This came from a member of the Dallas Rolls-Royce owners club this morning: From: Al Kroemer <[email protected]> Date: May 27, 2010 3:56:23 PM CDT Subject: Revenue enhancing program I recently discovered the State of Texas newest revenue enhancing measure. They are getting copies of the list of cars you have insured and comparing it with vehicle registrations to see if you have a car insured which is not registered. They are using the VINs for comparison purposes. If there is a discrepancy they contact you to get an explanation. The reason is that they want to be sure to collect sales tax when you register your car. I guess they figured out a lot of people buy antique cars and insure them but dont register them. Al _____________ I thought it might be worth knowing about for those of us who are collectors. James
I believe they also charge you taxes on what THEY think the car is worth. Not what you paid for it. If you buy a car that is not running and needs alot of work, you still pay taxes as if that car were worth a running nice version of the same car. Is it illegal to be overtaxed?? Aaron
Exactly what does anyone expect a state to do when its citizens clamour for lower taxes and more services? The state will wuikly find itself in a position where they see collecting taxes for 'shades of grey' violations as a service to the citizens of the state. Down in Austin, a person is having to pay building permit fees on a swimming pool that has been in operation for 22 years!
I have a chassis in my garage that I bought for a future project several years ago. I asked about registering it, and was told that it would be as if it were running and being driven currently. Even after explaining that it physically cannot run, and hasn't in years, the answer was the same - plus some penalties for not registering the non-running car when I bought it. I offered to pay what a non-running car was worth, just to get it registered for the future, and was told that there were no exceptions. I told her that they wouldn't be getting a dime of it at all, then, ever. Bummer for them. I guess it'll be a track toy, or part it out. See how they won there?
How old is the thing? If it's salvage or older than 25 years, then the standard presumptive value doesn't count Vehicles Not Subject to Taxation based on Standard Presumptive Value * New vehicles (not previously titled) * Vehicles purchased from licensed dealers (dealers use purchase price only) * Vehicles purchased at a governmental or foreclosure auction * Vehicles 25 years old or older * Off-road vehicles, such as dirt bikes or all-terrain vehicles (ATVs) * