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Buying a used car? Prepare for the tax bill [TEXAS]
STAR-TELEGRAM ^ | Sep. 26, 2006 | ANTHONY SPANGLER

Posted on 09/26/2006 6:30:36 AM PDT by Dubya

Used-car buyers beware -- of your sales tax bill.

Starting Sunday, tax offices across Texas will use a new system to determine sales taxes on private used-car purchases, which could set the value at more than someone actually pays for the vehicle.

Tarrant County is considering placing deputies or constables at tax offices when the new law takes effect.

"It's going to be a little bit of a shock to some people," said Betsy Price, Tarrant County tax assessor-collector. "We might have to charge them a lot more if the vehicle is valued higher."

Called "standard presumptive value," tax assessor-collectors will use a Texas Department of Transportation guide to determine a vehicle's value, regardless of how much a person pays for the car. The law would not apply to vehicles purchased through licensed dealers.

Buyers should expect to pay tax on at least 80 percent of the state-determined value, even if they paid less than that for the vehicle. State sales tax on used cars is 6.25 percent.

Mary Nell Mathis, tax advisor to consumer advocacy group Common Cause Texas, said the new guidelines could be fair.

"A $500 difference in the price of the car would only be $31.25 difference in sales tax," she said. "For most people, that's hardly worth arguing over. Some people will win and some people will lose."

TAX-STICKER SHOCK

New state guidelines meant to prevent fraud in used-car sales among private parties could mean higher sales taxes for used-car buyers.

Buyers will pay taxes based on a state assessment of the value, even if they paid less for the vehicle.

The law applies only to private transactions; it will not affect sales that go through licensed dealers.

A buyer can appeal the state's value of the car within 20 working days of purchase by getting a licensed car dealer or insurance adjuster to appraise the vehicle and fill out state forms, a process that could cost as much as $300.

The measure was among several bills passed by the Texas Legislature to generate money for school financing.


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Culture/Society; Foreign Affairs; Government; Miscellaneous; News/Current Events; US: Texas
KEYWORDS: friedman06; govwatch; texas; usedcartax; vehicletax
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To: SouthTexas

A gift in the eyes of the clerk does not make it a gift in the eyes of an in-law. :^)


101 posted on 09/27/2006 5:40:27 AM PDT by eyedigress
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To: Osage Orange

Are you trying to make me sick? ;-)

SZ


102 posted on 09/27/2006 5:51:28 AM PDT by SZonian (Fighting Caliphobia one detractor at a time)
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To: SZonian

We all ought to be sick........: )


103 posted on 09/27/2006 5:53:36 AM PDT by Osage Orange (The old/liberal/socialist media is the most ruthless and destructive enemy of this country.)
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To: Osage Orange

So true, so very true....

SZ


104 posted on 09/27/2006 6:15:06 AM PDT by SZonian (Fighting Caliphobia one detractor at a time)
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To: tacticalogic

Yeah. Another government rip-off. Buy a car that needs some work, pay a low price for it, and get to pay tax on a book price that most dealers don't even charge.

Crooked a$$holes. I'd like to see 'em all take a hike.


105 posted on 09/27/2006 6:35:23 AM PDT by 383rr (Those who choose security over liberty deserve neither- GUN CONTROL=SLAVERY)
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To: JoeGar
I discovered how the system works when my father sold me the keys to his old car for $799 and the car for $1.

in MI you are not taxed if you purchase a vehicle from a (approved) relative. and the people who collect the tax are pretty forgiving, if the sale looks reasonable, they'll ok it, if it looks ridiculous they'll assess it.
106 posted on 09/27/2006 6:47:56 AM PDT by absolootezer0 ("My God, why have you forsaken us.. no wait, its the liberals that have forsaken you... my bad")
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To: eyedigress

LOL, got that right!


107 posted on 09/27/2006 8:08:19 AM PDT by SouthTexas (Of course it's hot, it's summer!)
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To: tacticalogic
I think if they could, they'd outlaw self-sufficiency outright.
They're working on it...just a matter of time.
.
108 posted on 09/27/2006 8:27:20 AM PDT by mugs99 (Don't take life too seriously, you won't get out alive.)
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To: Dubya

don't republicans control all houses of the texas leg and the governship? Isn't texas one of the most conservative states in the country? So why are the raising taxes and giving special interest breaks to liscenced dealers?


109 posted on 09/27/2006 8:55:56 AM PDT by traviskicks (http://www.neoperspectives.com/Amnesty_From_Government.htm)
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To: inneroutlaw

Ping.


110 posted on 09/27/2006 12:12:05 PM PDT by elkfersupper
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To: Dubya

If you find the right insurance adjuster, they are free to charge at little as they want to complete a certified appraisal. I have done many of them for gas money alone.


111 posted on 08/22/2009 10:00:24 PM PDT by Petty Details (sometimes its just in the petty details)
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To: ecomcon
What the hell isn't for other peoples freeking KIDS!
112 posted on 08/22/2009 10:03:49 PM PDT by MaxMax (Will the real JIM THOMPSON please pick up the white phone)
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To: SouthTexas

There should be NO sales taxes on private transactions of second hand goods.


113 posted on 08/23/2009 6:59:56 AM PDT by ecomcon
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To: steveegg; WestCoastGal; tubebender

FIL gave me a car many years ago and the title transfer was higher because it was a gift than if he’d have sold it to me.

It was nothing more than a car to take to the beach and keep our other vehicle from suffering premature decomp from the salt and sand.

63 Mercury Monterrey, slanted back window that rolled down and a 390, I loved that car. :)


114 posted on 08/23/2009 9:11:15 AM PDT by SouthTexas
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To: ecomcon

Just realized this was an 06 thread, no wonder I didn’t remember my previous post. LOL


115 posted on 08/23/2009 9:13:19 AM PDT by SouthTexas
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To: SouthTexas
unnnngh... I'm trying to rally care about Texas... nope nothing.
signed by a Kaulifanian being taxed as I compose this abusive remark.
Drink...
116 posted on 08/23/2009 3:36:54 PM PDT by tubebender (My tag line was last seen crossing the border into Oregon on highway 395 with 2 mangy dogs...)
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To: Dubya

Screw ‘em. Donate the vehicle or gift it.


117 posted on 08/23/2009 3:43:53 PM PDT by hkp123
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