cents.

I haven't paid more than $100 for a car in Ohio... ever.

Yeah, I think $100 is the most I've ever "paid" for a private party sale in Indiana.

Mass is the worst. Last year I tried to register a $2500 TR8 and they wanted sales tax on something like $16K. I had my dad register it RI. On a side note to prove how bad Mass is, yesterday a state rep was convicted of beating a women who refused to have sex with him. Several other charges were dismissed. He was sentenced to 6 months. The guy that was convicted of peepholing Erin Andrews got 2 years.

KY tried to screw me on this with the DeLorean. When I finally registered it here, it was just being transferred from my Dad back to me so didn't HAVE a sale price. The DMV woman initially pulled up a value of $25,000 for it (WAAAAAY more than I'd paid for it) that they wanted me to pay the taxes on. Thankfully she noticed that it was a transfer between family members and dug up a form to fax to my Dad to sign and have notarized stating that it had been transferred (back ) to me without any exchange of funds and between family members, exempting it from any sales tax.

And since we'd not paid any taxes on it when it was registered in GA (they just never asked for any...), I ended up not having to pay any sales tax on it at all.

I traded motorcycles with a guy and didnt pay tax. I figured I would have to pay tax on the value of the bike so I brought a few cheap ads for similar condition bikes with me. The nice lady at the DMV in Wisconsin filled out "trade" on purchase price and said that tax only applies if money changes hands, not goods or services.

Also, traded a ratty 98 TL1000S for an 01 GSXR-1000 with rattle can paint but otherwise awesome straight across. The guy was sold on the dual Yosh on the TL. I was glad to see it leave.

OK does a 3.5% excise tax based on purchase price when you get the title transferred to you.