thutch79

Anyone in Mass dealt with this before? I bought a 73 coupe for $5000. I'm getting it titled and the RMV wants to charge me sales tax on 12K because that's what NADA says it's worth. 5K is very much fair market value for the condition of the car, so I'm finding the additional $500 in sales tax tough to swallow. The woman at the RMV said I can pay it now, then file an abatement. Anyone done this before? What arguments work?

KALAWAY

How can they charge you sales tax based on more than what you paid? I guess that's your exact question, just worded different. Life is just one big ordeal of folks trying to separate you from your money. Is there no honesty or common sense in the world? I can see them charging property tax based on a different value of the car but not sales tax. Let us know if you beat this and how.

mrstingray

Yep that is how it is in Taxachusetts They don't care what you paid they go by nada book value. They charged me tax on 24K which was low value in the guide and cost me 1500 bucks to register etc. Mass sucks

72LS1Vette

Mass. charges sales tax based on their own evaluation tables. That's to avoid people coming in with a $300.00 bill of sale for a $15,000 vehicle.

When I titled the 72 I had an $8,000 bill of sale and they used that for the tax. This was several years ago so they may have upped their evaluations. I suppose you could take pictures of the car and file for an abatement. Good luck with that.

For reference, I titled a 79 basket case that I paid $400.00 for and they charged me $300.00 sales tax.

You may have noticed that the Registry people don't give a $hit and aren't interested in hearing your arguments. If you want the title you have to pay up front and try to get money back later.



Rick B.

mrstingray

No one told me about an abatement. I will check into it though.

vettebuyer6369

These applications vary from state to state. In Illinois when someone files an application for title, they say what they paid on the tax form. It is matched against NADA and if the difference is substantial, they pay the extra tax. If you disagree, you have to show a bill of sale, or you have a certifed dealer appraise the car to adjust the bill.

People everywhere constantly fraudulently try to cheat the states on correct tax and it costs the states a ton of money. Its unfortunate that so many people trying to steal tax money causes everyone else such inconvenience.

So, go to your states DMV website and look for the statute on that tax application, or rules and regulations. The abatement may be the only way, but see if you can get it waived first.

Tim H

How does it cost the state any money they had nothing to do with in the first place?
Here in Indiana $500 or less is the popular price for everything!!!

mrstingray

Tim I believe he meant there is a potential loss of tax revenue there. It used to be you could just show a bill of sale and that was good enough, but they began to realize that people would make up a price to pay next to nothing for their excise tax etc. I had my bill of sale but it didn't matter and had to pay for the higher tax price on the car. I also get to pay a yearly excise tax bill on it which is 5.00 lol and that is the minimum allowed.

Easy Mike

They do the same thing in Kentucky: use the actual sales price or blue book value, which ever is higher. In Kentucky, you have the opportunity to show the vehicle is worth less than the blue book value. If that is accepted, they use the sale price.

Sales tax is not the gift that keeps on giving. You only pay sales tax once. Property taxes on the vehicle keep coming around to see you.

centralcalvette

This sort of thing happens when the state F's it's citizens and the citizens F them back. It's a good idea to take good photos when you buy your car, especially if it's rough, needs work, or bought cheap. Here in Cal years ago, a co-worker got a tax bill after the fact beacuse the state decided he wasn't honest about the purchase price. Luckily he took photos of the bad paint and other faults, he proved his case and won.

thutch79

I'll try the abatement route. I understand that the state needs to protect themselves from people filing bogus bill of sales, but the process should be much easier to validate the actual sale price or car value. You should see the stupid form they want me to fill out for the abatement. It's obviously designed to deter people from even trying. I'm hoping someone stumbles across this thread that has gone through this process and can share a success story of getting it abated to the correct tax.

Luckily for me, my local excise tax doesn't use NADA. I believe they have a formula and bottoms out at a certain number of years at a pretty reasonable rate. At least I think that is the case. Hopefully it doesn't escalate back up again for collector cars. The good news is it will take me so long to restore, I won't have to pay that for years!!!

billcarson

in nys if you nibble on the po's ear a bit he will give you the car and you will pay no tax.we get f#$%ed on everything in ny so they allow this to let you live a little.

Scottd

I just got soaked for 650 bucks tax on mine....even if the owner had 'given' it to me, the DMV has a form for that too that the seller has to fill out. (which greatly complicates a sale....) Basically if its not at or above current value, you need a seller signed statement saying it was a gift....very grey area to ask someone to do...

joewill

know and understand your state's laws before you buy, whether you buy in state or from out of state. if you are a seller, know your buyer's state's laws too so you don't sign your life away just to sell a car. protect yourself.

so you have to pay a appraiser 400$ to save yourself 400 in taxes.. I think I would still do that just on principle...

I will never buy a new car again.. I can just about put a new engine in my car for the price of just the sales tax on a new car...

scottyp99

An abatement? LOL!!!!! Don't spend that money till you get it, bud, The Registry here in MA is worse than the mafia. If you don't give them what they want, they will take your license, or not allow you to renew your registration, or even cancel it. It's just a fact of life here in The People's Republic of Massachusetts.


Scott

thutch79

It's actually the department of revenue that the request goes to. Not much better, I know.

qwank

yup, in Mass they go by book value or price paid, which ever is higher. Then when you insure it, if it gets totaled, you hardly get anything. its a no win state.

In NH, there's a town fee and a state fee since there's no sales tax. on fee is based on GVW and the other is based on price the vehicle sold for new. You have to pay this every time you renew your registration, but the percentage drops every year.

Vampyre

I'm not sure, but charging tax twice on the same car seems to me, that the state is cheating people out of money.

After all Sales tax was paid when the car was purchased new.

sakins.02vert

Taxachussets man. We love it!!!

BKbroiler

Any state that kept electing Ted Kennedy to the senate for 30 years straight deserves all the taxes they get.