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1/22/2020 12:12:56 PM
Posted: 7/22/2008 11:27:44 AM EST
Been awhile since I have purchased a vehicle. Say I buy a used vehicle from a private party, and they record that the sale was made for $1,000 on the title transfer form that is attached to the title, or makes up a receipt that says the same. When I go to the DMV to transfer the title am I taxed on the value of the sale or do they come up with some sort of "fair market value" to base the tax on?

Thanks
Link Posted: 7/22/2008 11:32:58 AM EST
IIRC, it used to be based on the purchase price but so many people got their cars for $1 that they changed it to a FMV type of structure. Been several years though so YMMV
Link Posted: 7/22/2008 11:38:37 AM EST
Link Posted: 7/22/2008 12:37:20 PM EST
There is an additional form that the seller can sign stating why the sales price of the vehicle is lower than the fair market value, usually damage, high miles, etc. Don't be a stooge, step up and pay the tax.
Link Posted: 7/22/2008 2:44:54 PM EST
Or if it was from a family member, its free for 1 transfer. I have had that form filled out by the seller once before. They tried to charge me taxes on an 11K truck that I actually paid 7K for. I refused to pay the tax. they got a few of their supervisors overthere prety quick. I was being a bit demanded.
Link Posted: 7/22/2008 3:01:02 PM EST
Last two transfers I have done were a free camper off CL. No problem there.

The next one was a motorcycle and they accepted the sale amount from the bill of sale.
Link Posted: 7/22/2008 3:16:01 PM EST
Just bought a car yesterday. Seller put on the title that it was a "gift". Title transfer cost us $25

Link Posted: 7/22/2008 3:37:53 PM EST

Originally Posted By AMESO:
There is an additional form that the seller can sign stating why the sales price of the vehicle is lower than the fair market value, usually damage, high miles, etc. Don't be a stooge, step up and pay the tax.


Your kidding right? Everytime I bought a used private party car in WA I've been told the FMV of the vehicle is nearly twice what I paid. This was especially annoying when I had bought a truck from the State at auction. The state uses the "high retail value" it seems to assess the sales tax regardless of what you actually paid or the actual market value, i.e. what shit sells for , not what KBB.org says they should.
Link Posted: 7/22/2008 3:43:32 PM EST
My wife worked for the DOL, this issue is the #1 complaint. Just remember not to kill the messenger. The Gals and Guys behind the counter don't make the rules and probably hate it worse than you. If you are civil most likely they will explain a way to get the true value in the transaction.

If you act like a asshole they will not. AND I DON'T BLAME THEM.

The pol's in Oly are the one's that should feel your wrath. JMHO
Link Posted: 7/22/2008 7:33:07 PM EST

Originally Posted By NWRed:

Originally Posted By AMESO:
There is an additional form that the seller can sign stating why the sales price of the vehicle is lower than the fair market value, usually damage, high miles, etc. Don't be a stooge, step up and pay the tax.


Your kidding right? Everytime I bought a used private party car in WA I've been told the FMV of the vehicle is nearly twice what I paid. This was especially annoying when I had bought a truck from the State at auction. The state uses the "high retail value" it seems to assess the sales tax regardless of what you actually paid or the actual market value, i.e. what shit sells for , not what KBB.org says they should.


No, I am not kidding. Perfectly legal and proper way to take care of the transaction, if you did indeed pay $7M for an $11M truck..
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