new law in effect

[dwsdad]

I just heard about a new law that was passed (evidently very quietly) that states that when an individual sells anything, the buyer has to pay taxes based on the VALUE of that item, not what he paid for it. So, for instance if I where to sell my LT for $3000, but the book value (KBB or NADA) says it's really worth $10,000, the buyer would have to pay tax on that $10,000 - not what he actually paid for it. That stinks!!!

[astuber]

I found this on the internet"

The so-called "liar's affidavit" law requires that buyers pay sales tax on 80 percent or more of a used vehicle's retail value, regardless of the actual purchase price.
Under the new law, a person who spends $6,000 on a used car with a retail value of $10,000 would still pay taxes based on 80 percent of the retail value, or $8,000. With the state's 6.25 percent motor vehicle tax rate, that means taxes of $500 rather than $375.

The law covers cars, trucks, motorcycles, recreational vehicles and trailers.

The law does not apply to used-vehicle sales at dealerships. Dealerships will continue to calculate taxes based on the sales price and not the retail value.

Buyers who disagree with the state's valuation of a used vehicle can challenge it by getting an appraisal from an auto dealership or a licensed insurance adjuster within 20 working days of the sale. The appraisals are expected to cost from $100 to $300.

[dwsdad]

Still, even 80% is a ripoff. Looks like the auto dealers lobbist worked hard on this one.

So, I wonder what kind of "gift" tax there is now?

[George_S]

AFAIK, New Jersey's had that rule forever. Although, in NJ it's "market value" period, not 80%. When I was in High School, a buddy and I traded cars outright, no money at all changed hands. When I filled out the title and registration application I challenged the tax requirement. I lost, and we both had to pay tax on each auto's market value.

[ibbones]

I heard about it also. I think it is already in effect as of today.

[Dick]

I found this on the internet"

The so-called "liar's affidavit" law requires that buyers pay sales tax on 80 percent or more of a used vehicle's retail value, regardless of the actual purchase price.
Under the new law, a person who spends $6,000 on a used car with a retail value of $10,000 would still pay taxes based on 80 percent of the retail value, or $8,000. With the state's 6.25 percent motor vehicle tax rate, that means taxes of $500 rather than $375.

The law covers cars, trucks, motorcycles, recreational vehicles and trailers.

The law does not apply to used-vehicle sales at dealerships. Dealerships will continue to calculate taxes based on the sales price and not the retail value.

Buyers who disagree with the state's valuation of a used vehicle can challenge it by getting an appraisal from an auto dealership or a licensed insurance adjuster within 20 working days of the sale. The appraisals are expected to cost from $100 to $300.
Damn - it's time to git a rope!!! :mad:

[zimbazi]

YIKES !!:mad: what is next ? :p


:histerica Just shoot me when they start limiting us on the amount of coffee and donuts !! for what they think is healthy.......?

[munson]

I heard about it also. I think it is already in effect as of today.
http://www.cpa.state.tx.us/taxinfo/taxpubs/tx98_807.pdf
They finally caught on to the fact that buyers were under representing the purchase price on private purchases.

[blouw]

YIKES !!:mad: what is next ? :p


:histerica Just shoot me when they start limiting us on the amount of coffee and donuts !! for what they think is healthy.......?

OK, OK.
Who is going to fess up about teaching Jeff how to use smilies?

[dshealey]

I just heard about a new law that was passed (evidently very quietly) that states that when an individual sells anything, the buyer has to pay taxes based on the VALUE of that item, not what he paid for it. So, for instance if I where to sell my LT for $3000, but the book value (KBB or NADA) says it's really worth $10,000, the buyer would have to pay tax on that $10,000 - not what he actually paid for it. That stinks!!!

It has been somewhat like that in CA for years. If you understate the sale price too much below blue book, they will automatically use blue book value to charge you sales tax before you can license the vehicle. You can get away with a little devaluation, but not much.

I think many states caught on to the understating years ago, some are just now turning on the light bulbs over their heads. :D

[early1]

Damn - it's time to git a rope!!! :mad:
NAW somthing With FirePower, Like the USS Missouri, so as we kin lob a few VW sized shells down there.
Maybe, just maybe they might git the message then,---but not before.

[dwsdad]

Where's Kinky when we need him????

[katnapinn]

OK, OK.
Who is going to fess up about teaching Jeff how to use smilies?
Brian I'll take the blame for that one SORRY :histerica

[grifscoots]

Yeah! Screw this! Vote Kinky!!!!

[cfell]

The real problem as I see it, we need to cut off their funding.

I hope to never ride the "toll" roads.. I hope to never spend another dollar in tax... of course THEY won't let that happen! But I'll never quit trying.

[Dadderatter]

Personally I think everyone should pay top dollar in taxes. How else are guys like me who thrive off the system suppose to live. I can't have that big screen TV if you don't kick in a few extra bucks.

Besides you'll be happy to know that while your slavin at the ole work place I'm out riding the bike living the good life.

:histerica

[UncleRock]

I sold a pick up to one of my guys. They just made me fill out a paper stating why it was only $100.00
He paid the tax on that.
My statement
" I'm tired of driving him and his bike to the track for every test and tune night. So I sold him the truck cheap"
Rock