Posted on 09/26/2006 6:30:36 AM PDT by Dubya
Colorado does this. They go by Blue Book value. Kind of sucks if you are buying a relatively recent car that needs work.
Duh, I thought this was already the case everywhere. I discovered how the system works when my father sold me the keys to his old car for $799 and the car for $1. The DOT would not let me get away with paying taxes only on the one dollar cost of the car.
Well, if it's for the cheeren.
Without looking at it.
In Tennessee a few years back, I bought a car from my brother-in-law for 3,000. When I went to the clerk to get new tags I gave the correct price. After I told her I bought the car from a relative she marked out the price and wrote in Gift. No tax was levied. I was amazed.
Texachusetts. I know, I'm going to be lynched for saying that, probably before lunch.
Which kind of makes the point that this is not a new tax. It has been on the books for decades. Only it was a tax on the honest, because everyone else just lied and said the car was a gift, or that they paid $100 for it.
Scrap yard, hell. Dump the car on the governor's lawn and say "Here, it's a gift, YOU sell it and pay the tax."
No, instead of that we're getting the "business tax" where they charge the income tax to the business before the business pays you.
I was given a 1954 Ford Pickup by my uncle a few decades ago. I had to pay tax based on "what it was worth" but they didn't call it a "sales tax". I was steaming mad until they told me that, at which point I shut up.
Being a black and white thinker, I believed that if they called it a sales tax they could only tax the amount of money that changed hands, but if they called it anything else, they could pretty much charge what they wanted. They based it on a $500 value - and I quietly paid it.
You sadly are not far off anymore.
I was transferred to Spokan, and registered my car locally. They wanted to tax it. On the original sale price. The car was paid off and was 4 years old.
WA is that way because Ore has no sales tax I guess.
Just crazy.
I got questioned about the sales price on an old Triumph Spitfire I bought. I explained that the transmission was in a bushel basket in the trunk in about a hundred pieces and they said "Ew." and processed it.
Where do you get that crazy idea? The whole point of the FairTax is to ensure that everything is taxed only once.
Perry definately needs to go. Taxes, spending and the border are out of control here in Texas.
While not property taxes (those are local) if you wonder where you money is going look at the budget for the last ten years. Wonder why we "need" toll roads? Check out the budget for transportation as compared to "Health and Human Services".
And they dare call themselves republicans.....
But of course. It doesn't take a brain scientist to understand that the tax has already been paid on the car when it was originally purchased and that other than the cost of transferring the title the state has no business collecting taxes on a downstream sale.
Seeing as how it's pretty dangerous not to pay the IRS or property tax underreporting the amount paid on a used car was our Boston tea party.
Blue book is usually far more than the retail market price. This is another screw job.
I'm amazed too!
Bought any real estate lately?
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