sales tax in massachusetts

[TheStoot]

How much is the DeLorean valued at in massachusetts for sales tax purposes? I looked up the NADA value but it shows MSRP, low average and high values. just curious how much of a hit i'm gonna get when i gotta pay the 6.25% sales tax when i register next week

[Delorean Industries]

However much you actually paid for the car on the bill of sale/title is what you will be paying sales tax on.

[JETS 81 DMC]

However much you actually paid for the car on the bill of sale/title is what you will be paying sales tax on.

YUP !

https://www.salestaxhandbook.com/massachusetts/sales-tax-vehicles#:~:text=Massachusetts%20collects%20a%206. 25%25%20state%20sales%20tax%20rate,find%20these%20 fees%20further%20down%20on%20the%20page.

[TheStoot]

Massachusetts doesn't allow you to use a bill of sale for tax purposes, the rmv just laughs at you if you bring one in.

[WHO1DMC]

In Minnesota you don't have to pay the tax if you go collector.

When I registered mine the gal told me how much the tax was and my jaw hit the floor. She saw my reaction and said if you go collector you don't have to pay it. What a scam. I'm glad she told me of the loophole I never would have known.

Ya there is certainly some limitations but law enforcement controls that. I never been bothered by them.


Dave B.

[David T]

A lot depends on the State and what mood they are in at the DMV. Here in New Jersey they go by whatever you put on the Title. You don't have to have a Bill of Sale but they do like to see it if you have it. If you price it really low they will call you and ask you to defend the price so if you have pictures and/or repair bills they will accept it if you got it cheap. Since condition affects the price of an old car so much you can save a lot if you can show that you bought it at a low price. BTW in NJ at least, you can Title a car and not pay any sales tax. You pay the sales tax when you register it. If you buy a Delorean and you don't plan on driving it for a while, (needs repairs, middle of winter, etc) you can Title it right away and when you are ready to drive it you get the registration and plates. I would recommend getting insurance on it right away but if you aren't driving it right away, you don't need liability, that is the most expensive part of the insurance.

[TheStoot]

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

[CFI]

However much you actually paid for the car on the bill of sale/title is what you will be paying sales tax on.

It’s been a while since I’ve lived in Mass, but the Registry of Motor Vehicles determines the cars value and charges you tax accordingly. This was done to prevent people from falsely claiming they “only paid $1” and therefore prevent the state from collecting its share.

[Michael]

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

[Ron]

It’s been a while since I’ve lived in Mass, but the Registry of Motor Vehicles determines the cars value and charges you tax accordingly. This was done to prevent people from falsely claiming they “only paid $1” and therefore prevent the state from collecting its share.Same here.
They were getting 'their fair share' -- Now its Ad Valorem, every time it passes hands (usually).:rant:

[TheStoot]

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

Oh yea we do, they call it excise tax on your car, gotta pay every year. It's why they call it Taxachusetts

[dn010]

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

:hysterical:

[mr_maxime]

Same here.
They were getting 'their fair share' -- Now its Ad Valorem, every time it passes hands (usually).:rant:

Or you merely move to GA and if it's lease, you pay the full value of the car and still have to continue paying taxes included in the lease payment. Why am I paying taxes on the appreciated value of a car I already fully paid for including original taxes? I think the lady at the dmv felt bad and fudged the value cause I paid way lower than what the calculator told me it would be.

[Midnight Specialist]

I just registered mine and it was just shy of $2,500. Just be prepared. Mass took out delorean from the RMV database so they had to call people to get mine registered . Also, they might make you have a cop go and inspect it and bring in a form to ensure it’s safe to drive. They were throwing that at me, but since they couldn’t tell me what exactly he would be looking for and that I was going on military orders, they waived it. The phone calls were kinda fun to listen too. “Yeah a Delorean. You know, like Back To The Future.” Took forever so fair warning. https://uploads.tapatalk-cdn.com/20200806/928801cee9b6bc73847ade70a66047d7.jpg


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[TheStoot]

Why would they take a car that still exists out of the registry database? Massachusetts sucks on so many friggin levels its not even funny. $2500 for sales tax on a 39 year old car...fml
How long did it take to get registered?

[Midnight Specialist]

You got me, but they did. Maybe you’ll be ok since they had to put me in, but I can’t say. Just be prepared for some time there and the person helping you to be on the phone a few times. Took about an hour for it to be done.


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[TheStoot]

I'm gonna have my insurance company do the running for me so I don't have to get involved

[TheStoot]

did they base it off the nada guide book or bill of sale?

[Midnight Specialist]

did they base it off the nada guide book or bill of sale?

Bill of sale of $37,600


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[TheStoot]

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!

[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!:8ball:

[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.

[clenet]

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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The Mass DMV does not like cars from CT and put everyone through the ringer when they are trying to do anything with a non titled CT car. I will never buy a car from CT just for that reason. I could tell you some stories about friends who have had history with this problem.

[TheStoot]

Its not a toy car, its just an older car I need to have registered. I don't see the registry not doing their job by not registering a car i have all the paperwork for. Hence the name registry. My insurance company is taking care of it fir me

[Midnight Specialist]

You’ll be fine with the form the insurance company gives you and the title or bill of sale. You’ll just have to wait while the do some extra steps to get you in. Took me an hour, but it was done.


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