SL500 for $20, anyone? - Page 2 - PeachParts Mercedes-Benz Forum

SwampYankee · #16 08-04-2011, 01:39 PM

CT charges tax on the book value at the time of the sale regardless of selling price. Based on the KBB value mentioned it'd be $1126.17.

$1146.17 for a '99 SL500 still isn't too shabby!

Does PA charge property tax? That could be a decent chunk of change every year (would be over $700 here). Insurance could be a sizeable chunk of change, too.

SwampYankee · #17 08-04-2011, 01:52 PM

Quote:

Originally Posted by Eskimo

When I lived in Connecticut, the local township charged a substantial personal property tax - every year - on vehicles.

It was a disincentive to owning a nice car. One mechanical designer with whom I worked routinely drove a beater. When his family went on a driving trip, he'd rent a Lincoln Town Car.

When I fist bought by TD (for $100) 4 or 5 years ago, I paid sales tax on the $2500 fair market value. When it came time to pay property taxes, the town had the assessed value at $6000! $250 less than my '00 Wrangler. It's not worth $1500 never mind $6000. You have to go through a hearing process and bring the vehicle in question along to be evaluated in order to get the assessed value changed. I haven't had time until now (they only offer 3 dates and I could never make any of them), so sometime in September I'll see if I can get a more reasonable value place on it. One look should be enough.

cscmc1 · #18 08-04-2011, 01:52 PM

Quote:

Originally Posted by LandYaghtLover

Ouch, that sucks.

Actually, it's not all that bad! Check out the rate structure:

http://www.revenue.state.il.us/taxforms/Sales/VehicleUseTax/RUT-5.pdf

iwrock · #19 08-04-2011, 03:54 PM

Ahh, a feel good story to help out PR...

cscmc1 · #20 08-04-2011, 03:58 PM

Quote:

Originally Posted by iwrock

Ahh, a feel good story to help out PR...

Cynic!

I still find it a nice story, reported or otherwise. The guy was leaving the organization anyway.

boneheaddoctor · #21 08-04-2011, 03:58 PM

Virginia goes by the Blue Book value....doesn't matter WHAT you paid for it....even if it was free.

Unless you can provide substantial evidence the vehicle is worth LESS than Bluebook.

And if memory serves me right.....there is an minimum. Forget it its $500 or $1,000. For tax and grab reasons...no car is worth less for registration.

dynalow · #22 08-04-2011, 04:38 PM

Quote:

Originally Posted by cscmc1

Wow -- your state regulates sale prices? That's odd. Here in IL, I could buy that car for $20, but I'm going to pay the state's flat tax rate for that year car if I report the sale price as $20.

In any case, I liked the story and thought it a generous gesture by that coach.

We have a similar state witchunt here in NJ. Show up at DMV and report a below market price for year make and model and standby to get a letter from the DMV saying the BB value is such and such and you owe us such & such in sales tax OR provide a notarized letter from the seller that the selling price is correct as reported.

I think this guy could beat paying sales tax on market value since essentially he was given a gift of fmv less 20.00...and the owner/seller is publicly known to have "given" the car away.
The coach/owner has made a gift greater than 13,000, so technically he should file a gift tax return to report the difference. Riiight!

Edit: The sales tax he owes will ultimately depend on PA tax law, of which I confess ignorance.

kknudson · #23 08-04-2011, 05:35 PM

It's it a shame that the governments screw up some one just trying to be nice.

Had a friend many years ago, won the Lotto BIG had to take the annuity, just south of a million a year between him and his wife.

Well he had a small company made a good living off of it, didn't want to retire so he wanted to just payout profits to charity. He'd take no salary etc.
Well the IRS got involved and he found out he'd have to pay taxes on the income today, even though it went to charity, and get them back (mostly) at filing time.

Tony was a great guy, actually one of the few people I am not PO'd that he won and I didn't. But he ended up shutting down his company cause it wasn't worth it. Figure he'd would have been donating 250k+ a year.

PS he was such a nice guy, the convienent store he bought the ticket was corp owned, so they didn't directly get a cut.
He walked into the store a month after winning with a stack of 10k bundles, handed them to the employees, I was there the people freaked.

The Clk Man · #24 08-04-2011, 06:31 PM

Quote:

Originally Posted by kknudson

It's it a shame that the governments screw up some one just trying to be nice.

Had a friend many years ago, won the Lotto BIG had to take the annuity, just south of a million a year between him and his wife.

Well he had a small company made a good living off of it, didn't want to retire so he wanted to just payout profits to charity. He'd take no salary etc.
Well the IRS got involved and he found out he'd have to pay taxes on the income today, even though it went to charity, and get them back (mostly) at filing time.

Tony was a great guy, actually one of the few people I am not PO'd that he won and I didn't. But he ended up shutting down his company cause it wasn't worth it. Figure he'd would have been donating 250k+ a year.

PS he was such a nice guy, the convenient store he bought the ticket was corp owned, so they didn't directly get a cut.
He walked into the store a month after winning with a stack of 10k bundles, handed them to the employees, I was there the people freaked.

Now that's my kind of guy. Good for him.