Department of Licensing scam

[T.Low]

I finally get the title sent to me from the gal I bought the van from and take it down to the licensing department today. The seller filled in the proper price of $9000. The gal behind the counter informs me that the fair market value of my '03 Astro is $11500. The DOL figures there to be a grace area of $2000. So she marks my purchase price up to $9500 to meet the bottom of their predetermined fair market value of the van, and thats what I have to pay sales tax on. #-o

I commented that the fair socialist market value may be $11500, but obviously the fair free market value of that van was $9000. (I saw the van on Craigslist at $11500, and didn't bother to pick up the phone. Nor did anyone else. ) She held her pleasant smile as the comment sailed harmlessly over her head.

She says something about them getting ripped off by people if they don't set these values. I smiled and said something about me getting ripped off by the DOL instead as I wrote the $857.00 check to license the same van that I've already been driving around town for two months. ](*,)

Its just the principle of the thing.

[dunedog]

Does Wash. State have a yearly excise tax too?

[potskie]

That's some serious nickel and dimeing dude.

What is an excise tax? Like you have to pay taxes on the vehicle yearly???

[astrozam]

The mere fact that ANY product is taxed a second time is a complete scam,we have the same ripp-off up here in Ontario.

[potskie]

The mere fact that ANY product is taxed a second time is a complete scam,we have the same ripp-off up here in Ontario.

We do???

I only paid tax on my van once.

Altho the OO probably paid tax when they got it too.

But if people are paying tax on it yearly then that is some weird crapola

[astrozam]

The mere fact that ANY product is taxed a second time is a complete scam,we have the same ripp-off up here in Ontario.

We do???

I only paid tax on my van once.

Altho the OO probably paid tax when they got it too.

But if people are paying tax on it yearly then that is some weird crapola

Your BAKED! lol

Not yearly,TLow is talking when he purchased the van,Dunedogs talking about something totally different.
I'm saying that once tax's have been originally paid on an object,then they should NEVER have to be paid on that same object again.

[potskie]

The mere fact that ANY product is taxed a second time is a complete scam,we have the same ripp-off up here in Ontario.

We do???

I only paid tax on my van once.

Altho the OO probably paid tax when they got it too.

But if people are paying tax on it yearly then that is some weird crapola

Your BAKED! lol

Not yearly,TLow is talking when he purchased the van,Dunedogs talking about something totally different.
I'm saying that once tax's have been originally paid on an object,then they should NEVER have to be paid on that same object again.

Roger Roger.... But it's a "transfer / sales " tax the second time around because we "purchased" the vehicle.

Oh well that falls into the same category as the new no smoking in a vehicle with children law.

[astrozam]

A tax is a tax is a tax, no matter how the Gov't wants to try to disquise it.

[phr1$k37]

Ah TLow sorry to hear about that and you are a nice guy as well. Nice guys luck out some times. BTW was it possible to go to another place to do the paper work?

Pots - yes it can happen but here is how (at least in my experience) ... oh I go one broker to all the work because I have gone there many times with several vehicles and have referred a few people there so they remember me and dont BS.

When you the vehicle there is a market value but if you happen so to get below the market value you need to state why. It is up to the broker to believe you or not but really it is on your head. Sure they make a little bit off your transaction but in T.Low's case that was little of a difference that I feel like slamming that clerk for him! IF you low-ball to avoid high tax it is possible you will receive a kind letter in the mail with the tax to market value oh with interest to pay up.

I got the letter for the Eagle Talon we had for a while - I bought a 1996 in 1998-99 for $3K (TSi AWD) but it was totaled and rolled twice (not including the times we rolled it ...>.< lol ) and so I stated that in the owners paper when doing the owners' transfer paper. I did receive a letter with interest but I called the number to explain and told the lady (blah) I have all the papers to prove I really paid only $3K (no under the table cash) and why. They dismissed it.

[Jersey John]

Didn't you have a bill of sale or reciept from the seller that showed what you paid? In pa the tax what the sale price is,I have never paid more than $500 for a car according to the state (hehehe). My Safari was considered a gift from my inlaws (no tax).

[dunedog]

This is what the state of Massachusetts has:

Under MGL Chapter 60A, all Massachusetts residents who own and register a motor vehicle must annually pay a motor vehicle excise. Also, under MGL Chapter 59, Section 2, it is important to note that every motor vehicle, whether registered or not, is subject to taxation, either as excise or personal property, for the privilege of road use, whether actual or future. The excise is levied by the city or town where the vehicle is principally garaged and the revenues become part of the local community treasury.


Billing
Excise bills are prepared by the Registry of Motor Vehicles according to the information on the motor vehicle registration. They are sent to city or town assessors who commit them to the local tax collectors for distribution and collection of payment. Cities and towns may also prepare their own bills based on excise data sent by the Registry in conformity with Registry requirements.





Bill Computation

An excise at the rate of $25 per one thousand dollars of valuation (effective 1/1/81) is levied on each motor vehicle. Information on the value of a motor vehicle is accessed electronically through a data bank complete with valuation figures. Different sources provide the valuation figures depending upon whether the motor vehicle is an automobile, a truck, a motorcycle, or a trailer. For example, automobile valuations are derived from figures published in the National Automobile Dealers Association Official Used Car Guide (NADA), to which the Registry has electronic access. Most public libraries have copies of NADA and other motor vehicle official guides.

Figures are the manufacturers’ list prices for vehicles in their year of manufacture. Present market value, price paid, or condition are not considered for excise tax purposes. The excise tax law (M.G.L. c.60A, s.1) establishes its own formula for valuation for state tax purposes whereby only the manufacturer’s list price and the age of the motor vehicle are considered. The formula is as follows:

In the year preceding the model year
(brand new car released before model year)
50%

In the model year
90%

In the second year
60%

In the third year
40%

In the fourth year
25%

In the fifth and succeeding years
10%


Every motor vehicle owner must pay an excise tax based on valuation of at least ten percent of the manufacturer’s list price; thus, owners of vehicles older than five years should have a fixed excise tax bill for succeeding years of ownership. Even though an owner may have applied for an abatement that may reduce an excise tax bill, no excise shall be less than $5.

[Someone]

damn... talk about land of the free

[potskie]

Man and people whine about the taxes in Canada.


Well do you have to get a new sticker every year like we do tho??

Like every year we have to renew our license plates. I got a 2 year last and it was 149 for 2 years.

[phr1$k37]

damn... talk about land of the free

Was that suppose to read "... talk about land of fee ..." ???

[Someone]

damn... talk about land of the free

Was that suppose to read "... talk about land of fee ..." ???

LOL it was actually ment as sarcasism... but I like your way better