Another RMV car tax question ( rare car - how do they come up with value)

Martinilover

Martinilover

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Ok I know that the MA charges sales tax based on nada value for used cars. What happens if you have a supper rare car? Perhaps a car so rare that it’s not listed on nada website?
Let’s say a car so rare that there may be only one in the USA? Would they be forced to go by bill of sale price?
 
Yes. I had that exact situation and they charged me tax based on bill of sale.
(I thought they always use bill of sale..)

..exise tax paid annually to my town is super cheap, based on NADA maybe, which is nice
 
Yes. The RMV calls the state tax assessor (or whatever they are called) if not in their database. Tax guy looks it up on NADA. If that model etc does not show they go by whatever is on the bill of sale.
 
Martinilover said:
Ok I know that the MA charges sales tax based on nada value for used cars. What happens if you have a super rare car? Perhaps a car so rare that it’s not listed on nada website?
Let’s say a car so rare that there may be only one in the USA? Would they be forced to go by bill of sale price?
Click to expand...

They look up the highest sale price of a similar vehicle sold at the Barrett-Jackson or Mecum auctions.
 
Martinilover said:
Ok I know that the MA charges sales tax based on nada value for used cars. What happens if you have a supper rare car? Perhaps a car so rare that it’s not listed on nada website?
Let’s say a car so rare that there may be only one in the USA? Would they be forced to go by bill of sale price?
Click to expand...
I had an Aussie army military landrover (perentie) that they valued at north of $100k, when I only paid $13k for it. NADA had no vehicles attached to the VIN. The RMV actually allowed fair market valuation based on comparable sales here in the USA vs the high dollar Defender 110 that have risen in value the past 25 years.Good luck to you.
 
Boston Angler said:
I had an Aussie army military landrover (perentie) that they valued at north of $100k, when I only paid $13k for it. NADA had no vehicles attached to the VIN. The RMV actually allowed fair market valuation based on comparable sales here in the USA vs the high dollar Defender 110 that have risen in value the past 25 years.Good luck to you.
Click to expand...
Trick with this car is out side of this specific one none have ever been sold in the USA. Wonder what they will do?
 
Martinilover said:
Trick with this car is out side of this specific one none have ever been sold in the USA. Wonder what they will do?
Click to expand...
Well then, shouldn’t it be taxed on what it is worth? And, isn’t it worth what the guy paid for it? Bill of Sale.

Thanks.
 
Buck F said:
We issue plates in our office now & part of the process is doing the lookup for the sales tax, message me the VIN, make & model and I'll see what I can find.
Click to expand...
With all the money at stake here - legal action may be a possibility.

It may be worth litigating with a lawyer to save some money.

Of course, a stitch in time saves nine.

OP looks like he's getting his ducks in a row to avoid a big bill.
 
Mass drove away the auto restoration businesses with this scam they're running on valuations.
I've heard stories of guys that bought an incomplete basket case of a car and want to restore it, but end up getting porked by the RMV.
They want the sales tax when you title it. If they say it's worth 40k, you gotta cough up another 6.25%.
It doesn't matter if you really only paid $5k for the hulk and cardboard boxes full of parts, you either pay or go away without a title.
They don't care if the car won't actually be worth 40k until you put 50k+ into it!
They want their $2575 now, or sell it out of state, which is what many have chosen to do.
They only way around it (which the state frowns upon) is to involve a dealer, but since there are so many dealers with shady business practices, it shouldn't be hard to fine one.
 
Call rmv, they will give you a # for the dept of revenue. Call that #. Tell the guy your year, make model etc. He looks it up and will tell you the sales tax. Just did this a couple years ago with my AMX. If they were going to charge me full blue book I was going to have to wait. RMV wanted to process entire transaction with out telling me total first. Runner brought my paperwork back as I had told my agent not to go over $1000.

I then called the RMV and was told the process and given the # for the DOR. Called the # and the guy looked it up on the NADA site. He said there was no info so it would go by whatever was on the title. The info is on the NADA site but if you pull up the site on the computer you have to scroll down a little to find the value. In any event the runner was sent back and the RMV called the DOR they went by the purchase price and I was out the door for around $600.
 
This is more about excise tax.
I have an old lexus, 2000 ls400, years ago they stopped taxing me on the book value ($2500) and started taxing me a percentage of the original msrp ($80k).

It literally has the highest excise tax than all the 2014 and 2015 cars we have. Makes me want to take it off the road.
 
I actually remember the days when you could sell a car to a friend or relative and hand write a Bill of Sale for the sum of $1 to get around paying a sales tax. But those days are long gone.....
 
Coda said:
I actually remember the days when you could sell a car to a friend or relative and hand write a Bill of Sale for the sum of $1 to get around paying a sales tax. But those days are long gone.....
Click to expand...
You still can, as long as you fill out the gift form. Has been that way for a couple of decades at least.
 
Rick1987 said:
This is more about excise tax.
I have an old lexus, 2000 ls400, years ago they stopped taxing me on the book value ($2500) and started taxing me a percentage of the original msrp ($80k).

It literally has the highest excise tax than all the 2014 and 2015 cars we have. Makes me want to take it off the road.
Click to expand...
Excise has always been based on the original MSRP.
$25 per thousand of value (minimum tax is $5.00)

Value to base excise tax on: a percent of the original MSRP, based on year of manufacture. Using a 2000 model year car as an example:

Year b4 manu 1999 50%
Year of manu 2000 90%
Second year 2001 60%
Third year 2002 40%
Fourth year 2003 25%
Fifth & after 2004+ 10%

So, your $80,000 unit should now have an ongoing excise of ($80,000/1,000) x .10 x $25 = $200
 
Last edited:
free said:
Excise has always been based on the original MSRP.
$25 per thousand of value (minimum tax is $5.00)

Value to base excise tax on: a percent of the original MSRP, based on year of manufacture. Using a 2000 model year car as an example:

Year b4 manu 1999 50%
Year of manu 2000 90%
Second year 2001 60%
Third year 2002 40%
Fourth year 2003 25%
Fifth & after 2004+ 10%

So, your $80,000 unit should now have an ongoing excise of ($80,000/1,000) x .10 x $25 = $200

That's what you get for being a hotshot and buying such a special car . . . you want to act important, and appear important, you gotta pay . . .
Click to expand...
So rising used car value will not effect my excise tax?
 

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