Registration Fees Doubt!?

Question

~In California~
Im about to purchase a car from my cousin for 7,000.00$ but i have heard that if i put that it was sold for less like maybe 3,000.00$ or put as a gift the dmv fees are less... is that true?

Answer 1

That depends if California uses the sales price or the blue book value to determine the taxable value on it.

Answer 2

That depends. Many states levy the use tax on the blue book value if the BOS price is lower than the blue book. Do keep in mind that there are stiff penalties for tax evasion and stating a lower price than the actual sales price IS tax evasion.