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Anyone ever receive a ridiculous tax assessment on a project?

Discussion in 'The Hokey Ass Message Board' started by RagtopBuick66, Jul 14, 2012.

  1. Not sure where you got this information about a "Book", but I have registered many old cars here in the Orange County over the past few years, including 3 this year alone and everyone of them they went by what was signed on the back of the pink slip. They really didn't care about the bill of sale, what was on the pink was fine.
    I am really curious about why they would have done this, not only that, it would not be legal, the use tax is based on what was paid - it is essentially sales tax and the basis of the registration fees for the following years. I would sure as hell fight it if they tried to charge me more based on a figure that was higher than what I paid!
     
  2. we donts gots dose type taxs here the only time we pay taxs on a vehicle is when we buy it (purchase ) and when we tag it and the tag tax is just what the taxs are for the tags has nuttin to do with vehicle value
     
  3. Dak Rat
    Joined: Mar 8, 2006
    Posts: 470

    Dak Rat
    Member

    In North Dakota any vehicle over 40 years old can be licensed as a "pioneer" vehicle for $25. You are then done with the DMV forever--a one time fee.
     
  4. 57Custom300
    Joined: Aug 21, 2009
    Posts: 1,387

    57Custom300
    Member
    from Arizona

    I'd be finding a new state. As mentioned Tn. sounds good.
     
  5. Roger Walling
    Joined: Sep 26, 2010
    Posts: 1,149

    Roger Walling
    Member

    Ma. uses the NADA value guide for assesing sales tax when registereing a car.

    The NADA value for your car is,

    <TABLE id=ctl00_ctl01_ucValues_tblSummary cellSpacing=1 cellPadding=1><TBODY><TR class=vdppricetypes><TD style="WIDTH: 147px; VERTICAL-ALIGN: middle">Pricing
    </TD><TD class=pricetype>Original
    MSRP</TD><TD class=pricetype>low retail</TD><TD class=pricetype> avg retail</TD><TD class=pricetype> high retail
    </TD></TR><TR class=tableHeaderVDPValueRow><TD class=tableHeaderVDPValue> </TD><TD class=optionvalue align=right>$1,761 </TD><TD class=optionvalue align=right>$4,350</TD><TD class=optionvalue2 align=right> $8,050</TD><TD class=optionvalue3 align=right> $11,850</TD></TR></TBODY></TABLE>

    The problem with this system is that they are not using the book properly. The guide states that these are prices for a running and servicable car, not a rat or a parts car.

    I have heard of requesting an abatement, but I was told you would be wasting your time.
     
  6. RagtopBuick66
    Joined: Dec 12, 2011
    Posts: 1,182

    RagtopBuick66
    Member

    Woah woah woah, hold on there Sparky... This is a running and serviceable car. It's a daily driver project in progress. It sure as hell ain't no rat, nor is it a parts car. But cars in "like" condition sell for right at about $2800, and that's on the high end. Still a long shot from $11k.
     
  7. Roger Walling
    Joined: Sep 26, 2010
    Posts: 1,149

    Roger Walling
    Member

    Quote,

    "Woah woah woah, hold on there Sparky... This is a running and serviceable car. It's a daily driver project in progress. It sure as hell ain't no rat, nor is it a parts car. But cars in "like" condition sell for right at about $2800, and that's on the high end. Still a long shot from $11k. "


    I agree with you, The NADA price guides are way off on older cars.

    (I guess they have been reading Barret Jackson Hype articles.)
     
  8. afaulk
    Joined: Jul 20, 2011
    Posts: 1,194

    afaulk
    Member

    I'm sorry, I honestly feel your pain. Only you and others with similar frustrations can do anything about it. Lynch a few of the bastards responsible and things will change. The government must respect (fear) the peoples power. We're in the process now of giving that away. END RANT!
     
  9. jazzbum
    Joined: Apr 5, 2005
    Posts: 598

    jazzbum
    Member

    there are two sides to this. in california, we're charged different registration fees based on the value of our vehicles. old cars are almost always much cheaper to register than newer ones, for the same reason they're cheaper to buy standard insurance for (which we are required to do here)--the official replacement value is lower. this seems like a good thing until you actually wreck an old car, and your payout is far less than actual market to replace the car. i think i'd rather take an overestimate value than an undersized one, at the very least it gives you some legal basis for a fair price on your car. i assume your chev will be worth 11k eventually, right?
     
