Taxachusetts Fictitious Valuation

Can't believe the State (Ma.) Sales Tax Law here in regards to Old Cars. Seems no matter what you paid, This State Uses NADA valuation for Sales Tax on cars. I had to pay 6.5% sales tax on $37,000 for my $10,000 basket case Nomad. I had photos and do***entation to support my $10,000 purchase price.
Needless to say, I had to pay some $2,600 and change which also included a Penalty for not paying the Overinflated Tax right away. Filed abatement to No Avail.
Any Suggestions on Getting Around This for Next Time besides moving to another State?

 

M*** taxes is the biggest reason that southern New Hampshire is so overpopulated.
Don't you have a friend or a hunting camp in New Hampshire?

 

Same thing here. My 64 Galaxie that I paid 4k for was low valued at 6k. When he told me that I blurted out "Are you F*CKING KIDDING ME?!?!?!''. Didn't even bother with the confusing abatement papers.

 

Next time buy a Rambler?

Good luck with trying to get the system changed...

 

Make sure that they are using the right book.
There are two, Avg. trade in values and avg. retail valvue.

Taken from the Ma,. Reg. site;

"A 6.25% sales tax will be collected at this time based on the purchase price of the dealer sale. If the dealer is not registered with the Department of Revenue or the vehicle was purchased through a private sale, the sales tax will be calculated at 6.25% of the purchase price or the National Automotive Dealer ***ociation (NADA) clean trade-in value, whichever is higher. If no clean trade-in value is available a default value agreed upon by both the Registry of Motor Vehicles and the Department of Revenue will be used."

 

You should tell them that you consider their valuation as an offer to buy the vehicle at that price.

don't expect it to work, though

 

do what i did, say to hell with MA and move to AZ its much better out here.

 

It's not going to get any better AND it's likely going to spread like a wildfire to every other financially strapped state (read that: ALL states). Hate to sound like the prophet of doom, it's just a sad statement on the times we live in.

 

Our idiot governor has decimated the dmv, flushed whatever customer service they had down the toilet & raised the rates for everything! That being said, have you seen the gas prices in CT. They have the dubious distinction of being the most-taxed state in the country. We're only fourth.

 

I went through the same thing when i reged mine sickening the states and goverment are killing us its time to start doing something about it

 

I left M*** a long time ago....way too many people who like to take and spend other people's money....no accountability......too many political crooks and freeloaders.....

 

Have the car appraised by a licensed appraiser. Then take that and pics to the state. it would be even better if the appraiser took the pics and could validate that he or she took the pics.

You may end up before a judge before all is said and done. If you car is not running or drivable they cannot legally set an NADA value on it, NADA does not list s**** or salvage prices or values.

It may cost you some bucks to get around the tax but it will set a precedent and that will be the beginning of a good thing for everyone that comes behind you.

 

I moved out of M*** in 1968 for the same reasons. Unfortunately your only choices are to pay or move.

 

Interesting legal advice coming from a Missouri resident..
M***. WILL use NADA value per their laws.
And your application for abatement WILL be ignored, you will not hear back from the state...

Best advice:
register it in NH
Move to NH
Buy it as a list of parts.

 

Same thing happened to me,...I had a '57 two door sedan that was listed as a hardtop on the ***le when it was a sedan,...well there is a big difference in NADA values for a sedan and hardtop,...I brought pictures to even show them,...nope,..if it goes their way for more money, regardless if their right or wrong....I have always hated living here....

 

You did notice that I mentioned appearing before a judge. You can take my advice as one from a man who has spent his life bucking the system. I think that if you look into it you will find that it is not law at all it is policy. If you go before a judge who is not bound by state taxation policy you will find that he/ she can make a judgment based on cons***utionality of the policy or procedure.

BTW I have lived in M*** as well as many of the states in our union. Maybe not a life long resident but long enough to deal make enough money to leave. It was suggested that because I was working and drawing a paycheck that I was required to register my mod of transportation in M***. I went before a judge and it was determined that I was not required to do so.

 

CT beat that system by using the bill of sale for the most part and you can take the state to court and tell the judge that the NADA is in it's own words -
"A guide for automotive prices and does not reflect actual values in different regions of the country".


A guy a friend knows used that exact line to get a refund on the cost to register a car when he took CT DMV to court for over charging him. He got his money 3 years later.


CT struck back by another means and from what I hear, the bill was brought up to change the "antique plate" law from 20 years old or older to 30 years old or older and to add in raising taxes on the value of anitque registered autos.
It got defeated --- BUT---
I hear or dip**** in the governer mansion approved the tax issue being an addition to another EPA law that did p***.


This means that if a town needs funding for whatever reason, they may at thier will, raise the tax rate on your antique to match the current "mil rate" values in order to raise revenue funds, without notice by using the value in which you have your car insured for and not NADA or KBB because you "stated the value" of the vehicle in case of loss.


There would be no arguement because as the insurance policy is listed on the registration, you bring your current policy and registration to the tax office and they charge taxes on what you have it valued for at its "actual stated value" on the policy in effect at that time.

