One Dollar and other consideration... Legal?

[Bubba1235]

An intersting case has made it's way to the local court house and I wanted to hear opinions.

In short, a man sold a five year old pickup to a woman. In our state you are required to list the sale price on the Bill of Sale and the title. He, the seller, put in "One dollar and other valuable consideration" as the selling price. Local DMV had a fit because they collect sales tax on used vehicles and said the one dollar figure was not acceptable and after lots of "discussion" the local DMV clerk decided it fell under the "gift" rule, looked up the book value and charged sales tax accordingly. The buyer paid it and has filed a suit to get the money back.

So if you were the judge what would you do?



Just my take, a lot depends on what the "valuable consideration" is and if it has a real monetary value.

 

[fishrdan]

Re: One Dollar and other consideration... Legal?

That wouldn't be an issue out here as there is no sales tax collected on private party vehicle sales in NV...

Personally, I think it's BS that they are charging tax on book value as no "money" has changed hands, except for $1. I bet they charge tax on book value due to bartering, I'll give you something of "valuable consideration" for your property. Paint your house (or something else ) for that beat up old PU truck......

 

[Bondo]

Re: One Dollar and other consideration... Legal?

An intersting case has made it's way to the local court house and I wanted to hear opinions.

In short, a man sold a five year old pickup to a woman. In our state you are required to list the sale price on the Bill of Sale and the title. He, the seller, put in "One dollar and other valuable consideration" as the selling price. Local DMV had a fit because they collect sales tax on used vehicles and said the one dollar figure was not acceptable and after lots of "discussion" the local DMV clerk decided it fell under the "gift" rule, looked up the book value and charged sales tax accordingly. The buyer paid it and has filed a suit to get the money back.

So if you were the judge what would you do?



Just my take, a lot depends on what the "valuable consideration" is and if it has a real monetary value.

Ayuh,.... That's how it's done here in the Progressive NYS...

If the clerk don't like yer stated value, they just list "Book" value...

 

[rbh]

Re: One Dollar and other consideration... Legal?

Sell as needing work, non driveable.

 

[Alwhite00]

Re: One Dollar and other consideration... Legal?

In michigan they will assess their own value if they think you are "cheating" on the numbers - I think it's BS to pay tax every time a vehicle changes hands, Now the state wants to add $120.00 to every registration to pay for the roads that we are already paying for with the gas tax.

Sorry, Got a little off track there.

LK

 

[Summer Fun]

Re: One Dollar and other consideration... Legal?

I bought a scooter for $350 bucks and when I went to DMV to put it on the road.

The DMV lady said no way did you buy that for $350. YES I did I said.

I'll be right back she said, Well you either pay book value of $1.800 or its not going to be registered.


Its still sitting in my garage unregistered.



Welcome to $uckhole NY.

 

[southkogs]

Re: One Dollar and other consideration... Legal?

Whenever we pull a transaction like that (typically family or good friends) we write a gift letter and sometimes have it notarized. That seems to satisfy the county clerks here in TN.

 

[JB]

Re: One Dollar and other consideration... Legal?

The last car I bought was for a toughly negotiated price. When I went to register it the clerk looked up in a book and told me I didn't pay enough for it. She then charged me the sales tax on the book value. I was too shocked to say anything.

 

[Jeep Man]

Re: One Dollar and other consideration... Legal?

In Ontario, the MOT (Ministry of Transportation) go by a book value, regardless of what you paid. The exceptions are if you have an appraisal done by a registered appraiser, or gifting it to an immediate family member. Both giver and receiver have to show up at the MOT. The last appraisal I had done cost me $40 and saved me $360 in tax.

 

[Tail_Gunner]

Re: One Dollar and other consideration... Legal?

Highly polictical subject for state's. In the state of oregon free or $1.00 is meaning less. I worked for a company that offered free tires for life. There was no internal charge to sale's cost or accounting in the sales dept it was free. I would be guessing that the service dept absorbed the cost who know's. However the states attourney stepped in and bascially free is not acceptable and you must disclose a cost to the customer..that ended up being 100.00.

It was purely a move to generate taxes for the state...free service's well there are none here cant pass on the almighty buck.

 

[coolbri70]

Re: One Dollar and other consideration... Legal?

i get taxed based on my vehicles book value every year, even though i didn't buy anything, taxed just for owning something i made myself:facepalm: the 1 dollar thing used to get you out of taxes

 

[NYBo]

Re: One Dollar and other consideration... Legal?

