Hey Guys,

Sorry for posting here, I had no idea where else to do this. So I chose the section I spend most of my time.

I am going to pick up my bream car, 1980 Corvette, in a week. I have spent some time on the phone with the BMV and they want to charge me a 7% sales tax on the car.

I think this is absurd for a 30 year old car. So I wanted to see if anyone knows how to avoid extra costs at the license branch besides the simple plating and title transfer; which was quoted for about $70 for a year.

Thanks.

 

Unfortunately, I don't think there is much you can do... A person is selling a car. You are buying the car. The DMV wants their registration and the tax assessor wants their tax. Your registration could be a reduced amount due to the fact the car is 30+ years old and could be considered an antique (atleast in Texas it would be) but the tax asssessor probably doesn't have a tiered tax rate based on age.

You could try to contact the tax commissioner's office and see if they could shed some light.

Good luck, and this thread is worthless without pics... LOL...

Don

 

[QUOTE=BigDinTexas;7753590
Good luck, and this thread is worthless without pics... LOL...

Don[/QUOTE]

Sorry, I didn't think they would be needed for the general question. If more people want to see it them to answer the question, I will get them posted. If you are just curious, send me a PM and I will send you images.

 

Nah, I just like eye candy... 'Vettes are great for my addiction when 'Stangs aren't around... LOL...

Don

 

No way around paying the tax portion. In many cases, if a private party sale, the buyer and seller may agree to report a lower sale price than is actually being paid, for instance if price is 10K, you still pay 10K, but both of you only report the sale for 4.5K. You can't go too low or the dmv will start asking questions, also if you are buying it with a loan, this method doesn't work because you have a third party involved that won't participate. Also a no-go for a dealer sale.

 

This is certainly an option... However, I think we all would be remiss if we didn't state that no one here condones such action and certainly are not encouraging you to commit tax fraud as that would be irresponsible... However, we all know that this does happen. I just don't know anyone personally who has done this.

Don

 

So a private sale in TX is subject to sales tax? That sucks. Here in AZ, the sales tax is not charged for private party sales of vehicles or private property. Only if you buy from a registered business do you pay sales tax.

At registration the fee they charge is based on the depreciated value of the car and goes down every year.

Example: Brand new car - 35K paid, registration would be about $600, for the second year registration, the car loses X amount of value (lets say its valued at $30K) so the registration goes down to like $525 and so on.

Don't know who they would do a classic car.

Edit: Lord Ripper I didn't realize you were in Indiana. If you buy the car in Texas and the entire transaction is carried out in Texas, then Indiana cannot charge you sales tax on a business transaction that occurred outside of their state especially from a private party.

Just go to the online BMV and and register a new car. Forget talking to a BMV person. http://www.in.gov/bmv/2350.htm

 

I think they can in Indiana. Because then it becomes a "use" tax because the vehicle is being registered for use in IN.

 

Oh...'use' tax. AZ I think had that on the voting books a few years ago and it got clobbered by voters as in "NO".

Edit. To clarify, AZ does have a use tax but its for businesses to business or resellers, not Private sales.

 

Ouch... That must sting... Registration for cars in TX are rather uniform... I have a 2010 Explorer Eddie Bauer that I pay the same amount in registration as I do my 'Stang... only $64/year... If you are disabled vet it's like $3/year
...
Don