Lie to the dmv about purchase price?

[KeithP]

Are you in Texas…

Texans who buy a used vehicle from anyone other than a licensed vehicle dealer are required to pay motor vehicle sales tax of 6.25 percent on the purchase price or standard presumptive value (SPV), whichever is the highest value.

-KeithP

 

[snoopy7548]

I keep my title in my wallet, along with my SSN card and passport.

 

[gill77]

Are you in Texas…
-KeithP

The world is going insane. I bought a Kawasaki Ninja 650 from a buddy for a song. Not running, a real fixer upper to say the least.

That is when I discovered standard presumptive value

 

[Hail The Brain Slug]

I'm glad herethere is no taxing of vehicles

 

[Scarpozzi]

States that I've seen base the tax on the average value, not on the value you paid. This avoids the common situation of lying about value. They've heard the "my friend gave me a great deal" line way too many times. Of course, it will vary from location to location.

I have seen that some states let you provide an appraisal that shows your car is worth less than the average. But, that probably won't gain you more than the cost of the appraisal.

I've not done many transfers like this, but isn't there also the issue of parents gifting a car in the family, but "selling" it for $1? I'm sure those situations are what that law may be there for....so all of the states can get tax money for every parent that gifts a car to their kid. States that don't do that simply won't have enough money to pay for their police officers.

 

[dullard]

I've not done many transfers like this, but isn't there also the issue of parents gifting a car in the family, but "selling" it for $1? I'm sure those situations are what that law may be there for....so all of the states can get tax money for every parent that gifts a car to their kid. States that don't do that simply won't have enough money to pay for their police officers.

At least in my home state (Nebraska) there is a separate form for gifts to fill out. I did that when I was a teenager. My parents "gifted" a used 17-year old car to me. Then later on I "gifted" it back to them. I never paid a penny in sales tax on either transaction. But, that was a separate form that I assume they verify by things such as similar last name, similar address, etc.