Sales tax on private vehicle sales ETA: question about signing over title

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[ARCHIVED THREAD] - Sales tax on private vehicle sales ETA: question about signing over title

Posted: 9/13/2004 6:27:03 PM EDT

I'm selling my Harley, and it just dawned on me (having never sold a vehicle before). Am I going to have to pay (or collect?) sales tax on this thing? I'm asking $7k, and at 6% that's $420! That puts a serious damper in things.

Posted: 9/13/2004 6:29:22 PM EDT

[#1]

In VA the sales tax is collected when the new owner acquires their tags and registration.

Posted: 9/13/2004 6:30:06 PM EDT

[#2]

In my experience, the burden of tax is placed upon the buyer, which is collected when they register the vehicle.

I am willing to bet it is the same in your state.

Posted: 9/13/2004 6:30:09 PM EDT

[#3]

Buyer usually has to pay

Posted: 9/13/2004 6:32:40 PM EDT

[#4]

In GA there is no sales tax on private vehicle transactions. In FL your mileage may vary.

** An after thought, call a local car dealer and ask them, they will know.

Posted: 9/13/2004 6:39:44 PM EDT

[#5]

In PA buyer pays when he transfers title. They also bring out the blue book and if you claim the vehicle was sold for significantly less than blue book they make you fill out and sign a form stating why. "Because paying sales tax on something that already had sales tax charged on it is fucking criminal" is not a valid reason.

Posted: 9/13/2004 6:43:35 PM EDT

[#6]

Quoted:
In PA buyer pays when he transfers title. They also bring out the blue book and if you claim the vehicle was sold for significantly less than blue book they make you fill out and sign a form stating why. "Because paying sales tax on something that already had sales tax charged on it is fucking criminal" is not a valid reason.

Yeah think of cars that are sold 5 times the gubberment is bringing in some serious cash.

Posted: 9/13/2004 6:46:11 PM EDT

[#7]

I was audited for tax paid on a p2p vehicle sale. DMV thought the set of wheels was worth $6000, I paid $2000. They sent me a demand to either pony up proof that I bought the vehicle for $2k, or cough up 6% of $4000. Now, I got the car pretty cheap, but it wasn't worth over $4k. I sent them a signed letter from the seller, which seemed to shut them up.

Posted: 9/13/2004 6:47:46 PM EDT

[#8]

Quoted:
In my experience, the burden of tax is placed upon the buyer, which is collected when they register the vehicle.

I am willing to bet it is the same in your state.

It is... I have sold many vehicles to private parties. If the guy you're selling it too seems OK, then list the price on the title lower than what he paid. The buyer only pays taxes on the value written in the selling portion of the title.

Posted: 9/13/2004 7:03:13 PM EDT

[#9]

I can't believe nobody has complained about the tax issue. The GOV is screwing us hard and nobody seems to care. The friggin bike was taxed when it was sold as new and that should be the end of the tax but oh no they want more.
We are a bunch of pussies to let the gov run over us like that. So go on watch that big screen TV while sipping on the over taxed beer and cruising in the SUV that uses tons of gas (mostly taxed) while our fine gov makes up more tax laws.

To your question the buyer will pay the illegal tax when he/she gets plates unless your a car salesperson.

Posted: 9/13/2004 7:19:54 PM EDT

[#10]

Quoted:
I can't believe nobody has complained about the tax issue. The GOV is screwing us hard and nobody seems to care. The friggin bike was taxed when it was sold as new and that should be the end of the tax but oh no they want more.
We are a bunch of pussies to let the gov run over us like that. So go on watch that big screen TV while sipping on the over taxed beer and cruising in the SUV that uses tons of gas (mostly taxed) while our fine gov makes up more tax laws.

To your question the buyer will pay the illegal tax when he/she gets plates unless your a car salesperson.

Ummmm... scroll up 4 posts from your original.

Posted: 9/13/2004 7:21:03 PM EDT

[#11]

Buyer pays or doesn't pay tax based on his own state's rules...

