jinman
Rest in Peace
- Joined
- Feb 23, 2001
- Messages
- 21,008
- Location
- Texas - Wise County - Sunset
- Tractor
- NHTC45D, NH LB75B, Ford Jubilee
...from my neighbor. It has about 330,000 miles and runs like a top. It's also very nice inside and out, but she thought it had a blown headgasket. I found a pinhole leak in the heater hose and fixed it for her, but alas, she had lost confidence in the car and wanted to get rid of it.
So, I offer her $1500 for it. She is excited and so am I because it's a great little commuter car that gets nearly 30 mpg. It will be much cheaper transportation than my 3/4 ton Dodge Cummins Diesel.
I have all the documents needed to transfer title in Texas. So, yesterday morning I gave my wife $150 and ask her to stop by the tax office. Texas has a 6.5% sales tax on vehicles, so that is about $93.75, right? WRONG!
When my wife went in, they said that 80% of the book value of the car was $2200 and the sales tax would be $137.50. It does not matter that I have proof that I paid $1500 or even that the car is running. The tax is now assessed on the book value rather than the actual cost. I somehow missed the change in the law. I don't like it. They say this will keep people from claiming they paid very little for a car to avoid taxes. I say it will make a lot of people not file for a new title at all. You don't need a title to register or insure a car in Texas.
What do you think? I know the reasoning (or lack of it) that this will make more money for the state. Do you agree, or do you think more people will just avoid the title transfer?
I don't want this to be a political discussion. It's just a "them against us" issue in my opinion that targets honest folks in the middle class who try to do things right. Okay...rant over.
So, I offer her $1500 for it. She is excited and so am I because it's a great little commuter car that gets nearly 30 mpg. It will be much cheaper transportation than my 3/4 ton Dodge Cummins Diesel.
I have all the documents needed to transfer title in Texas. So, yesterday morning I gave my wife $150 and ask her to stop by the tax office. Texas has a 6.5% sales tax on vehicles, so that is about $93.75, right? WRONG!
When my wife went in, they said that 80% of the book value of the car was $2200 and the sales tax would be $137.50. It does not matter that I have proof that I paid $1500 or even that the car is running. The tax is now assessed on the book value rather than the actual cost. I somehow missed the change in the law. I don't like it. They say this will keep people from claiming they paid very little for a car to avoid taxes. I say it will make a lot of people not file for a new title at all. You don't need a title to register or insure a car in Texas.
What do you think? I know the reasoning (or lack of it) that this will make more money for the state. Do you agree, or do you think more people will just avoid the title transfer?
I don't want this to be a political discussion. It's just a "them against us" issue in my opinion that targets honest folks in the middle class who try to do things right. Okay...rant over.