Rhode Island sucks. On classic car private party sales they charge sales tax on high blue book price, then make you get an appraisal to get your money back. 18,500 on a 55 chevy 2 door sedan. Any other states out there have this?
Current Old Cars Report Price Guide values for a '55 2 dr sedan are 1. $31,000 2. $21,700 3. $13,950 4. $6,200 5. $3,720 6. $1,240 What condition is yours in? Seems they are trying to stop people from buying an $18,000 antique car while claiming it's only worth $500. Here in Arkansas, cars are taxed at actual sales price, minus trade-in. Cars that sell for less than $2,500 are not taxed at all; you'd be surprised how many high-dollar cars "sell" for only $2,500.
Yeah Mass sale tax figured on a private sale for all vechicles per book value not on the purchase amount.
Well, that sucks, then Contact straykatkustoms here on the HAMB for an appraisal. Send him some photos. There may be others as well who could do an appraisal.
Washington charges on the basis of the Old Car Value Guide, without the deduction for non-original parts. When I registered my 41 Chev flatbed, the Dept of License told the clerk to change it to a pickup designation on the title because they didn't have a listing for flated 1 1/2 ton trucks and that way they could know what to charge for it. I complained, but to no avail.
,,,,,,,,buy a cheap condo in New Hampshire , no sales tax , no insurance to register a car .....sweet !
I asked the old lady behind the desk if I could get an appraisal first and she said "no have to register first". How gay is that.
we pay tax for sold price ,but we are also subject to ,some months later , provide a price for what the car sold for.
I got my appraisal done first (which was pretty close to the bill of sale price), went to the tax office in Prov. and paid the tax on appraisal value, took the slip with me to the DMV, and only paid registration fee. At the time there was no way I could afford to pay tax on "finished" book value and have that money tied up until the refund was issued. But the BEST thing to do is to get the appraisal done first, before you work on it, or add parts, or increase it's value in any way. Then go pay the tax right away, and hold onto your slip until you want to register it, even if it's quite awhile. It's better to pay tax now on $1,000 than to pay tax later on $10,000 It is complicated, but not impossible. Good luck, Bob
Thanks Bob, that sounds like the thing to do. I didn't think of that. Blood pressure dropping now thanks!
WoW, that sounds like "Guilty until Proven Innocent" - and People bag on California! We are taxed on the sale price as stated on the Title when the owner fills it out for the sale. We don't have to have a Bill of Sale with that filled out and never have to have a notarized one. I usually get a bill of sale made out for the same price, just in case they want to question the selling price.
A friend of mine ran into that here in NM when he went to title his 51 Chevy. Car was truly worth only $500 but they wanted to tax it at top book, period, no refund for appraised value. Don't know what the outcome was and I've registered several old cars since with no issues. Of course I NEVER go to the DMV, I pay the fee and go thru a title service. DMV employees tend to make up their own rules as they go!
We had a Chief of Police in our town under report the price paid on a classic '55-'57 Thunderbird. When he was caught, he left office.
Yea, NM is also cracking down. I just titled a "project" car with obvious problems I bought from out of state and the computer kicked it back as being too cheap on the price (less than 75% of low "book" value). Apparently the computer check is a very recent addition. The good part was the employee had just inspected the serial number and felt the sales price was quite appropriate. Took her at least 15 minutes on the phone with the Santa Fe main office to figure out how to overide the computer block. Saved me the hassle of getting an "approved" appraisal, whatever that means, or paying tax on their declared value. Yes, I was lucky to get the DMV service I did, but just got to wonder what would have happened at a title service.
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