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.
A gift in the eyes of the clerk does not make it a gift in the eyes of an in-law. :^)
Are you trying to make me sick? ;-)
SZ
We all ought to be sick........: )
So true, so very true....
SZ
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.
LOL, got that right!
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?
Ping.
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.
There should be NO sales taxes on private transactions of second hand goods.
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. :)
Just realized this was an 06 thread, no wonder I didn’t remember my previous post. LOL
Screw ‘em. Donate the vehicle or gift it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.