I paid cash for a car from New Orleans right before the hurricane. They told me that I was going to have to pay sales tax in Mississipi and Alabama so I didnt pay it. I never paid tag or sales tax for it. Now Im going to try and sell it. What do I need to do? Is there a way to get out of the taxes now? I already signed the bill of sale and title but never paid for it to be transfered to my name. The tax and tag are gonna cost me like 1500 bucks!!! AHHHH!
2007-02-07 16:49:17 · 5 answers · asked by hopes2graduate 1 in Cars & Transportation ➔ Buying & Selling
<>First off, you should only have to pay tax in the state where you are (were) going to register it. In order to legally sell the vehicle, you have to have a clear title, so you will have to pay for that. Maybe if you can get a BOS from the previous owner for less money, you can pay less tax.
2007-02-07 17:01:51 · answer #1 · answered by druid 7 · 0⤊ 0⤋
Why would you have to pay sales tax in 2 states? You should only have to pay sales tax to 1 state. But unfortunately, you will have to pay sales tax on the vehicle somewhere in order to sell it. Some states also charge property taxes on vehicles, so you may be responsible for back property taxes also. One usually pays any taxes when titling the vehicle. Depending on your state laws, you may only have to get a title in your name and not register it or get tags for it. That may save you a bit of money, but not a lot. But you are responsible for paying taxes on the purchase price of the vehicle. A notarized letter from the seller verifying the price you paid, depending on what he puts in the letter, may save you some money...I am not suggesting anything illegal here, but use your head. But if there is a property tax on your vehicle, it is the states/county/town etc, value they put on the vehicle that has to be paid for the years you owned the car. Even though you never paid taxes on it or titled it in your name. And you have to have the title in your name in order to sell the vehicle.
Good luck
2007-02-08 00:06:38 · answer #2 · answered by just me 6 · 0⤊ 0⤋
depends on the state you are in. i live in mississippi and was affected during the hurricane as well. if you know a mechanic you can get a letter written and notarized that the car was "broken" down and inoperable. therefore you didnt title it or get a tag as it was non"drivable" and just a car you fixed up. there is a process you go through for something like that. the state title agency might have a specific form you need for that. otherwise....yeah...your screwed. although in mississippi, if you dont get a tag for it, it puts a trap on the title and the new owner might be forced to pay taxes on it. but..you still got to get the title for him, and he'll come after you for the difference. not to mention if he sues..you'll lose, probably more than just taxes. your best option is the "broken" car option.
2007-02-07 17:05:00 · answer #3 · answered by ridgwayaz 2 · 0⤊ 0⤋
You're going to have to have a clear title to sell it and the only way to do that is get the car in your name and pay for the tags and the taxes and do it right.
2007-02-07 17:00:01 · answer #4 · answered by annazzz1966 6 · 0⤊ 0⤋
chuffed, chuffed, chuffed, chuffed birthday, omit Charlotte! are you able to record on your resume your accomplishment is that you've stolen the hearts of each body on the following, or ought to that be considered a legal! immediately is my sister-in-regulation's bday, too, so now i will not in any respect overlook yours! Huggles to you as in hardship-free words you may do! ma
2016-12-03 21:28:02 · answer #5 · answered by lemmer 4 · 0⤊ 0⤋