They changed. Now you can only be given a vehicle by an immediate blood relative. That's your brother, mother, grandpa, etc. Any Bill of Sale dated September 1st or after is subject to the new law.
This is of interest because last year, I believe, the laws changed on how the sales tax was calculated. Instead of being charged 6.25% of what you paid for the vehicle, you are now charged 6.25% of what the State of Texas says your car is worth. The State does not step out and look at your car, so the value has nothing to do with your car: the value is a flat-rate someone in Austin conjured up. An example, my 1991 RX-7, seen here (http://"http://www.racelubbock.com/forum/showthread.php?p=267601#post267601"), is worth $2200 according to the State of Texas. KBB won't even put a price on it. Another example, my 1996 BMW, seen here (http://"http://www.racelubbock.com/forum/showthread.php?t=18743"), is worth $4,450. KBB says it's worth $4000 at best, and I was relatively lucky to have sold it for $3500.
See this link to find out how much Texas says YOUR car is worth: http://www.txdot.gov/drivers_vehicles/vehicle_titles/std_presumptive_value.htm (http://www.txdot.gov/drivers_vehicles/vehicle_titles/std_presumptive_value.htm)
Exceptions apply only to immediate relative gifts, purchases from a dealership, or a bill of sale for a lower amount (if lower than the State's estimate, you will only have to pay 80% of the tax).
Now, I'm not going to say that I don't understand WHY these laws have been changed. I've taken advantage of the system before and probably would have again. However, I would not be complaintive in ANY way if I were being charged tax on a realistic amount. I think the system needs to be adjusted to represent realistic vehicle values.
Just a heads up to those who don't know.
States, counties, municipalities are hurting for tax revenue due to the current economic depression , and are re-assessing all methods of revenue collection.
I just received notice of property tax re-valuation on a 40 yr old non-classic car from $600 to $3000 ! Talk about arbitrary !
one thing I like about NH is no sales tax. They have registration tax for vehicles, use values based loosely on KBB. The amounts are usually pleasantly below reality. Also the tax drops in percent of the total down to near zero per year of remaining value. I pay something like maybe $9 annually in state tax for my 1988 EX250, maybe it was $25 for 2004 GS.
You pay tax every year on a bike you already own? That's interesting. I don't think we have anything like that in PA, unless I've been paying and not known it? I guess that's the trade off for no sales tax
Kind of like registration...we have to pay that annually.
Interesting system... in NY we pay registration every year on bikes and every two on cars/trucks (Edit: the amount is based on the weight of the vehicle, with a yearly use fee (I can't recall ever paying it though, maybe they lump it in)) - and there is a yearly inspection that must be done as well which is about $30.
I have recently become familiar with this new law in Texas.
They used to ask what you paid for your car/motorcycle and only tax you on the amount you told them.
This year they asked what I paid and said oh well you have to pay tax on the blue book value even though it is double what you paid for the bike.
I guess its karma since I told them my last car only cost me $50.00 :flipoff:
Quote from: tt_four on September 06, 2009, 06:12:07 PM
You pay tax every year on a bike you already own? That's interesting. I don't think we have anything like that in PA, unless I've been paying and not known it? I guess that's the trade off for no sales tax
I call it a tax but maybe NH gov speaks of it as a registration fee.
The way I see it is if the gov takes my cash for whatever and I have no choice in the matter then that is a tax, whatever they call it. Still, NH is a pretty low tax state, not much in the way of gov there. Plenty of property taxes to pay for schools though.
Well, in Florida you have to pay taxes and registrations fees and if you bring your car from outta state $300 fee! My bike and pos car costed me $90 for one year! Our DL renewal is doubling as of the first of this month. Yup, property taxes are going up too! Not to mention all of the new red light cameras and now driving without a seat belt is a primary offense meaning they can pull you over just for that.
I just wish they would give us a complementary roll of tape so that we don't have to hold our ankles!
Mary
I dont really have much to say except that I love rx-7s.
Sales tax here in MA just increase from 5% to 6.25%... It's happening everywhere.
(damn thieves.)
They have laws in Texas? :icon_razz:
Mostly regarding how the state can get your money, but a few all the same.