Hey guys- I don't know if this is a repost or not, but a buddy of mine got a letter from the Illinois dept of revenue saying he owed $862 for sales tax he didn't pay on a cab shell and frame that he bought, based on the vehicle's "fair market value". Where they are deriving this fair market value is a mystery. He bought it, and transferred the title and paid the sales tax that they said he owed on the vehicle. (he's building a truck based rat rod) One of the guys here at work's wife works at the dmv office, and said the way to handle it was to take detailed pics, show the bill of sale, and call the number at the bottom of the notice to try to resolve it. Apparently they are on a money hunt (dept of revenue) and are looking at all kinds of back records (not just collector vehicles) to try to boost their bank. It supposedly has nothing to do with the secretary of state's office, other than they have to provide the records to the tax man.. Anyways, the letter went on to state that penalties and interest were accruing daily... Thought some of you in Illinois might want to be aware of this, just in case. If it is a repost, sorry.
Thank you for the update. The current Govenor seems to be almost as big a crook as the last one. Is that last guy doing his hard time yet???
Damn ,I didnt think a bare frame and old cab could be worth $10k on its own. They must be using the magician's old rabbit trick hat to find values. Get a supervisor involved with this . There are to many issues coming up. Keep detailed notes of dates , times,names and commitments. Illinois is in deep shit with its revenues and some employees are known for passing the responsiblilty of decision making around the office.
Title transfer is $25 unless the purchase price was more than $15k, in which case there is a scale that's used. I believe the top is for vehicles with a purchase price is $25k or more, in which case title transfer is $1500. The regulation says the transfer fee is based on the purchase price, not fair market value. FMV is only used if it was a gift or purchase price can't be determined. Stick to your guns on this and if they give you a hassle, file a claim to contest it.
just to clarify,the title transfer fee was the normal cost, it was the sales tax that the dept of revenue is claiming is under paid, based on their "fair market value". I'm now concerned I'll be getting a notice myself, as I purchased a '99 grand cherokee a year ago with a bad engine for $500. I'm wating for them to tell me I owe more tax on it because of fair market value...
I'll be curious to see the outcome of the 27 T title transfer I processed last week. I decided to go through a private license service instead of dealing with all the "smiling faces" of our local DMV office. I'll keep you guys posted on the results!
I got a bill form Ill Dept. of Revenue for $1800 plus interest on a old 32. You have to have a signed bill of sale or get it aparised. The Revenue Dept will not come to your place, you have to do the foot work to prove what you payed for it. Get A SIGNED BILL OF SALE ON ANYTHING
Unfortunately Illinois has discovered a Cash Cow. It's only a matter of time before other states follow suit. Look for more difficulty ahead in registering collector vehicles. If ever insurance companies and DMV's compare notes it will be disasterous, such as saying you paid $2,000 to avoid sales tax and insuring it for $30,000. Remember the trouble Boyd got into in CA. ?
when you do your title transfer you have to make out 2 checks 1 to SOS and one to IDR older vehicles are supossed to be a flat rate but it varies by the year I think. My guess is either somebody checked the wrong box or filled out the IDR form incorrectly I did my last transfer last spring and the tax was minimal Like 15 or 20 bucks I work for the stsate if I get a chance I'll run over to that office and see if I can get a IDR form but unless this has recently changed something smells fishy in Denmark
i was yelling about this the other day have the title service copy your bill of sale and send it with it to the IDR i had to track down a guy last night and get a bill of sale for a car i bought and sold 2 years ago. My buddy bought the car from me, and i never transfered the title i have recieved 2 such notices and have resolved each one with sending back the letter with the copy of the bill of sale fucking ROD BAGOIAJVGGGUHSKI tk
FL does the same thing, at least in Orange County. If there's a major diff between the price on the title and the FMV, they send out a notice to pay the difference in the sales tax....PLUS a penalty.
MN does this also. Sales tax is based on the Fair Market Value now because the state has determined that way too many people were lying about the purchase price on the forms. It is my understanding that they do not just accept a bill of sale to demonstrate value either, you must justify the low value (I don't know for sure what they do accept, but I would assume any receipt for any part that you put in it to make it run would be helpful, pictures etc). The only exception that I know about is transfering between family members, which I have done for just the registration fee -- no sales tax. I guess another thing that this rule does is catches those cars that should have a "reconditioned" title (any newer model car that has had significant damage that has been repaired)
OK I picked up a IDR RUT-50 form if the purchase price is less than 15K it is a flat rate. vehicle 11 years old or older its $25.00 It does state: "Purchase price is the value given for a motor vehicle and may be in the form of Money, credit, property or service. When there is no stated purchase price,such as a gift or even trade,fair market value is used.You can obtain a fair market value from a licensed dealer. Instructions for calculating the tax due based on the purchase price (or fair market Value)of the vehicle follow.If a reveiw of the return results in question about the amount of fair market value stated, we have the authority to determine the vehicle's fair market value." He should have a copy of the form he filled out. I would be willing to bet he didnt check the right box or something was not filled out right on the form causing it to be flagged and then a notice to be sent out. I see these people at work. Trust me they could give a shit less as long as its filled out properly when some mistake is made however then it gets looked at and has to be resolved somehow. BTW for him to owe over $800.00 more dollars they are figuring value at over 20K
this has happen to 4or5 guys around here lately. tax bill from 1200 to 1800 each it seams to happen after they get or upgrade there insurance coverage. havent heard of any body with just liability insurance getting a notice yet
Not this time... I got a chance to talk to my friend last night again, and in his quest for information, it turns out that almost all of his car buddies in the town he lives in have this same issue now, and one guy got 5 letters for the cars he owns. I don't have a problem with this setup for the guys who are really trying to avoid the tax on high dollar rides, but this is maddening for the honest guy buying a field car to build a ride out of... especially to come back after a long period of time to try to gouge more $$$ out of them. is there an official Illinois bill of sale form available on the web, so that when I go buy my own field car, I can at least have a head start on the BS?
fucking ROD BAGOIAJVGGGUHSKI It's Blagojevich Please dont insult the Polish people of Illinois as the governor isnt smart enough to be Polish.
I have heard of this mainly when cars are bought from dealers or out of state. I still think maybe the wrong box was checked or somthing to cause it to be flagged in the processing any ways here is a link to the officail tax rate for used cars from the RUT-50 form it shouldnt be too difficult to get this straightened out http://www.revenue.state.il.us/taxforms/Sales/rut50taxchart.pdf
In Orange County, FL the seller has to sign an affidavit stating that the indicated sale price was what the car sold for and a simple reason, i.e. condition, needs repair, etc.
Ha ha, glad it's not just me! I got said letter a couple months back. If you look at the form they refer to, the tax they charged me was based on a $30,000+ value .... It's a shell of a '31 coupe. Guy I work with just bought a nice restored '31 coupe... got a letter...tax bracket lower . On top of it all, they were trying to charge me $450 in late charges! On my first notice! Regardless, yeah, bill of sale is the best way, as far as I know. Haven't heard back, so I'm hoping all is well. Kamp
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