Quote:
Originally Posted by LandYaghtLover
Yup. Its to deter people from underreporting to avoid paying taxes. You can get away with fudging the numbers somewhat. Not sure about IL, but up here the owner always hold the title, even when there is a lien. Also sales tax is paid at the time of title transfer at the DMV.
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We pay sales tax at time of title transfer, too (on private sales, anyway). And there are minimum taxes (based on the age of the vehicle) as well, which generally negates an under-reporting.
So at what percentage under market-value is it illegal? That's very strange, to me. How does your state value a car that needs work in some capacity?
EDIT: I see you mentioned that "there has to be an explanation" about under-valuation. I suppose that's how you deal with cars that need repair.