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State Tax on Vehicle Registration?

Venom asked:


Part I.
I was told that even if I got a car at a very good deal i.e. at a car auction I would have to pay state tax on the blue book value on the vehicle when I register it, not on what I actually paid. Is this true? (BTW- I am in the state of California). If you can direct me to a California Legal code that specifies this that would be great.

Part II.
If the vehicle was acquired for free. Do you still have to pay state tax on the vehicle when you register it?
PartIII.
Is it legal to pay state tax on something that you didn’t buy?
(This is in reference to Part II. Again- This is the State of California). If you can direct me to a California Legal code that specifies this that would be great.)

Tim Lincecum

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This entry was posted on Saturday, May 9th, 2009 at 6:31 am and is filed under California Vehicle Registration. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “State Tax on Vehicle Registration?”

  1. Full Tilt Bonus Code

    dont know about cali. call the DMV they can tell u. Illinois taxes based on the age of the vehicle, under a specific sales price, then the state sales tax applies on the newer or higher priced vehicles.

  2. Heads Up Poker

    That varies from state to state. Some will accept the purchase price — even free — if the transaction appears legit. TX does a flat fee on free or very low priced cars.

    If it looks like something funny is going on, they’ll usually assess the use tax on book value. For example if you buy a car from a non-relative for half the book value, that would be suspicious. If you bought it at auction they’d probably accept the price on the bill of sale as legit and tax it that way.

  3. Poker Tips From The Pros

    no not really as long as you have a sales receipt,,unless you get a bad dmv person,,just be nice to them and they will treat you good,,

  4. Heads Up Poker

    I’m pretty sure you would pay tax on what you paid for the car not the book value.

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