Inflation and Taxation

[HomeMadeSin]

Circa 1986 or so, I had to register my 1972 VW Beetle for a small amount. I don't recall the exact amount, but it was within my means on a minimum wage Burger King job. I do recall later getting a REFUND from the DMV for $2.44 - they had charged me too much.

Fast forward to my 1967 C-20 project. The previous owner had lost the title and just mailed me a new one. So, as prepared as I could be, I head down to the local DMV office to get it titled in my name. I was not going to do any upgrades until I had everything legit.

For reference, here are some pics of the C20 that I paid $500 for:







Well as everyone knows, the DMV has wised up to the shysters that claimed a lower purchase price than reality and use fair market value. I truly paid $500 for this and even showed the clerk pictures to validate it. It's clearly not ready to menace the streets just yet, so I just had to pay a whopping $23! That was an early Christmas present.

I had to travel to Canada later that week but got a call from the County that they incorrectly calculated the fee. The lowest fair market value for a 1967 fleetside V8 C-20 was....$27,000. The high fair market value is $68,000.



So, they came up with some modified amount that I have to pay the day after Christmas (first day we are both available) and only after that can I petition to have someone come out and look at the truck. I simply can't wait.

I told them if they think it is worth $27,000, I will sell it on the spot for half that amount....

Where are they getting these numbers? Barret-Jackson?!?

Z

[AussieinNC]

Some DMV clown spent 5 minutes n the web and googled 67 Fleetside C-20 and chose the highest priced unit...

KBB only goes back as far as 1992...

Demand to know how they came to that value...

This is what is killing our hobby....

Keep us informed

[Boog]

It's things like this that make me want to get mine registered now even in it's unfinished state but I have to show proof of insurance at that time too. I can't justify paying regs and insurance for a vehicle I can't regularly use yet.

[special-K]

In 5 minutes on the web you can find far cheaper trucks than $27k. Don't steal. The government hates competition. That's all there is to it, they want to steal from you. Here in MD, a big on regulations and fees state (bad enough that they came up with an exodus tax because so many are leaving), they only go by book on late models. It's not thank Barrett-Jackson, it's thank Kelly Blue Book. They jumped on the classic value band wagon when all the years they've existed they ignored anything over 5 years old. They exist for bank loans. No classic car experience or knowledge from all those years. Just a farse.

[panhead59]

Many states have various ways to calculate value of old vehicals. On something old, i think it's 20 yrs. Here in Va., they will go by a bill of sale value. Much more fair.

[Grumpy old man]

I bought this solid 67 TITLED cab last year and went down to DMV to switch it over , In 5 minutes I left with a new Tn title and registration / plates Cost : $60.00

And NO reflective fee !

Now I'm wonder where do I mount the tag ?

[Grumpy old man]

it looks a little different now .

[flashed]

I think something is WRONG in your tag office . Here in Cherokee county Ga they have a State Fee they go by . I buy lots of trucks and NEVER been assessed those kind of fees .

[tjc]

Take a picture of the truck to your local bank and ask what the loan value would be.

[rjs53]

I'm going out on a limb here. I'm gonna say that one of our typical state workers didn't take the time to get a good look at the amount, and mistook it for 27,000 when its more like $2700. I say our typical state worker because their all that way. Just my 2cents

[weq92f]

.
Here in TX, they started doing something similar. It's a cash grab. Just like the credit card reader at the window at the DMV with its 2.34% fee ( cash grab ). Everything seems to come down to a cash grab these days.

Even with a bill of sale and solid proof of the purchase price, if the DMVs calculated value is higher, that's what we pay taxes on!

I think in OPs case though the difference is obvious enough to get the decision reversed.

It is also possible that just going and talking to a different clerk may produce a different outcome! Not all clerks have the same level of... er... concentration or dedication to the tasks in front of them. Some like to nail the customer to the regulations while others don't really seem to give a hoot! YMMV.

-klb

['68OrangeSunshine]

I would think about seceding from my county, if they pulled that on me.
In Arizona, it's a state agency: ADOT/MVD.
In 2006 I bought a half-truck trailer made from a C/2500 bed and frame. It had no VIN without a front end. The state glued on their own VIN.
I paid a farmer in Chandler $200 for the trailer. I took it into the nearest MVD office in Mesa to get legal. Getting the trailer a new plate and sticker cost me $196.00. I cussed, at hearing the price and the MVD clerk admonished me for taking the Lord's Name in vain.
So my $200 trailer became a $400 trailer.
At least the sticker is permanent, not paid annually.