No insurance = no registration,
No taxes paid = no registration,
No registration = no driving,
No driving = junkyard or "haxardous waste" permit or "non-exempt" inop fee or old cars go to junkyard therefore the tax person and the EPA wins everytime = you lose.

Can't wait to get the hell out of Connecticut, the ******* state !

 

NC has had those magic value numbers for private sales for a number of years. You can take the car to any licensed dealer though and he can put a value on it that they will accept. Otherwise, the values the state ***igns here will generally be way too high unless the car is restored or in like new condition.

 

Cool at least Cali isn't in the forefront of this rip off.

 

theres no way to show a depreciating value. for instance a 2005 nissan altima is not worth 24K in 2012 for instance.. they use nada for that situation also dont they?

 

This is copied from the N.A.D.A. website:



"Low Retail Value
This vehicle would be in mechanically functional condition, needing only minor reconditioning. The exterior paint, trim, and interior would show normal wear, needing only minor reconditioning. May also be a deteriorated restoration or a very poor amateur restoration. Most usable "as-is".

Some of the vehicles in this publication could be considered "Daily Drivers" and are not valued as a cl***ic vehicle. When determining a value for a daily driver, it is recommended that the subscriber use the low retail value.

Note: This value does not represent a "parts car"."


My 29 Model A Roadster is taxed at the low retail price of $20,895

There is currently a 28 roadster rusty project car on ebay with a buy it now price of $5,000 that is about the same shape mine was in when I got it.

No way is the one on ebay worth $20,895, but Taxachusetts lawmakers decided it is and collect the sales tax for that amount.

I'm going to print the page from N.A.D.A and send it to the MA Registrar in Boston along with pics of my car when i pushed it out of the barn it was in and highlight this last sentence:

Note: This value does not represent a "parts car"."

 

In Pennsylvania, they use NADA as a guideline, but you can get them to accept a lower value if you report (on their form) that the car has issues with the condition that lead to a lower value. I've done this twice with no problem.

I can't imagine that M***. (or any other state) could get away with using NADA as evidence without any question or loophole available.

 

NADA includes depreciation. That's what NADA books are all about.

 

That reminds me... there is a fourth way to get the correct value on your heap..

"buy it" from your friendly car dealer who is registered with the state.
M***. will accept THAT value.

 

Love living in New Hampshire! No sales or income tax!

 

In Kentucky when you apply for antique plates all old cars are valued at the same amount-$100. It doesn't make any difference if it's a 4 door Edsel that's been sitting in a field for 40 years or a '59 Cadillac convertible in #1 condition....

 

Florida tried that system some years ago but I think they got sued and quit doing it. I bought my then wife a Lincoln Town Car that had a blown motor for $ 700 and I rebuilt the motor. Went down and registered it, paid the taxes on $ 700 and then a while later got a letter saying to the effect " Your year Lincoln Town Car has a value of ********X, and you underpaid the tax owed on that amount. Please remit the difference of ******. "

I sent them a letter stating not all Lincoln Town Cars of that year are worth the same amount, some are mint and some are junkers. I sent a copy of my bill of sale showing I actually paid $700 for it and never heard back. Later on I heard they had been forced to abandon that BS due to a cl*** action suit.

States are all money grubbing theives and the people we vote in suddenly start coming up with ways to increase the money the State takes from us. I think a bunch of you in M*** should fight this law.

Don

 

Ok, before I jump into the hellfire with guns blazing, let me say this...

The states' view on old cars is now "Potential Restored Value" thats THEIR law and interpretation, they use NADA and other sources as a guideline.
The abatement process is a joke because you have to pay it first anyway, then file the abatement!
Also alot of tellers are new to this and it seems from personal experience and other stories, that if you approach it on a slow day and get a few tellers involved you may prevail...but sorry to say the days of buying a heap for $500 and paying $25-30 bucks are gone...

My story:
got my AV8 roadster ready to go, my insurance co wouldnt write a policy on it because it was "incomplete and missing parts" (hood, fenders...you know a hot rod) went to grundy(prob solved)...BUT went to registry, they whacked me for sales tax on $28,500(!!) + ***le + late fee + plates!!!

Oh well...

 

And now you know why (everyone) cheats on taxes in some way or another, and have you ever told the DMV a lie on how much you paid ? LOL. Lets see how this statement gets some responses.

 

Thank God I live in Oregon(rains a lot) but no sales tax or tax on vehicles. We have a flat fee of $80.00 every 2 years. Also if the car is over 25 years old and only used for show, rod runs, and special occasions, etc etc and not driven daily and you have orginal plate that match the year you can register for one time fee of $80.00 and never have to pay again. Also expemts from DEQ inspection. The plate does not have to be the one that was on the vehicle orginally just match what was issued the year the car was new. Nedless to say all of mine 2 57 Fords, a 62 Pontiac,and 61 Pontiac are only driven on special occasions.
I can live with rain.