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Discussion Starter · #1 ·
Where I live (now), you have to bring in a Bill Of Sale to register your bike. The point behind it is to collect 4% sales tax based on the sale. Personally, I think that's crap for private party sales. A car or bike could change hands 10 times and the state gets sales tax ten times on the same vehicle? :whistle:

I've bought and sold cars/bikes in three different states and this is the first time I've ever heard of this.

What's it like in your neck of the woods?
 

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well here in taxachusettes its a 5% sales tax when you buy a bike and register it...and yes, if the bike is bought and sold 5 times they will continue to charge the 5% sales tax on every sale/registration.....same thing with a car also
 

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When I lived in Washington State, they charged a tax on private sales, and if you didn't sell it for what they thought it was worth, you had to file an affidavit explaining the selling price. So If you wanted to sell your bike to your uncle for 1000 less than the dealer, You had to explain the damage, etc to the state or they would tax you for the full amount, regardless of your selling price. I think that's another reason I don't live there no more...
 

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There is always the "It was a gift" statement that you can use... or the good for services...Like if you did some work for the people and they paid you with the Car/bike... there are lil' things you can do to try and get around that.... but you guys knew that.... :leaving:
 

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Low said:
There is always the "It was a gift" statement that you can use... or the good for services...Like if you did some work for the people and they paid you with the Car/bike... there are lil' things you can do to try and get around that.... but you guys knew that.... :leaving:
Then they charge you tax on the blue-book value instead of an actual sale amount :) (At least in VA and DE ... going to be the same in most other states as well I would think).

Almost all states have some sort of sales or "transfer" tax on vehicles. Here in DE it's 2.7%.

- Roach
 

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In Ontario they charge pst (provincial sales tax) 7 or 8% on the transfer of all vehicles. Unless it's transfered between familly members. They charge is based on the price stated on the bill of sale or the blue book value. What ever is the higher price.

Personally i think it's a f-in joke. If i buy a chocolate bar and decide i don't want it anymore and decide to sell it to a friend i don't charge sales tax. Same thing, only on a larger scale (much larger scale)
 

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DAN DUBEAU said:
Personally i think it's a f-in joke. If i buy a chocolate bar and decide i don't want it anymore and decide to sell it to a friend i don't charge sales tax. Same thing, only on a larger scale (much larger scale)
Actually (At least as far as US state laws go), you're supposed to - or they're supposed to report it and pay it.

Yes, it's silly, but technically you're supposed to pay sales tax on any sale, even a private one (I'm not condoning it or saying it's right - this is just how the tax laws are written). With vehicles, you can't get around it because the state collects it when you transfer the title.

- Roach
 

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Pretty much the same here. Need to show something so they know how much to charge for taxes. Damn taxes.
 

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Here in Michigan there is spot on the transfer area on the back of the car/bike title to put in the amount. I always offer to put down less so they don't have to pay as much taxes...cause like you say... they get taxes on that vechicle over and over and over... damn big brother!! and it's at 6% :bash:
 

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bumblebee said:
When I lived in Washington State, they charged a tax on private sales, and if you didn't sell it for what they thought it was worth, you had to file an affidavit explaining the selling price. So If you wanted to sell your bike to your uncle for 1000 less than the dealer, You had to explain the damage, etc to the state or they would tax you for the full amount, regardless of your selling price. I think that's another reason I don't live there no more...
yep, they still do that here. when i bought my 89 Honda Prelude, i paid $1300 but the seller wrote down $1000 for us to lower the amount of taxes we'd have to pay. the stupid DOL tried to charge me taxes for $3000! i had to actually make the person go out side and look at the crushed door and rear quarter panel so they'd understand why i got it so cheap. even then, they still tried to charge me taxes for $2000. it took forever to get them to only charge me taxes on $1000.

Late

Darksyde
 

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Discussion Starter · #11 ·
Well, I just registered the new Avalanche. They based the sales tax on the sale value, didn't look anything up, unless they did so on their antiquated IBM (circa 1990) computer system, which I doubt.

Still at 4% it's a hit no matter what you're buying.
 

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In Michigan, they make you pay 6% sales tax and the tags are based on the original sticker price...aka MSRP...even if it's 10 years old and only worth $500.
 

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Everything I have sold used I have sold to friends... SO no matter the price they paid me, I always put down like $1 or something on the bill of sale. Screw the sec of state, she can't have anymore of my or my friends money, that dirty money grubbin hooker! :lol:
 

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Yeah POD let's get that bietcha!
 

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Well in KY you can type up the bill of sale what ever you want, as long as the the person you are buying or selling to agrees. When I bought the SV we just typed up the bill of sale at $500.00. When I sold my car I just typed up the bill of sale of something stupid like $1000.00 Its 6% in KY, the county clerk doesn't have to know everything! They get enough money as it is.
 

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In N.C.
They use to use bill of sale.
To many people where making false papers with a lesser amount.
Now the go by Blue Book. :cursin:
 

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I'm sure all states will go to that soon. But as long as I can get away with it, I'll keep doing it.
 

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Here in Indiana, they base it on bill of sale or price listed on back of title. When I bought my car from my parents, they put $200 on the title and the woman at the DMV looked at me and asked how I got a car that cheap. I told her it was wrecked and I was going to fix it. She said okay.

When I sold my Katana to a guy in N.C., I offered to put a lower amount on the title and he said that it doesn't matter because they go by bluebook value. What a crock!

Want to hear something else screwed up? When you file your state taxes in Indiana, you have to pay a "usage tax" on anything that you purchased from out of state. So, if you buy parts for your bike off eBay (or from Speedwerks), you're supposed to list the total amount that you paid for out-of-state items throughout the year and then pay taxes on that amount.
 
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