I have seen variations of the situations reported here a**** some of my friends who are building rods. I recently bought a 1940 Buick from Wisconsin, ***led and registered it in Illinois and have had no h***le. I own several older vehicles, ranging from '37 to '63, and have yet to experience the problems noted. However, that said, I have also written a few appraisals for people in my community in order to help resolve these issues with the State. The problem is at least two fold. On the one hand there is the Department of Revenue and the tax they wish to collect. On the other hand is the Secretary of State's office and their concerns about valid ***les. First the tax issue. In Ilinois if your buy from a private party, and if you paid less than $15,000 (14,999 or less), you pay a flat rate "Use Tax" of $25.00, plus ***le fee (current $65 rising to $95 Jan 1, 2010), plus either registration (plates) or transfer fee if you already have plates. At $15,000 or above the "Use Tax" is, I believe, $750. You can immediately see the incentive for a purchaser to 'fudge' the purchase price, given the difference in use tax for a few dollars difference in actual price paid. All of this applies to existing, ***led vehicles. The situation changes quite a bit for "specially constructed vehicles"......i.e, kit cars and hot rods. These vehicles have not ***les, may have a "Certificate of Origin" for a genuine kit car, Factory Five Cobra" for example, which gets one off to a better start than just a pile of random parts to be ***embled. The State worked with NSRA (National Street Rod ***ociation) to develop an inspection program (based on the NSRA Safety 23 Insp) to facilitate getting an ***embled car ***led. That program proved to be extremely ***bersome to actually implement with all volunteer NSRA district officials, who usually have regular jobs and families etc., and is being replaced with a program administered by the State Police. Not sure it's the Highway State Police, but maybe the Secretary of State Police, which is a different en***y and who administer the rebuilt vehicle certification program and enforce State Laws governing auto dealers. It is the specially constructed vehicle that raises some tax issues as well. All the parts used in the vehicle are presumed to be taxable.......and possibly labor, although labor has not been taxable in general......confusion reigns.... As to the State questioning ***le for vehicles of a certain age, I have heard on good authority that some ***** builder in southern Illinois sent in a handful or two of old ***les, all at the same time, obtained from who knows where, and attempted to get new ***les in his name. That set off alarms in the Secretary of State's offices and this guy was visited by the SoS fuzz. And the rest of us, our hot rod lives just got more complicated. Bottom line, if you have a legitimate ***le for a real vehicle that you have purchased and can substantiate what you actually paid for it, you should have no problem, or no insurmountable problem. On the other hand, if you have a ***le for a 'phantom' vehicle, don't have a realistic price you claimed to pay, and aren't buying plates for it...........prepare for some correspondence at the very least, and a visit from the State Police at the worst. There are procedures, either currently in place, or being drafted, to address these situations that will produce a legal ***le for your vehicle. You should be prepared to approach this with patience, a diplomatic at***ude and bills of sale for major (or all) components. I am not defending the situation.............I don't like it either, but things could be a lot worse....A LOT WORSE.........we could be prohibited by statute from making modifications to our cars, regardless of age, and if permitted, only with onerous standards and inspections etc. p.s. the one thing that continues to amaze me, regarding the tax situation, is that private sales are not being taxed the same as dealer transactions. The number of private sales that only produce $25 use tax, vs the amount they would produce at the 6.25% State rate (plus some municipalities add-on) would generate a bunch more revenue. I am ahppy that remains the case, but expect at some point that will change.
That's commonly stated, but incorrect. Ford produced approximately 4,300,000 Model A's from '27-'31, and approximately 275,000 '32s. There will be nowhere near that many of either currently registered. Now, there may be more than 13,000 real and fake '32 roadsters (the original production number) out there right now, although I'd be a bit skeptical about that, too. Now back to your regularly schedule Illinois registration discussion...
I bought my '41 Pontiac in 2000, in Iowa. I transferred the ***le to my name then, and licensed it as an antique ($25 for five years, since gone up to $30 for five years). The car is nowhere near done, but I will continue to pay the $30 fee every five years. If, after the car is done, and I want to use it as a daily driver, I'll just go to the SOS office and buy regular plates. I'm sure glad that I ***led it in 2000...
also make sure you go to a ***le place or the sos to get this taken care of. if you go to a currency exchange even with a bill of sale they still come looking for you for the tax...why.. because those highschool drop out don't give a **** about sending in the BOS because it doesn't affect them. yep happened to me tk
A guy that works at the SOS says that now ANY '32-'34 ***le that comes through gets flagged and checked out. I just traded a '66 Nova to a fellow HAMBer that we had licensed and ***led for 14mos when they tried to extort $1600 out of us...didn't work.
They can go one better here in Taxachusetts.If you buy a car from some- one in this state,even though they give you a good ***le with the car,you have to go and pay for a new ***le!!Ongoing! Nice huh? Plus we have an auto excise tax. That is simply a tax on the right to own a car. This is besides the state tax you paid on the car. Tax on a tax is what it is. Plus, the excise tax is every year! Here's the best one. If you buy a car outside of M***achusetts, and register it in M***achsetts, you still have to pay the M***. state tax!! That's no bull!! Outrageous! The people in this state don't have the balls to fight it because they're intimidated by the politicians. We have the worst ones. They ought to line them up and throw them in jail.
In Oklahoma, even if you bring in a bill of sale for say, $500, the tag agent is going to look up the value of the vehicle, as according to NADA. If your BOS amount falls within 20% of the listed book value (let's say it's $2,500), you pay the tax on the $2,500 vs the $500 you actually paid for the vehicle! It's a state-sanctioned scam, no matter what State you are in. Everyone has their own ***pain to deal with, when it comes to getting reg and ***le on anything. Don't feel like the Lone Ranger.
"I am not defending the situation.............I don't like it either, but things could be a lot worse....A LOT WORSE.........we could be prohibited by statute from making modifications to our cars, regardless of age, and if permitted, only with onerous standards and inspections etc" Welcome to Oz...you guys have had it good for a while and the *****s in power want more money as allways so theyre starting to tighten the screws. Happened here 20 years ago. The Australian Tax Office should be on our National coat of arms. Rat
Now in NC if you bring a car from out of state that is 35 years old or older, it has to be inspected before you can ***le it. They are doing it for the money. They said they were losing tax money on restored cars.
I understand this a little differently. When I went to get the ***le transferred to me for the 33 Chevy coupe I bought in September, the gal at the Sec of State drivers office here in Monticello mentioned that if the price I paid seems to low, the Il Dept of Revenue might want an appraisal. I know of a local appraiser who would be happy to do the job and I would also send in my paid receipt for the car at the same time. Also in Illinois, If you buy a street rod kit from a business and ***emble it yourself, it must be inspected by Illinois' red tape system before you can get a ***le and that can take a year!
As stated above the current administration local,states and government is changing all the rules and increasing tax and generating any thing they can to pull in additional revenue as is some of the states.Property,credit cards ,cars and any thing else Government or states can think of it will be done so just be ready for the big screwing at some point. With additional stimulus monies being allociated it wont get any better.
if this is such a bright idea for private car transactions, why stop there? how about real estate? maybe that would be enough to completely finish off the stagnant real estate market.
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