sales used tax you guys paid after purchase

[NSX-GUY]

I'm glad you're not my CPA. Anyone who follows your advice would probably be in jail...

Didn't you just chastise someone else for going "off topic" ?

And though he clarified, clearly he was stating his *opinion* and not the advice he would give his clients. :wink:

 

[NSX-GUY]

In Texas they recently implemented the "blue book" system.

IMO, it's a complete scam and abuse of power. The employees there quietly agree with me as well.

I used* to sell motorcycles and bikes fairly regularly as a side business. I now just buy them for personal use, a new used car/motorcycle annually.

These policies really hurt the little guy. Here's a good example-I purchased a 3 year old honda sport bike that did not have original paint. The paint job was also fairly poorly done. He was also in a crunch to get rid of it, so I got it for about 2 grand less than a good condition, all original model would be worth.

The sales tax was about 120 dollars more than it should have been because they went by their "blue book". I told them this is outrageous and that the bike, although clear title, was not worth the amount they were basing the tax on. $120 isn't the point. I don't like to be ripped off, especially by the government -I- FUND.

They said I was more than welcome to have it appraised by an insurance company or their adjuster. I said "Fine, when is your adjuster available?". The lady then replied meekly that you have to schedule it and it costs roughly $100. She went on to say that more than 50% of the time the adjuster goes by blue book value regardless. Insurance adjusters are about the same but you have a better chance of getting the car valued lower.

So unless you are buying a car worth more than 12 grand or so, it's pointless to have it appraised even if you are paying taxes on several grand you shouldn't be! Complete horse$hit.

This really hurts the guys buying damaged and fixxer up cars the most. An el salvadorian friend of mine who works in the warehouse bought a 2002 silverado that had been in a front end accident for 6k [clear title]. He ended up paying taxes on it as if it was worth double that! He was too intimidated to talk to an adjuster and didn't even know he was basically being scammed until he told me it was unusual he had to pay so much taxes compared to his last fixxer-upper truck he bought before the new system.

The whole system of charging sales tax over and over again is also complete garbage. They should have a system where the original buyer pays the full tax, the 2nd pays 1/2 that, and so on until they level it out at 1% or just get rid of it. They have to charge some sales tax on the 2nd purchase because in many states it would then be much cheaper to buy a slightly*** used car [6k+ in savings on an NSX for example if someone was selling a used one with 50 miles].

In New York they changed to the "Blue Book" system MANY years ago. The way they did it was, if it was a Dealer that sold it to you they'd charge sales tax on the actual price. If it was a private party sale and you had one of those hand-written bill-of-sales they would check the "Blue Book". If the Blue Book was higher they would charge you sales tax on the higher price.

HOWEVER, you had the option of getting the car appraised and, with proper documentation, you could file to get the excess $$$ refunded to you.

As far as sales tax being charged over and over again, I guess that's why it's called "sales tax". You buy/sell something you pay tax on the sales. Pretty simple actually. Although they should really call it "purchase tax" since the sales tax is ALWAYS passed on by the seller to the purchaser.

And if the states didn't collect sales tax they'd have to raise the income tax rates and then everybody'd be crying about that.

And if they didn't do that everybody'd be crying about how bad the roads have become.

And so on, and so on, and so on.

As for the "hammer" example, I guess I'll have to look at my state income tax form(s) more closely. I always thought the sales tax to be paid on "casual sales" (except those that had government controls in place like cars) was excepted. Of course ANY business that has to be registered with the government, as a "seller" or "re-seller", is required to collect sales tax

 

[NSX-GUY]

BTW, $61K price, 'bout $5K sales tax (New York) :redface:

 

[NSX-GUY]

I think "adjusting" the sales price is just dumb not to mention illegal. Risking a felony perjury charge to save a few dollars is just way stupid. Pay the darn used tax and enjoy driving without having to worry if the local DMV police are looking into your transaction. Comes down to basic honesty.

Dishonest ? Sure.

Dumb ? Probably.

But a "felony" ? I'm no lawyer but I seriously *doubt* that.

 

[lrsudog]

Dishonest ? Sure.

Dumb ? Probably.

But a "felony" ? I'm no lawyer but I seriously *doubt* that.

It's fraud in California. The disposition of "felony" depends on how much money the "victim" is defrauded of.

I'm no lawyer either, but I asked the DMV clerk when I registered my NSX recently.

 

[ALSWEL]

I paid $50 at the local currency exchange here in chicago. Thought I got away with something until 2 months later I received a bill for the full sales tax, plus interest, and a $150 late fee. I promptly paid the state their money.

 

[nsxtasy]

I paid $50 at the local currency exchange here in chicago. Thought I got away with something until 2 months later I received a bill for the full sales tax, plus interest, and a $150 late fee. I promptly paid the state their money.

In Illinois, currency exchanges handle certain transactions that in many states are only handled by state DMV offices.

In Illinois, the sales tax is actually handled by a separate branch of state government, the Department of Revenue (DoR), and not by the Secretary of State's office (that's our name for the DMV). When you do a title change at the Secretary of State's office, they actually send you over to another window for the DoR where you pay the sales tax (use tax) in a separate transaction.

 

[mickeylex]

Dishonest ? Sure.

But a "felony" ? I'm no lawyer but I seriously *doubt* that.

If you are not a lawyer, "seriously doubting" laws you aren't expert in could land you in trouble.

I know Cairo94507 and he knows a thing or two about the law. :wink:

 

[NSX-GUY]

If you are not a lawyer, "seriously doubting" laws you aren't expert in could land you in trouble.

Cairo94507 is an attorney. He might know a thing or two about the law.

I seriously doubt I would venture into the process without having a lawyer present. :wink:

How's that ? Happy now ?