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Bought Car in Ca. Cheaply, Now Mn. Wants More Tax Money!! (Help)
Me | 12/8/2012 | Me

Posted on 12/08/2012 3:50:23 AM PST by LiveFreeOrDie2001

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To: Roccus

“Ran it for a year with the CA plates?”

Nope, they gave me Mn. plates & tabs... Hmpf.


41 posted on 12/08/2012 5:30:38 AM PST by LiveFreeOrDie2001
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To: WorksinKOP
Same in WV. I paid that on my previously registered and taxed in NY car. I avoided paying NY tax on my new truck purchased in NY however, by using my WV address and just getting transport plates. Then paid ONLY the WV tax when I registered it here.
42 posted on 12/08/2012 5:36:27 AM PST by Roccus
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To: LiveFreeOrDie2001

Then this extra charge is on a renewal?


43 posted on 12/08/2012 5:40:28 AM PST by Roccus
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To: Roccus

“Then this extra charge is on a renewal?”

Nope, on valuation. They (independent motor vehicle place, not state of Mn.) looks at the paperwork from Ca. They look up the value and charge me the difference. I went round-round with him and he understood... but he said we’ll submit it, but I the state of Mn. will not give you the Title. We tried, then the State said I needed to pay more.

I called the State and discussed it with them, but they say it’s in their statutes.

What bunk. Anything else you pay Tax on what you buy.

So, if we buy tires on sale, we pay Tax on the sale price, right?? We do not pay Tax on the full price, we pay Tax on the PURCHASE PRICE!!


44 posted on 12/08/2012 5:46:38 AM PST by LiveFreeOrDie2001
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To: LiveFreeOrDie2001

Taxation is about revenue, not about fairness. (“Because you millionaires and billionaires, at some point, surely have enough money.”) In 1992 my father sold me a 1988 Crown Victoria with 8,000 miles on it for $3,500. The state would not license the car because I had bought it too cheaply. I had a cancelled check and they said that was no good. However, I asked them what the process was to verify the price and they grudgingly told me that I could have my father sign a sworn statement and that would do.

Ask them what the process is for verifying a price. Also, you might try a different office, one where the clerks are really, really busy.


45 posted on 12/08/2012 5:47:09 AM PST by Gen.Blather
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To: LiveFreeOrDie2001

Yes. Sounds right. PA does same thing.


46 posted on 12/08/2012 5:47:27 AM PST by Boxsford (God Is.)
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To: Jacquerie

Unfortunately serfs have learned to play along quietly.


47 posted on 12/08/2012 5:51:45 AM PST by Boxsford (God Is.)
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To: LiveFreeOrDie2001; dinodino; mykroar
This sounds like a fairly standard transaction. Each State will have its own book of values for vehicles. This is to prevent buyers from avoiding sales tax by constructing sham transactions at very low purchase prices.

Got a ton of flack, mainly because of parents “selling” cars to their kids for $1 - and then being hit with full value sales tax.

And that is exactly why states started doing this and it is nothing new, this has been SOP for a long time. Most states base the sales tax on the fair market value and not on the actual sales price because too many people were playing the system by doing these $1 transactions between friends and relatives or buying and selling used cars for an on the books transaction for a lot less than the car was actually worth with the difference being paid under the table in cash or purchasing cars from states with no or much lower sales tax. FWIW, this falls under “Use Tax”.

I live in PA with a 6% sales tax. If I drive to DE a state that has no sales tax or to a state with a sales tax of less than 6%, and I purchase, clothes, furniture, household goods, electronics, alcohol, anything and bring those times and use them in my PA residence, technically when I file my PA income tax return, I’m supposed to claim those purchases and pay the Use Tax on the difference. The same applies to on-line purchases. Do most people do this? Probably not. Are you “supposed” to? Technically, yes. Most people do not claim or pay Use Tax because it’s not likely they will get caught for not doing so. Car purchases OTHO get you because of the necessity to register and license the car in your state of residence.

I understand that if you move from one state to another and your car was purchased more than six months previously, when you register the car in your new state, sales tax does not typically apply but it varies from state to state. Some, but not all states provide exemptions for active duty military personnel.

If your car was purchased recently (less than six months for example) or you purchased a car out of the state of your residence, you typically pay the difference in what you paid in sales tax with proof the tax was paid, to your previous state of residence and the sales tax of your new state of residence based on the FMV. This varies from state to state and some states will tax you regardless, but often you can file a form proving that sales tax was paid to the previous state, claim a credit for that against any sales tax levied in your new state and if necessary, file a form that substantiates that your car is well below their estimated “blue book” FMV.

But granted, this is a PITA.

48 posted on 12/08/2012 5:54:23 AM PST by MD Expat in PA
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To: LiveFreeOrDie2001

Sure they can do it.

