rslifkin wrote: In my mind, it should definitely be the negotiated price, not the advertised price that goes on the bill of sale. Why would you write a higher price than what the person actually paid?
I would never write down an advertised price, I would always write down what the buyer paid, but the question here is really whether I will write down something less than what the buyer paid.
I have yet to pay florida sales tax on any of the cars I've purchased. All of them have been sub 1k cars but every time I ask the seller to put "gift" or they leave it blank for me.
IL goes by year of the vehicle to 15 years old, then a flat fee unless it's over $15,000. I did ask a seller to write up a bill of sale for $14,999 (on a $15,000 sale) which saved me a $1,000 in tax.
I refuse to comment about past experiences on the grounds that I may incriminate myself, but suffice to say that I'm in the "It's already been taxed once" crowd, too.
calteg wrote: Texas has an "minimum tax", so it's a moot point with GRM type vehicles
They finally realized we were all lying all the time. 
I suppose I would be less inclined to fidget over this if it wasn't for a $20k-ish car purchase.
Here in MA, when you go to register a vehicle after buying it, they could care less what the number on the bill of sale says. They pull a value out of some database (more likely, out of their shiny happy person) and you have to pay tax on that. Example, when I bought my beater Dakota, I paid $500. I got charged sales tax on a value of $3500. And it's even worse if you buy an old classic that was a $300 basket case that you got barely running enough to put on the road. You may get charged the tax on the value of a fully restored perfect example!
And then every spring, there's an "Excise Tax" bill that you get that's supposedly tax for using the roads. This is another number they arbitrarily pull out of their rear. Let's make another example of my 1997 Dakota. The tax on that heap is MORE than my wife's 2010 Mazda 3! 
I don't particularly enjoy paying taxes and I think in most cases it's pouring good money after bad, but rules is rules and there's all that nasty language about under penalty of perjury and stuff. The way my luck works is that if I were to commit fraud in that way, I'd be the one-in-a-billion chance that someone would actually notice and wind up cuffed to a metal chair in a dark room with a single bare lightbulb shining in my face. If there's a way to legally avoid the tax, like transferring to a family member or something like that, then I'm all for it, but in this case, I would politely decline to be enticed to commit a crime.
I bet the government isn't questioning anything when someone is paying $90k in sales tax for a Ferrari that is 50 years old. I guess if you have that much money you will title someone where else other then PA.
Harvey wrote: I suppose I would be less inclined to fidget over this if it wasn't for a $20k-ish car purchase.
For that much I would only put what you sold it for. I was thinking the typical $500-$1200.
Knurled wrote:xflowgolf wrote: When you really stop and think about it, the whole concept is kind of BS. The sales tax was paid when the car was originally purchased. Then they get to tax it again. ...and again. ...and again, every time it changes hands. For no real reason. If the original buyer kept it till it hit the scrap yard they wouldn't have to keep paying sales tax on their own car again and again every few years. Everybody has to pay a use fee by way of registration annually anyways. Charging sales tax on something that has already had a sales tax paid in full by way of original sale is a bit egregious.Why? It was sold again. I'm pretty sure that you pay tax on things that you buy from Goodwill, and I know the used records and books store I go to charges sales tax. I also pay sales tax on the used parts I buy from the junkyard.
yea but all those places you listed are businesses, such as a used car lot would charge tax. But between 2 private parties i dont think it should be taxed again. Do you pay tax when you buy car parts from someone on this board? or what about the 1000's of craigslist deals on random items? If its not a business sale then tax should not apply.
I leave the field blank, as do most of the sellers I've bought cars from.. Of course, I wouldn't do that if I were a business. Not worth the risk.
In CT we have the joy of not only paying tax on a private party sale, but also yearly taxes to the town for the ownership of said vehicle. Yay for taxation!
Everybody that posted here that they cook the books is going to get super-scrutinized at the 20xx Challenge. 
SC charges a sale tax on all car sales, but right now its capped at $300. Once it goes on the tax rolls, you pay property taxes based on some obscure book value. Our property taxes on cars are a good reason not to buy new cars.
When I sell a vehicle, I sign the title and hand to them, saying, its between your God and your conscience as to what you put down for the sales price.
Tax evasion in California carries a sentence of up to 1 year in jail, and up to a $20k fine.
Got to ask yourself, is it worth it?
I've never filled in the price box on a title when selling a car, that's the buyer's problem.
Yeah, it doesn't seem right that you have to pay sales tax again and again, every time the car sells. In FL, you only pay sales tax on the trade difference, a measure that helps the dealers by making it more attractive for you to trade in. Apparently Montana does not charge sales tax on used vehicles, so the new thing for high-end collectors is to create a paper corporation there and register your cars to it.
mr2peak wrote: Tax evasion in California carries a sentence of up to 1 year in jail, and up to a $20k fine. Got to ask yourself, is it worth it?
When there's 49 other perfectly good states to call home, nope!
Arkansas doesn't have a private party sales tax on any automobile less than $5K. No biggie when you're fleet consists primarily of ~$3K vehicles.
In Missouri we pay tax based on the difference between the new and the old vehicle (within six months). If I entered a lower amount on the BOS then I'd end up paying more taxes.
This has to be one of the most widely disobeyed laws here in Michigan, based on what I've heard.
BrokenYugo wrote: I've never filled in the price box on a title when selling a car, that's the buyer's problem.
THIS
Paul_VR6 wrote:BrokenYugo wrote: I've never filled in the price box on a title when selling a car, that's the buyer's problem.THIS
In Ohio they're sticklers on it now, the notary isn't even supposed to notarize the title unless the buyer's name, address, mileage, and sale price are listed. It's to prevent curbstoners (non-licensed dealers) and sales tax fraud. Some notaries will still notarize it but if you take an unfilled title to the DMV they get pretty upset about it and require additional documentation and sales price affidavits. Can be a pain in the butt.
Man im glad i dont live in some of you guys states, if it had to be book value the taxes on everything i buy would be likely more then the price. I know nada has a crazy value for my wagon. Im not sure what the truck i just purchased has for a book value but i got it dirt cheap because its ugly and 2wd.
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