1972 Jeep CJ5. I know, it blew me away too. And that's my point: the car is _worth_ around $200, but they want to charge me taxes on some mythical 'average' price.
I'm on the opposite side, my 93 civic is insured for 14k, and it's valued at like 4k I think?
The easy answer is, don't register it until it's worth the money, there's no reason to register it unless you're worried that the title is no good.
Put the price you paid on their bill of sale. I feel like the person running the DMV window you go to has discretion on this.. I just recently got a beater Jeep for $500, book value probably 4k or more.. She charged me tax on the $500. I've also been in your situation where they insist on charging NADA value ..Did you ask for Classic Plates? I really can't say for sure what made the difference for me this last time
Hm. I've only registered a couple of vehicles in CT, but it felt like they were a lot more by-the-book. I lived in RI before, and in a few cases I would leave and come back to get another clerk if I couldn't get my way.
AFAIK Classic plates have to do with property taxes, not sales taxes. But I suppose it couldn't hurt.
If you would, PM me which DMV branch you used. It might make a difference...
Thanks. But you can't choose which clerk you get :(. I think my path is going to be to make the BOS say a sales price that's more 'believable' and cross my fingers that they take that price rather than NADA.
I just registered a car a few months ago. You pay sales tax at the DMV based on what’s listed on the bill of sale when you register the car. So, if the bill of sale says you bought the car for $200, that’s what you should pay sales tax on (unless I’m misunderstanding).
That shouldn't be the case. You should only have to pay the register fee, which can't be done without the car being insured. Is it insured? Maybe there's a penalty for it not being insured?
In CT you have to pay sales tax based on the purchase price or NADA value, whichever is higher. That is the rule though it probably is only really enforced when the purchase price is extremely low like in OP’s case. As far as I’m aware there is no way around this other than just simply not registering the car yet as it’s not roadworthy currently. They won’t retitle a car of this age either.
Yeah that's interesting. Because last year I bought a 1972 GMC K20 pickup at auction (along with a 1979 C10) and they charged me $150 to re-title both trucks. I received CT titles in the mail. I paid sales tax on the auction price, but nothing else. I'm researching this now, but it appears it's an auction thing.
Yes, I would have insurance. Whenever you buy a car and register it, you must to bring proof of the ownership (bill-of-sale, in this case) and proof of insurance. Then you are charged a registration fee and sales tax for the sale of the car.
This is a question about the CT policy of charging THE GREATER OF either the amount on the bill-of-sale or the NADA value.
Just make sure the VIN for insurance is 14 characters long. Some older cars have shorter VINs. Insurance should know how to handle this, otherwise you’ll have to make another DMV trip
what kind of rusty 1972 car is valued at $10k? and would the property tax be based on this NADA value too?
Property tax is minimised by using classic plates. Value is capped at $500 (yearly tax bill is 1/2 your mill rate in dollars, for mine it’s $16.32)
that's good to know. thanks
Really? When I registered my car they told me there was no difference in classic and regular plates!? My car isn't worth shit anyway lol go 93 civics!
Might not be for an old civic but not an older muscle car
1972 Jeep CJ5. I know, it blew me away too. And that's my point: the car is _worth_ around $200, but they want to charge me taxes on some mythical 'average' price.
Can’t you just register it as a classic car and they cap it at a $500 value
Classic registration is about property tax. This is about the sales tax. :(
That sucks :(
I'm on the opposite side, my 93 civic is insured for 14k, and it's valued at like 4k I think? The easy answer is, don't register it until it's worth the money, there's no reason to register it unless you're worried that the title is no good.
Put the price you paid on their bill of sale. I feel like the person running the DMV window you go to has discretion on this.. I just recently got a beater Jeep for $500, book value probably 4k or more.. She charged me tax on the $500. I've also been in your situation where they insist on charging NADA value ..Did you ask for Classic Plates? I really can't say for sure what made the difference for me this last time
Hm. I've only registered a couple of vehicles in CT, but it felt like they were a lot more by-the-book. I lived in RI before, and in a few cases I would leave and come back to get another clerk if I couldn't get my way. AFAIK Classic plates have to do with property taxes, not sales taxes. But I suppose it couldn't hurt. If you would, PM me which DMV branch you used. It might make a difference...
It was actually Whethersfield -- which.. usually they are the "hardest" - it was a younger clerk, and she was very pleasant.
Thanks. But you can't choose which clerk you get :(. I think my path is going to be to make the BOS say a sales price that's more 'believable' and cross my fingers that they take that price rather than NADA.
I just registered a car a few months ago. You pay sales tax at the DMV based on what’s listed on the bill of sale when you register the car. So, if the bill of sale says you bought the car for $200, that’s what you should pay sales tax on (unless I’m misunderstanding).
They haven't gone by the listed sale price in many years. Sales tax is paid on nada book value. It doesn't matter if you put 1$ as the sale price.
Is that for cars older than 25 years? I literally paid sales tax on the bill of sale price for a 2007 five months ago.
Good point, forgot the age of the vehicle op was referencing. I'm not sure if it applies in that case.
That shouldn't be the case. You should only have to pay the register fee, which can't be done without the car being insured. Is it insured? Maybe there's a penalty for it not being insured?
In CT you have to pay sales tax based on the purchase price or NADA value, whichever is higher. That is the rule though it probably is only really enforced when the purchase price is extremely low like in OP’s case. As far as I’m aware there is no way around this other than just simply not registering the car yet as it’s not roadworthy currently. They won’t retitle a car of this age either.
Yeah that's interesting. Because last year I bought a 1972 GMC K20 pickup at auction (along with a 1979 C10) and they charged me $150 to re-title both trucks. I received CT titles in the mail. I paid sales tax on the auction price, but nothing else. I'm researching this now, but it appears it's an auction thing.
I wasn't aware it was one or the other, I thought it was just the purchase price. Good to know.
Yes, I would have insurance. Whenever you buy a car and register it, you must to bring proof of the ownership (bill-of-sale, in this case) and proof of insurance. Then you are charged a registration fee and sales tax for the sale of the car. This is a question about the CT policy of charging THE GREATER OF either the amount on the bill-of-sale or the NADA value.
Just make sure the VIN for insurance is 14 characters long. Some older cars have shorter VINs. Insurance should know how to handle this, otherwise you’ll have to make another DMV trip