The lady I bought my chevelle from wouldn't put a lower price on the release of liability form. She said she was too "brutally honest" for that. Loyalty to the state..Yeah!! My question is this. When I register my car at AAA and if I tell them I paid a lower amount will they catch me? 8.25% sales tax on a $20,000 car isn't cheap.

I think the question is - "Is it worth the trouble if they catch me?"

I dont think they would just roll on your word, though. I think what the release and registration show is what they will go by and if they contact the seller, well.....you already know her take on it.

taxes suck, they get you coming and going, when your stopped, making a uturn, dying, living, sick....bastards.

Some states have a reference value in their books on cars older than a certain year and value the tax according to that (mainly because so many people "fudge" their bill of sale)

Yeah whata dumb *!! They may end up calling her and if they do you could be in deep trouble and have to pay the full amount.

A couple of years ago i bought a car for $1,000.00 which at the time was valued at approx $8,500.00. The state sent me a letter saying that I had under reported the purchase price. I had to explain why I only paid $1,000.00 for the car and produce a signed receipt from the seller for the purchase, which in my case I was able to do. I know this is getting a little off track but I believe that the States are THIEVES in this regard. Didn't they collect sales tax when the vehicle was purchased new. They want to be able to tax you every time you turn around. I say screw them if you get the chance, because they sure are screwing us.

First of all, I dont think I would of started this thread about defrauding Uncle Sam. If you or her gets that special letter from the IRS, you will get caught. I wouldn't take that chance.
I live in Michigan, so if you buy a car from one of your relatives you dont have to pay tax on it. I know someone that said they bought a car off there brother so they didnt have to pay that sales tax,needless to say they got a month or so behind bars. Is this worth it?

In my experience, DMV or AAA will base the sales tax on what's shown as the selling price on the bill of sales and title release of liability show. I find that most sellers will record a value that's at least 50% less than the actual purchasing price. If DMV says "wow, that seems cheap", you just say, well it has a blown motor and shot transmission.

That sucks! Any chance it was written in pencil? ;)

I have been contacted several times by the Wisconsin DMV asking questions about how much I sold a vehicle for. I always write down and keep a record of how much I sold it for and how much the agreed price was for tax purposes, that way when the call comes I can quickly check it out, tell them, and they go away.

Big penalties in Wisconsin for lying about how much you paid for a vehicle.

Jeff

Well, thanks guys. Off to AAA now to take it dry. Should be fun. Guess I will be holding off on those 15x8 rallys!!.....well, probably not.

What gets me is if a car has been sold enough time the state recieves more in taxes then the car cost. I have no problem fudging on the price.

I even called the husband afterwards and asked him if he would reconsider. Told him they might nail him for income tax and that if he put $10,000 then it would fall under the radar. He said he would ask his wife. It pisses me off because it she put $10,000 they would never question it. I registered my last fully restored chevelle at $1000. No questions asked! "I'm too honest" she says. Well thanks for sticking it to me after I just gave you asking price. I wanted to shove that title in her mouth.

I sent you a pm.

In Oregon..... if you paid $20K for the car, then you have to pay to have the title transfer and, if you want special plates, buy them also. If you register as a 'classic' and have - or can get- original plates (not THE original... just original for the period), you can register the car for the final time. No two year registration fees ever again.

No tax.... no additional fees..... I love it here....

I think CT goes by BLue Book now. Too many cars selling for $1.00.

in MN, it only costs $35 to transfer a title no matter what. well, $39.95 once they add on a few fees. that's the same amount it costs every year to register an old car.
but if a car is newer- something like 7 years old and less- then i think they base the yearly registration on how much their precious little book thinks it's worth.
i always just say i paid $500 for whatever vehicle i'm transferring to my name, and have never had a problem.

Idaho is 6% of whatever is on the bill of sale or declared on the title being transfered. I always list the actual price, life is to short to mess with DMV fraud guys.