Build Your Own Arcade Controls Forum
Main => Everything Else => Topic started by: JoyMonkey on April 20, 2005, 09:20:04 am
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My father in-law is giving me an old Volvo and says that there's some way of giving it to me for $1 that means I wouldn't have to pay sales tax when I go to register it.
I thought that everytime a vehicle switches hands, a sales tax based on the cars blue book value has to be paid. Anyone know anything about this stuff?
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You can always say it's a gift. I did this in NJ and didn't have a problem.
If you really want to fly under the radar, make it $100 and pay the $6 (here in NJ)
Art
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Well, it IS a gift. But I think the Massachusetts RMV charges 5% of the estimated blue-book-value of the car.
I guess I should just call my insurance agent.
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In Oklahoma if the title transfers to a relative there's no tax.
-S
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I just called my insurance people and they said there's a gift form to fill out that means no tax.
You'd think I'd call them first before posting here, wouldn't you? Funny how my brain works these days.
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My father in-law is giving me an old Volvo and says that there's some way of giving it to me for $1 that means I wouldn't have to pay sales tax when I go to register it.
I thought that everytime a vehicle switches hands, a sales tax based on the cars blue book value has to be paid. Anyone know anything about this stuff?
I've never bought a used car from an individual, but I've sold a couple and I'm thinking about selling my current one when I upgrade (instead of giving it away as a 'trade in') and was pondering this just the other day.
So how does this work? Does the seller have to charge the buyer whatever the state sales tax is, or is it paid directly to the state by the buyer when the title is transferred?
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Tax is paid to your DMV when you go to register the car. Here's how it works in Massachusetts:
To Register and Title Vehicles Purchased from a Non-Dealer:
1. You must go to a licensed Massachusetts insurance agent to obtain an active insurance policy and have the agent complete, stamp and sign an Application for Registration and Title (RMV-1).
If there is a lien against the vehicle, please make sure the lienholder information is complete and accurate.
2. After verifying all information, sign the RMV-1 application. Along with the completed RMV-1 application, you must submit one of the following documents:
* The previous owner's title, if a titled vehicle (model year 1980 and newer), or
* The bill of sale and proof of last Registration, if a non-titled vehicle.
3. If presenting the previous owner's title, be sure the date sold, the odometer reading and the purchase price have been completed on the back. The previous owner(s) and you must sign the back of the title.
4. Take the completed RMV-1 application and supporting documents to the nearest full service RMV center.
The sales tax for a private sale is calculated at 5% of the purchase price or the National Automotive Dealer Association (NADA) trade-in value, whichever is higher.
After completing the transaction, you will receive a registration certificate, new plates and a year of expiration decal for the rear plate. The title will be processed and mailed in approximately six (6) to eight (8) weeks. If you have a loan on the vehicle, the title will be mailed directly to your lienholder.
You must obtain a vehicle inspection sticker within seven (7) days of the registration date.
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In Oklahoma if the title transfers to a relative there's no tax.
Same deal in Illinois.
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Around here when you sell a car privately, often the buyer will ask you to leave the selling price blank, or put in a lower amount.
Hopefully the "buyer" isn't from a state agency.
Art