Sales Tax Laws on Classics

[cwestra]

I have been trying to locate information on line about any possible "loop holes" or special tax rules that exist regarding reduced sales tax rates when buying older classic cars.  With the values of some of these cars, the normal sales tax can add up to be a good chunk of cash.  I thought I read somewhere that there were special rules that apply to classics, but haven't found much on line regarding this.

Aside from trades, what experiences do others here have regarding this issue?

[HP2]

None that I've ever found. As vehicles,  they don't qualify for historical preservation credits like real estate may.

[AARTA340]

In Nevada there is no sales tax on private sales of vehicles. Not sure about other states/areas.

[OUTLAW]

my solution to the tax on used car sales is.......I lie and tell them it just an old parts car not worth more than a couple hundred bucks ....LOL

[AARTA340]

Washington State will pull out a NADA book and attempt to charge you the sales tax of a good#2 driver. I found this out in the 1990's when I found a deal on a 71 barracuda (this thing was completely stripped and parts were in boxes) and when I went to transfer it to my name, they said they were going to charge me sales tax on their book value of $11k.


 Told them I would sell it to them and for half that, then they just got snotty. I then went to another licensing place and tried again, this time brought pictures of the car. They told me they could not do the transfer at what I paid but would do it for a little more, so as not to have a problem with the State later.

Then the State wondered why the voters implemented $30 license fees for vehicles.


 

my solution to the tax on used car sales is.......I lie and tell them it just an old parts car not worth more than a couple hundred bucks ....LOL

[brads70]

Pretty sad that governments make more profit than the one who manufactured them in the first place. 

[JH27N0B]

As if there aren't enough reasons to not live in Illinois....
We get nicked $1400 on any used car "classic" or not if it's over 7 years old and sold for over $14,000. And in recent years the secretary of state has gotten real hard nosed about older car sales. So you buy a tired '68 AMC ambassador for $3500, and then pay a modest title fee and license it.  A few months later you get a letter from the state basically accusing you of being a crook because you paid over $14,000 for a car and lied about what you paid, and therefore owe the difference, plus a penalty of course.  You really have to document to the hilt what you paid for a car to prevail.  And they even contact the seller to verify what you paid.
It gets worse, as I found out the hard way in 2010 when I bought my 71 V code Challenger at a Mecum auction.  On dealer sales, new or used car, you pay a straight % sales tax.  A few weeks after buying my car, I received the title in the mail.  I grabbed my checkbook and headed to the secretary of states office not happy about the prospect of having to cough up another $1400 to complete the purchase of the second biggest value purchase, after my house, in my life.  I get there and go to a table with forms to fill out and see 2 for used cars.  One for purchases from private owners, and one for purchases from dealers.  My title was assigned, so I had to use the purchase from dealer form.  I fill it out and calculate the tax from the charts, and find I owe over $4000! So I end up paying sales tax on this car almost identical to what it sold for new 40 years earlier!  You can't make this stuff up.
Imagine buying a hemi cuda convertible if you lived in IL.  The difference in tax between a dealer sale and a private owner would be 6 figures vs $1400!
I can't wait to move from this crooked state, when I cross the Illinois border I'll never look back.

[BIGSHCLUNK]

Brad , I can relate. They want every dime they can get here and they will contact the former owner to see if what you said you paid is what you paid. Now there have been a few here and there that would "help" a brother out but....     

[brads70]

Brad , I can relate. They want every dime they can get here and they will contact the former owner to see if what you said you paid is what you paid. Now there have been a few here and there that would "help" a brother out but....   

No different here, They think everyone is name Ben Dover and have calluses on our ankles.   
We have to get the car appraised and pay 13% of that. Now it helps if you know someone in the appraisal business but your still going to pay.... .

[OUTLAW]

I thought Iowa Sucked until hearing what these other states do. I have never been questioned over the price I claim  except if I claimed it was a gift. If you buy a car or bike with no title you can get a bonded title for $25.
Iowa just got a little better   

[Gumby]

Nebraska the same, almost as Iowa. To get the title changed to my name was $10. If you win a car in a lottery, it is considered a gift. Gift's are $10.00 for title.
I was stunned. Was expecting to pay a lot more.

[onebadfish]

13% in Ontario? I thought Ontario only paid the PST not the GST on used car sales? I have bought and sold lots of used cars here in Alberta - no tax whatsoever. I bought my cuda in Ontario in 2010 and the guy wanted to mark down the bill of sale 20 grand so I didn't have to pay as much tax - no worries I said - we don't pay tax in Alberta on used cars. Onterrible sucks. 

[burdar]

I thought Iowa Sucked until hearing what these other states do. I have never been questioned over the price I claim  except if I claimed it was a gift. If you buy a car or bike with no title you can get a bonded title for $25.
Iowa just got a little better   

When my dad transferred ownership of the Challenger to me it couldn't have been easier.  We "lost" the original title because they were going to take it and not give it back.  It was like $35 for a new title and then standard license fees.  No tax or anything.  We even forgot to put it in storage(kept it licensed without renewing) for over ten years.  The gal said "No problem".  We just had to fill out a form that said the car had been off the road for the entire time and we didn't have to pay any penalty. I've never had a problem with the DMV in Iowa.

[OUTLAW]

[size=0px]We just had to fill out a form that said the car had been off the road for the entire time[/size]

Ya I used to do that too. The way it worked for me was the car had to be off road for 3 years or more, you filled out an affidavit saying so, and they wouldn't charge you for those years fee or penalty and just pay the current years road tax and $10 for a new set of plates, no questions asked.  

[roadman5312]

In Florida it's 6% sales tax on all cars regardless of age. They take your word for the selling on private party sales. I have heard of some people lying about it.