Ayuh,.... That's how it's done here in the Progressive NYS...

If the clerk don't like yer stated value, they just list "Book" value...

I bought a scooter for $350 bucks and when I went to DMV to put it on the road.

The DMV lady said no way did you buy that for $350. YES I did I said.

I'll be right back she said, Well you either pay book value of $1.800 or its not going to be registered.


Its still sitting in my garage unregistered.



Welcome to $uckhole NY.

You guys are being misled. When buying a vehicle at below book value, the seller must complete section 6 of the DTF-802 form: Form DTF-802

 

[Part-time]

Re: One Dollar and other consideration... Legal?

Ontario started charging the book value back in the late 80s or early 90s.
My father had just bought a 1979 mustang for $200 but had put in a lot of work to get it roadworthy.
When the girl at the counter told my father he would have to pay taxes on $2,500 my father started yelling "rape, help rape!!!"
The girl looked completely horrified.
My dad then said "Well I'm getting f***** and I'm not liking it... so that's rape!"

 

[Grub54891]

Re: One Dollar and other consideration... Legal?

Had the state call me once claiming there is no way I only paid 100 for the car. I simply said it needed a new motor and tranny then it was ok!
Grub

 

[aspeck]

Re: One Dollar and other consideration... Legal?

Be careful on the politic parts of this. What you did, or have to do is okay, but watch the opinion ... this thread could become a "hot topic." Just trying to keep it okay.

 

[matt167]

Re: One Dollar and other consideration... Legal?

I'v never had a real issue, and I have bought/ sold plenty of vehicles and most times get something for less than 50% of book, always needing some work of course. I also go to a very small DMV of which the workers do not ask a lot of questions and help out when they can. Only time I came close to being assigned the book value is when I bought my truck for less than 1/4 of book value because the rear end was blown, but when I told her that, she put it thru. Truck booked for $4k at the time, and I paid $800, so it would have been a big difference

 

[rbh]

Re: One Dollar and other consideration... Legal?

Ontario started charging the book value back in the late 80s or early 90s.
My father had just bought a 1979 mustang for $200 but had put in a lot of work to get it roadworthy.
When the girl at the counter told my father he would have to pay taxes on $2,500 my father started yelling "rape, help rape!!!"
The girl looked completely horrified.
My dad then said "Well I'm getting f***** and I'm not liking it... so that's rape!"

YAAAA, Good one!!!

 

[ronboonville]

Re: One Dollar and other consideration... Legal?

So if I was a judge in Missouri I would do what all the judges do. Find the State right, find the taxpayer guilty of fraud or blasphemy, and of course charge him with court costs. oops. Ever try to find out who is in charge of what in Missouri? I usually put in a figure that might be kinda believable then say something like hope I can get it towed. or I'm going to the paint store to get more brushes and rollers to paint it.

 

[glenn property of pam]

Re: One Dollar and other consideration... Legal?

ive bought lots of cars for way under book price and ive never heard of this happening. it might be as most of the cars i buy are to restore/repair so i dont tag them at the same time. i was surprised that the police check was also free and they come out to where the car is to do the vin inspection if it was a out of state car. i know that we have gifted cars with in the family so the person driving has to get there own insurance and they have never had a problem with that either they just charge for the title/tag.
if the seller will swear under oath that the car was sold for a dollar then i can not see the problem. i hate to pay tax but i can see the other side of the coin or every car would be traded for $1 with a $5k delivery fee.

 

[coolbri70]

Re: One Dollar and other consideration... Legal?

ive bought lots of cars for way under book price and ive never heard of this happening. it might be as most of the cars i buy are to restore/repair so i dont tag them at the same time. i was surprised that the police check was also free and they come out to where the car is to do the vin inspection if it was a out of state car. i know that we have gifted cars with in the family so the person driving has to get there own insurance and they have never had a problem with that either they just charge for the title/tag.
if the seller will swear under oath that the car was sold for a dollar then i can not see the problem. i hate to pay tax but i can see the other side of the coin or every car would be traded for $1 with a $5k delivery fee.

yes, i loved the way it was when i lived in FL:joyous: its not as good here in WV.:facepalm: get run around alot here, have to go 4 places to get tags