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Sales Tax on a Private Purchase

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  #16  
Old 12-01-2009, 10:12 PM
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Originally Posted by hrm
when it comes down to it, i will pay the sales tax on the full sales price, if only for the specter of fraud and the legal issues. In this economy i am certain the government will come after anyone who tries to skirt paying a lower rate.

Still, it is infuriating that a car continues to get taxed heavily after each transfer of ownership.
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  #17  
Old 12-01-2009, 10:16 PM
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Technically speaking (don't hold me to this - consult your tax lawyer before you decide to do this) you can pay the car at one official price, but accessories such as aftermarket wheels and other aftermarket parts (as long as you have receipts) you can leave out. But it won't turn out to more than a few hundreds and hardly worth the effort. However, if everyone did it, it would be a great impact against this fraudulent taxation thing that somehow some politician managed to legalize.
 
  #18  
Old 12-01-2009, 10:30 PM
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Originally Posted by Taiwanese
In Cali, if you state lower price at DMV then something happen to the car (totalled?), will insurance company just pay what you reported to DMV minus depreciation since DMV date?
Insurance company do this:
- Check market value by picking out a "random" (usually they pick high mileage ones) selection of cars of the same model and year from DMV records, that was sold recently in the local area (ususally like 80 mile radius) - so if they accidently pick yours and you shot the price down, there you go on your coverage should something happen.
- They check miles and condition of your car + the manufacturer option list and whatever extras you may have added on policy yourself
- They adjust for your lower miles and better condition + equipment options as stated by manufacturer (they have this info)

However, high mileage cars tend to drop more than the mileage adjustment is worth, this means you have to find:
- Actual similar cars listed.
- Low mileage cars and adjust pricing from that view (gives better pricing than insurance companies high mileage examples, since cars of this type lose price more than the compensation since harder to sell with high miles and prices are dropped when they sit long)

Then refer to your state's regulatory dept for insurance - if you don't they will just laugh at you - if you do they know they will get in trouble if you are right - and you are if you do your research well. This gives a second evaluation which actually may be pretty close to KBB if you're lucky.

So yeah, put a low number on your sales documents and it will affect everyone with a similar car in your area, in case of theft or accident.
 
  #19  
Old 12-02-2009, 05:26 AM
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Originally Posted by keninirvine
California is one of the most predatory tax collecting states, and yet the state STILL has huge annual budget deficits in the tens of billions of dollars. Great governance eh? Imagine how much is being collected in taxes in a state with
Governance got nothing to do with it. Get rid of all the ballast who settled in in CA feeding from government money, using schools, hospitals and other services and not contributing back.

It is a very simple issue, actually, simple balance between population that pays taxes and produces income and other part of population that exists in 'grey' area. It is not even as much as illegals contribute to that, but mostly all those closed communities with strict cash money workflow, not paying any business taxes, etc. Until overall head count in those communities was below head count of normal middle class working folk - balance was OK, now it simply shifted in other way beyond any logical limits and cannot be recovered anymore. 2 people who work cannot provide enough tax doe for 10 people who choose not to pay taxes - it is very simple rule, and no government can fix this.
 
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Old 12-02-2009, 02:53 PM
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Originally Posted by CYi1
Maybe Georgia is different. I sold a car to a cousin and bought a couple cars from private sellers without any tax involved. I was under the impression that private seller sales weren't taxed. Maybe I'm wrong
No, you are correct: GA is different. There are no taxes dues when buying a vehicle from a private/individual seller.
 
  #21  
Old 12-02-2009, 03:08 PM
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Originally Posted by diro
No, you are correct: GA is different. There are no taxes dues when buying a vehicle from a private/individual seller.
I'm moven ta GA.....
 
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