Sales/Use Tax?

[Churry]

Hey all,

I'm trying to find out how to calculate the registration fees of a bike that is not registered.

When I go to the DMV after buying any used bike, is there anyway I can get around having to pay a sales/use tax? I'm on the California DMV website's registration calculator (https://www.dmv.ca.gov/wasapp/FeeCalculatorWeb/newResidentFees.do)
and there is a spot for use/sales tax. If I leave it blank, my fees shoot up.

Thanks!

 

[Kdubb223]

hey churry not sure about how much the registration will cost but the use/sales tax is based on how much you tell/show the dmw you paid for the bike. I purchased my 09 used for 5500 and the bill of sale had 5500 so i paid ca tax on that which came out to 481.00 plus 15.00 for transfer of title fee. If you can have the bill of sale say you bought the bike for less money then the dmv will only tax that amount. hope this helps.

 

[MiltonDorkenhoff]

Hey all,

I'm trying to find out how to calculate the registration fees of a bike that is not registered.

When I go to the DMV after buying any used bike, is there anyway I can get around having to pay a sales/use tax? I'm on the California DMV website's registration calculator (https://www.dmv.ca.gov/wasapp/FeeCalculatorWeb/newResidentFees.do)
and there is a spot for use/sales tax. If I leave it blank, my fees shoot up.

Thanks!

CA can really use the money.

 

[Uno979]

Depends on state and county tax of the area you are at. If it has never been registered you have to pay the total % of both in current LOAN/Trade-IN value.

Ex: Mine was registered in MS, now LA. The state tax was waived(not all states will or only request half) and I had to pay just the parish/county tax which was 5%. Cost me $255. Included my tag for 4 years

 

[Churry]

Ok, so say I bought a bike for 4k and only marked it down as 3k to lower the tax. When I register for insurance, will it only cover the 3k?

 

[CrazyCawi]

no ou decide how much to insure the bike for

 

[Uno979]

Ok, so say I bought a bike for 4k and only marked it down as 3k to lower the tax. When I register for insurance, will it only cover the 3k?

That's politics for you

 

[FitZ6R]

Ok, so say I bought a bike for 4k and only marked it down as 3k to lower the tax. When I register for insurance, will it only cover the 3k?

You're talking about "lowering the tax" like taxes were optional. Let's cut the BS and call this what it is, CHEATING and breaking the law. Since you're cheating on your taxes, why not just file fraudulent insurance claims, too?

Sorry if that's harsh, but the law's the law. Nobody likes paying taxes or insurance, but I think most of us really don't like picking up the tab for deadbeats.

Now, could we discuss bikes or riding or somehting instead of petty fraud?

 

[ajskillz13]

Quick explanation...

If you buy from a dealer (or anyone else) and they tack on sales tax to the agreed upon sales price, that person has to remit the sales tax collected to the state.

If you buy from a private party and pay $5,000 for the bike, more than likely, sales tax will not be paid by the seller. YOU are responsible for reporting the $5,000 purchase price at registration and YOU will be responsible for $350 (7% in Indiana) of sales tax.

You can get away with not reporting your online purchases to the state and paying sales tax, but it's blatant tax evasion if you are manipulating the price of the sale in order to pay less tax. It's one thing to just not report small online purchases, but it's another to lie to the BMV.

 

[ajskillz13]

Hey all,

I'm trying to find out how to calculate the registration fees of a bike that is not registered.

When I go to the DMV after buying any used bike, is there anyway I can get around having to pay a sales/use tax? I'm on the California DMV website's registration calculator (https://www.dmv.ca.gov/wasapp/FeeCalculatorWeb/newResidentFees.do)
and there is a spot for use/sales tax. If I leave it blank, my fees shoot up.

Thanks!

Check your bill of sale. If it is from a dealer and they show the sales tax paid by you, put that in the calculator. If it was private party and you paid a flat amount and didn't discuss sales tax, put $0 and pay it with a smile.

 

[MiltonDorkenhoff]

Quick explanation...

If you buy from a dealer (or anyone else) and they tack on sales tax to the agreed upon sales price, that person has to remit the sales tax collected to the state.

If you buy from a private party and pay $5,000 for the bike, more than likely, sales tax will not be paid by the seller. YOU are responsible for reporting the $5,000 purchase price at registration and YOU will be responsible for $350 (7% in Indiana) of sales tax.

You can get away with not reporting your online purchases to the state and paying sales tax, but it's blatant tax evasion if you are manipulating the price of the sale in order to pay less tax. It's one thing to just not report small online purchases, but it's another to lie to the BMV.

I think OP was in CA. Independent of screwing the state out of the taxes, there are some strange rules here.

If you are bringing a bike in from out of state that doesn't meet CA smog regulations (there is a CA version of the FZ6R), then you can't register it here until it is "not new", which means 2 years old, or over 7500 miles (or maybe some combination).

I looked on Google and found a couple of links discussing it. Here, here, and most importantly, CA DMV.

 

[Churry]

When I asked the seller about the registration and sales tax, he said he could write in a lower amount reported on the pink slip to try and lower those fees. He didn't seem to realize that it would cost that much to register the bike in CA. The bike does have over 7500 miles on it, so a bike he was trying to sell for 3500 would of had about 700 dollars worth of extra fees.

In the end, I just ended up passing on the bike as I didn't want to pay that much extra.