Hey All - I'm in the process of trading an untitled '32 Ford project car for a finished and****led '32 from another state. I'd like to know how others have handled similar trades with regards to their state DMV and taxes. I live in Florida and the DMV site is pretty unclear as to how they would handle valuation and ultimately taxation (like every other state, I'm sure they'll have their hand outlooking to get paid). Much thanks to anybody for advice.
State DMV's are getting smarter. Get a Bill of Sale showing a reasonable price and the signed over****le and register your new 32 at the FL DMV. Sometimes your better off just paying the piper.
Every State I know requires you to pay Sales Tax on the Book Value. It doesn't matter what you paid or traded. In most States you are also required to pay the Sales Tax and****le the vehicle within a short period of time. Not****ling a vehicle incurs penalties. A formula that rarely is as clear as it should be. (I've stepped out of line at the DMV, gone into another line, and had a completely different fine structure told to me!). Keep in mind****ling a vehicle does not mean Registering the vehicle.****ling just ensures the State gets the tax money, and you get a legal document enabling you to sell the vehicle. I would talk to a Dealer friend and see how to proceed in your State. In Massachusetts there is a very convoluted way of side-stepping the fine. We just paid a Dealer Runner $50 to get all the necessary forms, and process it for us, paying no fine on a 5-year old build we never****led.
When I have traded something in Fl (where I live) there is a spot on the****le for the price given for the car,boat, etc. I was told to put even trade in that space the times I have traded for something and there was no tax, just transfer & license fees. I would suggest going down to the DMV and talk to a supervisor about this esp being it's coming from out of state as there will be some sort of fee for adding another car to your stable. They may require a special bill of sale that states the even trade, or the balance of value since yours is not****led and the one you are getting may not have the value line like Fla does. Good luck
As far as valuation for taxes , I use what I paid / what it's worth. It's not worth the jail time for the small difference in savings to fudge it!!! (I've softened or maybe wizened in my old age)
Just remember, the government agencies are not there to give you a break, they are there to collect money. So if there is any way to make you pay, they are going to use it.
Many many conversations here about values and****ling etc. Every state is different and you may find differences in DMV offices in the same county. On thing that may help . Get a current copy of "Old Cars Report Price Guide" ( oldcarsreport.com) and take it with you. Also take as much documentation as possible, pictures to show the condition of the project. At least here in WA, they accept the printed values.
I have to go along with Upspirate and the others that say you need a clear set of bills of sale both ways saying exactly what the trade was and that it was a trade/barter. I'd also go along with going to the DMV and as high an official as I could talk to or the most knowledgeable one and get the straight scoop on what actually need as far as paper work along with the****le of the car you are trading for. A copy of the add the other guy had for the car you are trading for places a value on it or likewise a copy of the add you had on your project car that you traded sets a value. It's a lot more believable to show your add for what you traded off as the value of what you traded for than just a pie in the sky value.
upspirate, Mr48chev, Hotrodmyk and all - thanks for the advice. A few details - the owner of the other vehicle did not have his listed for sale so we don't have that info but we should be able to document everything else. I'm going to make a trip to the DMV Tuesday and see if I can get info from the horse's mouth. Will report here for FYI purposes.
Here in Nebraska if you can document a straight across trade, no sales tax is due. The county treasurer may look at you cross eyed and need absolute proof but it's worked for me before. Also here we can use year of manufacture plates and they are a one time fee of 80.00 and last as long as you own the car with no further taxes.
Talk to hot rod guys in your area -it's probably not the first time this has come up. Posting here will get you a wealth of well intended info from around the world that has nothing to do with Florida DMV laws. Whatever you do, DON'T GO TO THE DMV!! By the time they're done with you, you'll be ready for the funny farm.
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