California Sales Tax on a Used Car?

A&Q about Lotus

Q:
If I buy a car from a private party and I go to register the car at the DMV, I assume that's where I will pay the sales tax (8.25?%)? Who determines the value of the car that I pay the sales tax on?? Is it just my "word" how much I bought the car for?? Or do I need a receipt or what?
A:
You will need a bill of sale from the seller showing the price you paid for the car. Careful if it is way under the actual value...Wouldn't want to trigger an audit would you?
A:
I just sold an old car and I put "gift" and $1 for the value. This will help with the sales tax. Of course the actual sales price was only $150, anyway.
A:
If you put gift or the value is just absurdly low then the dmv uses kbb value.
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Just out of curiosity I went to KBB to see what an '05 is being listed at and when I hit the drop down menu for car make, LOTUS isn't even listed! I noticed this on several "cars for sale" websites as well. No respect!
A:
just a suggestion, but if you are going to commit fraud, i would post about it on the internet. you never know who is reading this stuff. I had a buyer who was in california, and he asked me to write a forged reciept for the very reason you are, I said "thanks but no, you do what you want, but i am not going to participate."
the sale fell through, and it was for the best anyway.
honesty is always the best policy. how much are you thinking you will save, and what is the penalty if your caught, and is it really worth it?
Fish
A:
if you have a ridiculously low number they wil know that your are lying and i am sure that it can be easily tracked, cashiers checke, finance, etc... so if you are going to do it, i would recommend at least making it believable.

i believe that this is a bunch of BS though. anyone ever hear about double taxation? CA DMV gets around this i think by calling it a "registration fee" which is based on the sales price.... its just the same fat lady in a different dress.....
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I love you all
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I sold a car to a guy from Texas. When he came to pick up the car he asked me to low ball the sales price on the Texas DMV form. Caught off guard by the request, I was considering it and then noticed on the form where it said that falsifying any information on that form was a felony. Not being really interested in getting to know big tattooed guys on a more intimate basis, I declined.

I'm not sure, but I expect it is the same in CA.
A:
Originally Posted by Crow331 OK Mr. Goody Two Shoes .... I'm just thinking aloud here! Don't turn me in pleaseeeeeeeeee I would be a first time offender so I'm sure I'd just get a slap on the wrist. Maybe they'll send Schwarzenegger after me personally! Fun ! I'll take my chances to save a buck, they have bigger fish to fry than me

I've done this for overseas bidders on ebay all the time. They've asked me to put GIFT and low ball the value otherwise they get taxed up the ying yang ... I figure I'm due a freebie for all my good will overseas
Totally understand your position...However...it is simplistic to state that you are due a freebie. The taxes/penalties will FAR exceed your projected savings.
A:
Move along, move along ... nothing to see here ... these aren't the droids you're looking for
A:
Originally Posted by Crow331 I'm looking at a $33K '05 Elise .... am I asking for trouble with a "receipt" of $25 K ?? Could save me $700-$800

Just out of curiosity I went to KBB to see what an '05 is being listed at and when I hit the drop down menu for car make, LOTUS isn't even listed! I noticed this on several "cars for sale" websites as well. No respect!
$25K would be fine. Get the seller to make out two bills of sale, one for the actual amount for you, one for $25K for the DMV.
A:
I've never heard of anyone getting into any sort of issue with a fudged sale price...
A:
Originally Posted by Crow331 OK Mr. Goody Two Shoes .... I'm just thinking aloud here! Don't turn me in pleaseeeeeeeeee I would be a first time offender so I'm sure I'd just get a slap on the wrist. Maybe they'll send Schwarzenegger after me personally! Fun ! I'll take my chances to save a buck, they have bigger fish to fry than me

I've done this for overseas bidders on ebay all the time. They've asked me to put GIFT and low ball the value otherwise they get taxed up the ying yang ... I figure I'm due a freebie for all my good will overseas
I think he is just trying to help you out, and I agree, if you are going to do this, I would not post about it online. I doubt anyone here is going to report you; but if I were you, I would just delete this post.

Mary Poppins (good friend of Mr. Goody Two Shoes)
A:
Just be careful
A:
Has anyone ever stop to think that maybe you are putting Randy at risk by posting it on his forum?
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I doubt it will get anyone in trouble except maybe me ... but I'll delete this thread just in case if someone will tell me how. My original question was answered anyways. I tried to delete a thread once before and couldn't figure it out.

Larry, I think you deleted one of your threads before, how do I do it?

Thanks for the replys everyone
A:
I believe in California, if you sell the vehicle to a family member you can avoid the tax. I'm not sure but I seem to remember this happening with my wife selling a car to her sister years ago.
A:
Don't think you can delete the thread itself but, you can delete your posts.
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This brings up another topic though .... does anyone else think it's a complete ripoff that the government can get "sales tax" over and over and over on the same car depending on how many times the car is sold? The original FIRST BUYER should pay the tax and that should be the end of it. Any buyers after that should be free and clear! Just my opinion
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