used bike tax in texas - Wrist Twisters
 
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post #1 of 12 Old 05-26-2008, 05:40 AM Thread Starter
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used bike tax in texas

Both a friend and I have bought used motorcycles in texas from private sellers in the last 45 days. When transferring the titles, we were both charged sales tax, 6.25%, based on some sort of "book" value, not what we actually paid. It had been comon to understate the price to save tax. Anybody here know more about this?

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post #2 of 12 Old 05-26-2008, 06:09 AM
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This is for Kentucky. The Affidavit of Total Consideration is what they use if you fill it out, or the retail value if not. I sold a truck over book one time and the lady at the courthouse told the guy he wanted to declare retail value, which is the opposite of what you are referring to.

There is a section on the affadivit where you sign that you are declaring a truthful price. It's a Class D felony in Kentucky if found otherwise. Do a search of DMV for Texas and you can find the info for your state.

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When transferring a vehicle you will need to pay usage tax at 6% of the retail value of the vehicle OR 6% of the purchase price if a completed Affidavit of Total Consideration is presented OR 6% of the purchase price if the back of the new Kentucky title is completed. Also property tax may be required to be paid if it is due or past due.

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post #3 of 12 Old 05-26-2008, 06:21 AM
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I'll see if I can't dig up the paperwork, but I believe mine was based on the price stated on the bill of sale/title.

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post #4 of 12 Old 05-26-2008, 07:43 AM
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I've heard MN has gone to the same system recently for used vehicles but I haven't bought anything lately so I haven't experienced first hand if it's true or not.

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post #5 of 12 Old 05-26-2008, 12:20 PM
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All I can tell you is, I was charged $65 for 'rebuilt fee' and $312.55 for the registration. That may be chocked up to Bexar county/San Antonio City taxes, as the 'amount paid' was $2700.

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post #6 of 12 Old 05-29-2008, 12:11 PM
 
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Texas has gone to a "black book value system." You can no longer just fill in the information. Dealerships are the only exception (I don't know how they work). Straight off the dmv website:

A new state law took effect on October 1, 2006, that requires all Texans who buy a used vehicle from anyone other than a licensed car dealer to pay sales tax on the vehicle’s Standard Presumptive Value.

You can preview the Standard Presumptive Value of a used vehicle by entering the vehicle identification number (VIN) and odometer reading (not needed for motorcycles) in the boxes below. Please note:

The Standard Presumptive Value presented here is subject to change and should be used for estimation purposes only.
Values are updated weekly.
Actual sales tax due is calculated at the county tax office when the title transaction is submitted.
Values for some late models may not be available.


http://www.dot.state.tx.us/services/...tive_value.htm

Go to the link with the VIN and odometer and it will tell you how much you will pay...

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post #7 of 12 Old 05-29-2008, 05:42 PM Thread Starter
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Thanks cunningham919. I paid $900 more than the presumptive value for a nice old 1993 honda ST1100 so I just shut up and paid. My friend paid $3750 for a 2003 GSXR1000 in rough shape, presumptive value 7850. It has a clean title,not salvaged, so it looks like he is going to have to pay up.

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post #8 of 12 Old 05-29-2008, 05:51 PM
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So if the bike is beat up the seller will have to lower their price further to cover the tax delta. Now it could make sense to sell it WITH the upgrades.

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post #9 of 12 Old 05-29-2008, 05:55 PM
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yeah, we lie about the purchase price here and usually do not get caught.
if you stretch the truth too much, you get a nice letter in the mail requesting more tax money.
Family members in this state are permitted to sell a vehicle to another family member for $1 thus negating the sales tax.

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post #10 of 12 Old 05-30-2008, 12:04 PM
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I had to provide a written letter from me and the seller and pictures of a damaged 'motorcycle' once to justify what I claimed I paid...

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post #11 of 12 Old 05-30-2008, 12:22 PM
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Quote:
Originally Posted by gpzTurbo View Post
yeah, we lie about the purchase price here and usually do not get caught.
if you stretch the truth too much, you get a nice letter in the mail requesting more tax money.
Family members in this state are permitted to sell a vehicle to another family member for $1 thus negating the sales tax.

Kentucky would want the $.06 on that dollar.

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post #12 of 12 Old 05-30-2008, 12:37 PM
 
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Quote:
Originally Posted by gpzTurbo View Post
yeah, we lie about the purchase price here and usually do not get caught.
if you stretch the truth too much, you get a nice letter in the mail requesting more tax money.
Family members in this state are permitted to sell a vehicle to another family member for $1 thus negating the sales tax.
You are allowed a "gift" tax here still. My mother and step-father let us have their Ford Focus when they bought their last vehicle. I don't remember what we had to do to get it, but it was pretty simple.

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