  10. When a car is registered for the first time in OK, you pay for the tag, title, notary fee, VIN inspection fee, and 3.5% of the purchase price of the car. You can't say you paid a hundred bucks, though, because the book they use has a range from shitbomb to restored values (according to the state). Let's say your car is worth from $2,500 low to $6,500 high. You say you paid a grand. You are going to pay 3.5% of $2,500 for the excise tax, rather than 3.5% of $1,000. If you paid $8,000, though, you'll pay 3.5% of $8K!!! The state NEVER passes up opportunities for revenue generation!

    Good thing is that you pay the tax ONE time. We do not have personal property taxes anymore, thankfully! So, your annual registration renewal on anything older than 21 years is going to be $22.50.
     
  11. Jim-Bob
    Joined: Oct 13, 2008
    Posts: 129

    Jim-Bob
    Member

    I had a similiar thing happen here in ILL-inois...It was even a '53 Chevy, albeit it a 2 door. They appraised it at almost 20k! Their letter said the performed a "independant valuation"...How is it INDEPENDANT if the TAXING BODY does it? I asked the guy at the Rev, dept whatthey use for a value and he said "highest blue book value". It was a WRECK when I bought it...no interior, no motor, dash was cut out. Paid a grand for it. Took pictures all along the process, which they would not accept as evidence. They said I could have it valued, but the car is DONE so it's worth more than I paid.

    What I hear states are doing is going back and searching out cars recently purchased buily before xx year and sold for xx dollars...Some people, when they do the title transfer, say they paid a lower amount to pay less tax. States send out that letter figuring they will scare the offenders into paying. Illinois has done it to a TON of people.

    Your best bet is to get a bill of sale for the vehicle and see if they will take that. The problem with this whole process is that Illinois wants the bill of sale (even though they don't require it) despite the fact you could easily FAKE one! That's Illinois for ya!

    Well, good luck to ya, I hope the B.O.S. thing works for ya!
     
  12. RagtopBuick66
    Joined: Dec 12, 2011
    Posts: 1,182

    RagtopBuick66
    Member

    Highly unlikely unless I do a frame-off resto and get everything re-chromed, etc. I don't have any plans for it other than to make a nice-looking, good running daily driver that I can haul the fam to car shows and Cruise-Ins in. I wouldn't invest the kind of $$$ it would take to make a 4-door into an $11,000 car. It just doesn't make sense. I only bought the car because I got it for a steal.
     
  13. RagtopBuick66
    Joined: Dec 12, 2011
    Posts: 1,182

    RagtopBuick66
    Member

    That's the funny thing... I turned in the notarized B.O.S. when I registered it. It even stated that I paid $600 cash.
     
  14. RagtopBuick66
    Joined: Dec 12, 2011
    Posts: 1,182

    RagtopBuick66
    Member

    This is funny...
    I just read on the back of the bill "The owner who appeals the appraised value of a classified motor vehicle shall pay the tax on the vehicle when due, subject to a full or partial refund, which may be approved at a later date." "If the appeal is decided in the owner's favor, the proper amount will be refunded."

    SOOOO, I'm supposed to pay whatever tax is assessed, regardless of the amount, BEFORE reassessment, and then sit on my ass and hope for a refund. So if they had sent a bill saying "We value your car at one-million dollars, which you may appeal, but pay the tax based on that FIRST", I'm supposed to just pony it up and sit on my thumb for six months. I'll register it out of state before I give them a dime for their ridiculous assessment. I have a family to take care of. I don't have money to loan the state for their fuck-ups.

    My OT '99 SAAB 9-5 SE with the low-mileage turbo-charged V6 and every option available was assessed at $3,150. My taxes on it are $69.49. If these cars were sitting side-by side on a car lot, which do you think would command the higher sale price? Most people (those in their right minds anyway) would walk right past the old '53 with a comment like "was probably a nice car at one time" and never once consider paying a dime for it, nevermind $11k. I just think this whole situation is funny.
     
    Last edited: Jul 15, 2012
  15. racinman
    Joined: Dec 30, 2008
    Posts: 952

    racinman
    Member Emeritus

    Just try and find out who assess the car? and do they discriminate for condition of the said vehicle... (they don't like the discriminate word)
     
  16. texasred
    Joined: Dec 3, 2008
    Posts: 1,130

    texasred
    Member
    from Houston

    XX2^^ On top of shit roads in Houston, we got Mayor Strap on..
     
  17. If you accept a payout under the replacement value of your vehicle that is your own fault.
     
  18. GassersGarage
    Joined: Jul 1, 2007
    Posts: 4,727

    GassersGarage
    Member

    The info I got was last year when I registered my '63 Gran Prix. They didn't want the bill of sale, they just looked it up in a book.
     
