Value of '95 C2 cab and "Porsche tax" in Massachusetts
02-26-2004, 12:58 PM
#16
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Mike, I feel your pain. Two years ago I brought in a Bill of Sale from a Florida dealer for $36k for my Cab - Taxachusetts set a value of $40k and I was assessed a $2K sales tax. "Have a nice day."
02-26-2004, 06:10 PM
#17
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Yep, that's how it seems to work here. At least they didn't whack you as hard as they did me :-)
I'm still very curious about the definition of sales tax in MA. Did more thinking about it, and I'm even more convinced now that it has nothing to do with _value_, it has to do with _sale price_, since it's not a value-based tax.
I'm still very curious about the definition of sales tax in MA. Did more thinking about it, and I'm even more convinced now that it has nothing to do with _value_, it has to do with _sale price_, since it's not a value-based tax.
02-27-2004, 03:43 PM
#18
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OK, update for local people.
I spoke to the MA Department of revenue. A very pleasant and helpful woman essentially told me several things:
1. There is a statute in MA that charges sales taxes on sale prices only _except_ for used cars bought from individuals or out-of-state dealers. In that case they charge on a "value" that they determine from full retail NADA book (who ever uses that anymore?)
2. She looked up my car and said thath her book is even higher than $29K with my mileage, somewhere between $32K and $35K with $1200 reduction for miles.
3. She told me very frankly that I can, of course, appeal, but it would be useless. They will reject it, then I'd have to take it to the board. To change statute? No, thanks.
So, there you have the whole story. If you are buying a car privately and live in MA prepare to pay what NADA says the car is "worth".
I spoke to the MA Department of revenue. A very pleasant and helpful woman essentially told me several things:
1. There is a statute in MA that charges sales taxes on sale prices only _except_ for used cars bought from individuals or out-of-state dealers. In that case they charge on a "value" that they determine from full retail NADA book (who ever uses that anymore?)
2. She looked up my car and said thath her book is even higher than $29K with my mileage, somewhere between $32K and $35K with $1200 reduction for miles.
3. She told me very frankly that I can, of course, appeal, but it would be useless. They will reject it, then I'd have to take it to the board. To change statute? No, thanks.
So, there you have the whole story. If you are buying a car privately and live in MA prepare to pay what NADA says the car is "worth".
