sales tax in massachusetts

[Midnight Specialist]

Should have told them it was a 5K beater


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[CFI]

Thats interesting I've never seen the mass rmv use a bill of sale to calculate sales tax. Should have had a smaller bill of sale written up!

Again, it’s been a long time since I’ve lived there but I’m sure it’s bill of sale, or the RMV’s evaluation, whichever is higher. Otherwise everyone would show up with a bill of sale for $1.

[David T]

If you have a Bill of Sale for a reasonable price (not $1), and can justify it based on condition, they might argue about the value but ultimately would have to settle and accept a lower amount. No way they can just look up a car in a book and say what it is worth without taking into account the condition it is in. A non-runner won't be worth book value.

[CFI]

No way they can just look up a car in a book and say what it is worth without taking into account the condition it is in.

Why not? That’s exactly how excise tax works. Your car is assigned a value by the town, and you are taxed accordingly. In the many years I have paid excise tax no one has ever come to my house to evaluate any of my cars prior to assigning them a value.

Can you fight it? Maybe. But.......it’s called TAXACHUSETTS for a reason.

[CFI]

I was correct:

“If the motor vehicle is casually sold (not sold by a dealer or lessor), the use tax rate is 6.25% of the greater of:

The actual amount paid for the vehicle, or
The vehicle's clean trade-in value (book value)”

One way or another, Taxachusetts will get your money!

[TheStoot]

Yes I knew this but I've never heard of them using any type of bill of sale so I was wondering what value from the nada guide would be used because there is a low, average and high price listed under delorean.

[CFI]

Yes I knew this but I've never heard of them using any type of bill of sale so I was wondering what value from the nada guide would be used because there is a low, average and high price listed under delorean.

Assume the worst, that way you’re covered.

[Midnight Specialist]

I had to bring a bill of sale due to the buyer being in CT and they don’t issue titles for vehicles over 20 years old. They had me for the full price. However, it might be different for you, but since DeLorean is not in the system, I’m not sure. I would bring your bill of sale just in case in case they can’t look up the amount and won’t issue.


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[clenet]

Who from Massachusetts can help answer this for me? What NADA value do they go by for value at the registry?

The NADA values are 19,000 low 33,900 average 55,200 high They will go for the low value.........but sometimes if you have a kind person at the DMV they will let you get away with a lower value if you have a bill of sale. It is worth a try, but be ready to pay on the low value. Also at the moment the Mass DMV is not letting people do anything with "toy" cars only every day transport......unless you "know" someone who can get it done for you. Good luck.

[clenet]

I hope you don't have to pay "town tax".

We do in Mass. It is not bad.