Guys I bought a Z today, the guy left the sale price section on the title blank for me so I can put any amount just so I dont end up paying a hefty sales tax. Now when I sold my motorcycle I remember the guy asking me to put less amount too, just so he dont pay a huge amount of sales tax.
so for instance if I put 12k instead of 16k, I'll be paying less sales tax. But if suppose my car gets stolen or totaled, does the insurance company give me the market value or the price I put on my title?

 

The insurance goes off the nada book for pay out so if your car is totaled the insurance will pay you based off of the nada value at that time
I know cause I just totaled my z and payed 8k for it and the insurance payed me 16.5k

 

thats awesome

 

If you bought it from a private seller then you shouldn't be paying sales tax. If you buy it from any sort of dealership, the code below is what should be followed.
As far as your insurance company replacing your car, its typically a rule of thumb to say they go by how much it would cost them to buy your exact car from a used car dealership.
So most of the time, you can't assume you will get the price you put on the title, especially if you wrecked years after you bought the car.
However there are special occasions, for example.. my sister totalled her car a couple years ago and she got the exact amount she paid for it back from the insurance company.

Google is your friend, it works wonders.

"Unless exempted under Va. Code § 58.1-2403, Virginia levys a 3% Motor Vehicle Sales and Use Tax based on the vehicle's gross sales price or $35, whichever is greater. This tax is collected at the time of titling whenever a vehicle is sold and/or ownership of the motor vehicle changes. If you are exempt from the motor vehicle sales and use tax, as provided by statute § 58.1-2403, bring proof of your exemption status or complete the Purchaser's Statement of Tax Exemption (SUT3) indicating the reason for exemption."

 

So I guess I don't have to worry about putting the correct amount on the title. It can save me 200 dollars, which I can use towards my oil change and other maintenance.

Meaning I'm not exempt from the sales tax, I know when I bought my motorcyle from a private seller I had to pay sales tax when getting the registration from DMV. So there is a possibility that I'll get the exact amount I have on the title, even though my car is much more worth than that? Why was your sister treated in a diff way?

 

Congratulations on the Z.

Cheating on sales tax will not work. The DMV will ask to show a bill of sale or use a book price.

 

Sales tax fraud is no bueno

 

+1

I researched it after a I bought my motorcycle... It's total bull that the same vehicle can have sales taxes paid on it multiple times.

 

First post but my RAGE for our tax laws made me jump in. Just bought my 05' Enthusiast yesterday for $14k and paid over $1400 in taxes. And the government gets a big chunk of change everytime this vehicle changes hands. What a load of ****!

Oh and i love my car more than anything!

 

Tax Collector will have a book to determine the value of the car.

Insurance companies do not care what you paid for the car, they use their own formula to determine the cars value if it is a total loss ( works in insurance)

 

In Arizona, we don't pay sales tax on cars. We instead have a Vehicle License Tax. This gets paid when you register the car, and uses some silly equation to come up with the amount. It's dumb, and HUGELY inflated.