[JoeGar]

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

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.

[Pilsner]

The DOT would not let me get away with paying taxes only on the one dollar cost of the car.

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.

[absolootezer0]

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.