  19. jazzbum
    Joined: Apr 5, 2005
    Posts: 598

    jazzbum
    Member

    well, you can call me an optimist, i guess. it may suck to have to pay the higher taxes now but i think i'd still want the inflated value if i had to make an argument for replacement to my insurance company.
     
  20. jazzbum
    Joined: Apr 5, 2005
    Posts: 598

    jazzbum
    Member

    you shouldn't just take the check, that's true, unless the payout is higher than the real-world value of the car, which it would be in this case. if the state assesses a high value, the insurance companies have a hard time beating down your payout.
     
  21. GearheadsQCE
    Joined: Mar 23, 2011
    Posts: 2,990

    GearheadsQCE
    Alliance Vendor

    Just think about how much those fees would be on all the NC Nascar shop vehicles. I bet Richard Childress, Michael Waltrip, Rick Hendrick etc. would have a collective heart attack if the formula was applied to their 'Hobby' cars.
    Jack Rousch on the other hand, would probably register his in Michigan and thereby avoid y'alls tax. but then he would have to insure them under our 'No Fault' insurance law. Would make $167 a monthly payment to get insurance coverage that will pay you $500 if someone else hits you.

    No wonder people lie about the value of their cars.
     
  22. Mr48chev
    Joined: Dec 28, 2007
    Posts: 30,830

    Mr48chev
    ALLIANCE MEMBER

    I believe that the 167 is an annual property tax rather than a one time thing.

    Most states now have gotten into using "book" value rather than a bill of sale price when they tax you when you first register the car. Washington is one of those and if you have a bill of sale that is a bit on the low side you had better be able to back it up with the car sitting out front of their office or a batch of photos showing why you only paid X dollars rather than XXX dollars that their book says it should sell for.
    When I got Washington registration on my 48 30 something years ago I had to pay tax on 400 because the old gal behind the counter said that any pickup that ran was worth a minimum of 400 at the time. I'd hate like hell to have to pay what they think it's worth now.
     
  23. Mr48chev
    Joined: Dec 28, 2007
    Posts: 30,830

    Mr48chev
    ALLIANCE MEMBER

    Unless you register it out of state and then risk getting nailed for doing that by the tax brigade it's probably best to just pony up the 167 and fight for a refund.

    You can figure that everyone with a "collector" car in the state got hit with similar tax and the state is counting on 50% not fighting it. The other 50% are like you and have a car that the actual resale value is far below their assessed value.
     
  24. Engine man
    Joined: Jan 30, 2011
    Posts: 3,480

    Engine man
    Member
    from Wisconsin

    I've proposed a law that any taxing entity that puts a value on a piece of property would have to purchase the property for 80% of what they set the value at if the owner wants to sell. This would lead to more realistic values. This was in response to real estate values but it would work for personal property too.

    The problem with book values is that they include the show cars that sell for a big price and up the average price of a model that has very few purchased in a year.
     
  25. RagtopBuick66
    Joined: Dec 12, 2011
    Posts: 1,182

    RagtopBuick66
    Member

    I LOVE that idea. Makes perfect sense, though it might wind up bankrupting the state. You wanna move down here and run for office? We need someone whose head is planted firmly on their shoulders, and not plugged so far up their asses that they can see the backs of their own teeth.
     
  26. Engine man
    Joined: Jan 30, 2011
    Posts: 3,480

    Engine man
    Member
    from Wisconsin

    If they assessed at what it would actually sell for and purchased it at 80% of that, they could make 20% on everything they bought.
     
  27. Kan Kustom
    Joined: Jul 20, 2009
    Posts: 2,703

    Kan Kustom
    Member

    Now I see why Elvis lived there with all is stuff except for the real estate!
     
  28. mailerguy1
    Joined: Jul 26, 2011
    Posts: 251

    mailerguy1
    Member

    When I brought my car up from North Carolina I was met at the border with a 1/2 hour of paper work and a HST bill for $235.00. When I went to register it in Ontario I paid another $170.00 (or so) just to get a piece of paper. When it is finished I am going to plate it with "year to car " plates, for that privilege it will cost around $250, plus all of their hoops. I then have to worry about the "pollution police" because of the engine I have in it. Canada aint so good. at least after you paid they leave you alone. :eek:
     
  29. RagtopBuick66
    Joined: Dec 12, 2011
    Posts: 1,182

    RagtopBuick66
    Member

    LOL, touche!
     
  30. Sheep Dip
    Joined: Dec 29, 2010
    Posts: 1,572

    Sheep Dip
    Member
    from Central Ca

    That's because they know you need every penny you can muster for firewood in the winter! LOL: D But on the serious side that's a hell of a deal.
     

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