The Government can do anything.

Our Government here in Maryland does the same thing.

It used to be you paid the tax on what was listed as the sales price. Now they go to a Blue Book Price and you pay the taxes on that.

You ask can they do it? Like I said the Government can do anything they like.

Ask Justice Roberts-—call it a tax and anything goes.


49 posted on 12/08/2012 5:55:16 AM PST by Venturer
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To: LiveFreeOrDie2001

OK, now I understand....but you’re still screwed.
Same thing here in WV. Had to pay extra to get a WV title on my 10 year old, NY registered and taxed car......because the milage was “too low”, they charged me sales tax on “valuation”.


50 posted on 12/08/2012 6:09:43 AM PST by Roccus
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To: LiveFreeOrDie2001

You might want to contact your local office of the American Automobile Association. There was no reason to register the car in California before taking it home. For all California knows, the owner of the car drove it to you!
For awhile California was charging out of state cars brought in. It was reversed and people got their money back.


51 posted on 12/08/2012 6:30:03 AM PST by Excellence (9/11 was an act of faith.)
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To: LiveFreeOrDie2001
I bought my Audi in a city other then where I live. The sales tax in my city is a full 1% more then in the city where I bought the car. I had to pay the higher sales tax which amounted to a few hundred more.

Socialism isn't cheap. The left has to pay for it somehow.

52 posted on 12/08/2012 6:39:16 AM PST by South40 ("Islam has a proud tradition of tolerance." - Barack Hussein Obama - Cairo, Egypt, June 4, 2009.)
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To: Excellence

Why all the complaints? The fact that you 0own a car is better than some. It is for the Collective good that you pay that tax. Maybe if you picked up poor people alongside the road and gave them free rides??? That would be more “fair”.


53 posted on 12/08/2012 6:40:52 AM PST by hal ogen (First Amendment or Reeducation Camp?)
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To: Boxsford

PA has in-transit tags, good for 30 or 60 days. Take the signed notarized title to the new state and register it. No sales tax until you get to the new state.

If PA says it is worth more, argue with them on the condition and they will usually give in unless you are ridiculous in understating the value.


54 posted on 12/08/2012 7:06:58 AM PST by tired&retired
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To: LiveFreeOrDie2001

Nice goat! That’s the same color jelly bean I want. What year? Right now I’d even settle for an early LS1 version with an auto. I’m even looking at F-body camaros/firebirds but it’s hard to find one without some winter molestation in MN.


55 posted on 12/08/2012 7:14:56 AM PST by miliantnutcase
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To: LiveFreeOrDie2001

Simple solution...immediately move from Minnesota’s tax hell to neighboring South Dakota. The tax on vehicles purchases is only 3% and a license plate will cost you about $60. South Dakota also has no state income tax. Minnesota long the land of 10,000 taxes is poised to become even worse with a solid Democrat majority in both houses of the Legislature and moonbat liberal Mark Dayton as governor.


56 posted on 12/08/2012 7:23:54 AM PST by The Great RJ
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To: miliantnutcase

2006 GTO
6-speed
500rwhp/tq.

Looking at the pcture..... Am I Guilty...??


57 posted on 12/08/2012 7:26:23 AM PST by LiveFreeOrDie2001
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To: LiveFreeOrDie2001

You should be able to claim the Ca. sales tax on your tax returns and get it back. Home state law and local taxes apply based on where the car will reside. Here in Wisconsin it keeps people from bouncing county-to-county or over the state line to save a few bucks.

You’re problem is frustrating but from the sounds of it, you’re still thousands ahead. Pay the tax and move on with life - you’re not going to beat the system.


58 posted on 12/08/2012 7:38:58 AM PST by sbMKE
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To: LiveFreeOrDie2001

Who told you that?

I have bought several out of state cars, trucks and trailers. You do not register them (and pay the tax) in a state you don’t live in. This is from a guy that has worked in 19 states; I travel a lot. I currently have two vehicles I bought out of state. Neither were registered in the states purchased. I transferred both out of state titles in Texas where I live.

Louisiana tried something that required out of state residents to buy license plates and driver’s licensees while working in their state. Texas, Oklahoma, Arkansas and Mississippi won the case in federal court. Requiring you to register out of state (and pay the highway tax) is against federal interstate trade law.


59 posted on 12/08/2012 7:52:30 AM PST by El Laton Caliente (NRA Life Member & www.Gunsnet.net Moderator)
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To: WorksinKOP

A simple bill of sale does that, you can down load a binding bill of sale blank from several web sites.


60 posted on 12/08/2012 7:56:56 AM PST by El Laton Caliente (NRA Life Member & www.Gunsnet.net Moderator)
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