Hi,

I just got a letter from The state regarding the amount of tax I paid for the car was not enough. Following is straight from the letter.

1. You did not pay the NJ sales tax because an exemption was claimed.
or 2. you paid sales tax on a purchase price that was far below the value of the vehicle as pulished in the NADA Official Used Car guide.

long story short. I bought the car earlier this year. For less than KBB suggested. I had the seller signed a bill of sale. I was able to transfer the title and registered my car. DMV didn't question about the price and didn't take the bill of sale. By the time I transfer the title, DMV didnt care nor look at the Bill of sale.

So now I have this letter from the state, try to call them and can never get through to a real person. alway put me on hold.
I believe by sending the bill of sale along with the completed questionnaire on the bakc of letter to the state should take care of the problem. But I am not 100% sure.

did anyone ever experience anything like this? For a second I was like shocked when i saw the letter. Comments and suggestions are welcome. thanks

 

Where did you pay the tax at? I'm surprised wherever it was didn't get a copy of the bill of sale to show what you purchased it for. That 'could' be the reason they are doing their standard practice for basing sales tax off of what NADA values say.

You'll have to refer back to wherever you paid the sales tax too (either DMV or private notary office)

 

I got this when I bought my Porsche 944, it needed some work and so I bought it well below the "true" value. I sent them receipts of work done and some pictures, etc. and I wasn't bothered again.

Explain to them the situation and they'll back off, if the car needs work, say so...if its a gas guzzler, explain how prices have eroded, etc. I think this is more of an automated response to the price you bought it for/taxes paid. Send them a legitimate letter defending your position and you'll be fine.

 

Thanks for the quick input.

the paper works were done and the car ws registered at the DMV office.


To 2002s2k,

the car is just a civic. And it doesn't need much work. blown shocks and battery were changed and I did them myself. I just happen to be able to buy it for less because the seller wanted to get rid of it. I really dont have anything else to tell them except the bill of sale I have. Will that be enough?

 

i would send them a copy of the bill of sale and tell them to call the prior owner if they have a problem.

hijacked - I sold a S2000 to a guy for $11k and we said it was only $5k. i gave him a bill of sale for $5k and he had to send it in when they questioned him......

Paying sales tax on used vehicles is crap. the tax was already paid for when it was new so why keep on paying...

 

Crap? You wanna hear crap? Live in Penn and buy a car. Pay sales tax. Move to Colorado and you get to pay sales tax again.

 

[QUOTE=Nin009,Jul 17 2008, 10:16 AM] Crap?

 

Years ago, I bought a car in NJ from a family member for $1 and had to fill out the tax form and pay the 6 cents. No questions. You win some, you loose some.