So if I buy a bike in IL, I pay WI state tax...

We don't do the blue book thing here, as I bought a bike for $65 (inoperative), put it on the form as 65 once I got it running, and no one cared...

Posted: 9/13/2004 9:37:21 PM EDT

[#12]

Buyer pays on registration here in CA with a few exceptions on sales between family members. And the list of family members has expanded slightly.

Posted: 9/14/2004 12:50:49 AM EDT

[#13]

Quoted:
It is... I have sold many vehicles to private parties. If the guy you're selling it too seems OK, then list the price on the title lower than what he paid. The buyer only pays taxes on the value written in the selling portion of the title.

I'd be careful about this. In some states this is a felony.

Posted: 9/14/2004 12:53:41 AM EDT

[#14]

Yes in FL the buyer pays the tax when he goes to get tags for the bike, but a common practice in FL is to write in $1 in the sale ammount so he doesnt have to pay the big tax

Posted: 9/14/2004 1:04:13 AM EDT

[#15]

Quoted:
I was audited for tax paid on a p2p vehicle sale. DMV thought the set of wheels was worth $6000, I paid $2000. They sent me a demand to either pony up proof that I bought the vehicle for $2k, or cough up 6% of $4000. Now, I got the car pretty cheap, but it wasn't worth over $4k. I sent them a signed letter from the seller, which seemed to shut them up.

In NY you need a receipt from the seller signed or they try to charge you, not just blue book value, but some number they get from somewhere.

Posted: 9/14/2004 1:18:16 AM EDT

[#16]

Quoted:
Yes in FL the buyer pays the tax when he goes to get tags for the bike, but a common practice in FL is to write in $1 in the sale ammount so he doesnt have to pay the big tax

That used to work (30years ago), but they're more stringent these days.

"For vehicles purchased from a private person the 6% sales tax is based on the book value (NADA for vehicles seven years old or newer) or the purchase price, whichever is higher. When the vehicle is more than seven years old, the bill of sale price is used to calculate sales tax. If no bill of sale is shown, then book value will be used"

Posted: 9/14/2004 3:11:27 AM EDT

[#17]

Thanks guys, in retrospect that makes more sense.

Second question; how do I sign over the title? I do hold the title on the bike (as opposed to a bank). I am listed as the registered owner, with Harley Credit listed as the 1st lienholder (and they have since been paid off). At the bottom I see a place for signature and printed name of seller, is this me? I kind of would have thought that part would be the original HD dealer.

Also, shouldn't these signatures be notarized? I don't see a place for that either.

Posted: 9/14/2004 3:15:46 AM EDT

[#18]

In NY: seller signs over the title to buyer, not notarized, buyer takes title to Department of Motor vehicles and register in buyer's name name, seller turns his plates in to DMV.

If there is a lien on title then seller has to give the buyer the statement from the bank/finance company showing that the lien is paid off so that when the buyer registers vehicle it shows as having no lien. I assume you will need proof of the lien being paid off before a buyer will complete the transaction. You should have gotten a "lien release" or something like that, when you paid the loan off

Posted: 9/14/2004 5:39:49 AM EDT

[#19]

Quoted:
You should have gotten a "lien release" or something like that, when you paid the loan off

Hmmm, I think I did. I'll have to look for that. Good point.

Posted: 9/14/2004 5:42:58 AM EDT

[#20]

You can get another, though hopefully it was a local bank, a big national bank or finance company may take a few days and charge you for a new one. I've run into this with buying used bikes before, lots of guys never bother to file the lien release and get a new title without the lien on it, so when they go to sell it looks like there is still a lien on the bike

Posted: 9/14/2004 5:47:20 AM EDT

[#21]

Quoted:
lots of guys never bother to file the lien release and get a new title without the lien on it,

I guess this is something I should do with my DMV?

God I hope not, being in an urban area makes trips to the DMV worse than going to the dentist to have an enema.

[ARCHIVED THREAD] - Sales tax on private vehicle sales ETA: question about signing over title

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