[Shinysideup]

I had the Fl DMV try and crack wise on titling my model A years back. It was a fixer upper and they balked at the $1200 sales price as if ALL old cars are high end show cars. I think I had to show them the bill of sale or sign affidafid(sp?).
Their level of competency is low in that every time I register an older car they cant comprehend the vin having so few digits. Jeez.

[HomeMadeSin]

Originally Posted by rjs53

I'm going out on a limb here. I'm gonna say that one of our typical state workers didn't take the time to get a good look at the amount, and mistook it for 27,000 when its more like $2700. I say our typical state worker because their all that way. Just my 2cents

You know, thinking about this a bit more...both in person and later over the phone, she clearly said $27,000 (twenty-seven thousand) and $68,000 (sixty-eight thousand). I wonder if she meant $2,700 (twenty-seven hundred) and $6,800 (sixty-eight hundred). That is much less ridiculous. And wouldn't surprise me. Maybe I should've asked how many zeroes?

It doesn't change the fact that I will challenge it and ask them to come to my residence and check it out. Because the reaction should be....priceless.

Z

[Grumpy old man]

This is the exact reason any truck I'm going to build has a clean and clear in my name title BEFORE doing any work on it . Just think what they would do to you if you showed up with a completely restored /finished truck and tried to tell them you paid $500.00 for it . You'd have to pay taxes on the high end retail #

[73kay]

Yup, bought a 85 blazer in Texas, told the the same price was $500 and they came up with their own value, so out the door I was $140 in, but it had antique plates and I'm good for a couple of years.

[flashed]

Georgia wont issue Titles on old stuff . I bought a one owner truck with Title and they said it was out of the system and the state will not issue a Title . Now if that same truck was bought out of state they will issue a new Title .

[HomeMadeSin]

Mine was bought from a friend in CO. She said I would see a title in a few weeks but like I said, she said other things too. I will find out more on the 26th.

[weq92f]

.
How many zeroes... Very Nice!

Originally Posted by HomeMadeSin

You know, thinking about this a bit more...both in person and later over the phone, she clearly said $27,000 (twenty-seven thousand) and $68,000 (sixty-eight thousand). I wonder if she meant $2,700 (twenty-seven hundred) and $6,800 (sixty-eight hundred). That is much less ridiculous. And wouldn't surprise me. Maybe I should've asked how many zeroes?

It doesn't change the fact that I will challenge it and ask them to come to my residence and check it out. Because the reaction should be....priceless.

Z

[Overdriven]

There a YouTube channel called Vinwiki that does a bunch of mostly exotic car related stuff. They did a couple videos recently on the Montana license plate loophole and how Georgia came down hard on those using it to avoid Georgia taxes.

The way the host explained it Georgia vehicle sales taxes are ridiculous and don’t take into account vehicle condition. The host had a 2003ish Mercedes AMG he bought for $1500 because it was a salvage title, 200k miles, and a laundry list of issues making that a realistic price. But Georgia didn’t care and used the value of one in the best possible condition with the lowest miles, over $20k value if I recall, to calculate the taxes owed. The host didn’t mention a way to appeal the tax decision, sucks that you have to pay before appeal though. Keep doing your own research, you may find another route or way to prove vehicle value before having to pay.

[flashed]

I recently insured and Tagged a 69 Chevy Van so that my buddy in Ohio could get it Titled in Ohio once he got it home and the Tag Registration in Cherokee County Ga was only $20 .Apparently these old vans are hard to find up there and I found him one for cheap. I still think someone in that tag office is clueless .

[rjs53]

I was out in the middle of no where, Carlin Nevada. Found a guy that had a couple of acres of old rusty classics. Asked if he wanted to sell some, and he pulled out a blue book for old vehicle. Started quoting prices like the DMV. That was about 5yrs ago. A friend went by there not long ago and its all still there. Maybe he gives the DMV their information.

[HomeMadeSin]

Alright, fresh from my latest DMV visit. The recognized fair market value was in fact $28,200. Previously, I had paid $18 title fee plus $5 Title Ad Valorem Tax (1% of $500). It seems they charge 1% instead of 7% of FMV based upon the age of the vehicle.

So today I had to pay the difference (1% of $28,200 = $282 minus the $5 already paid so out the door with $277 less in my pocket).

I did file an appeal so I will post when more as developments occur. I think I will try my best to convert to old vehicles across the board to avoid surrendering anymore taxes than required to the state. $277 is a drop in the bucket compared to the $2,300 I had to pay for my '15 Eco-diesel, but the principle of the issue gets me.

Z

[kwmech]

Tell the person at the DMV that you will sell them the truck for a discounted price of 10k

[cypressbog]

So they take your cash first then you can appeal? I say good luck once they have your money it's gone forever.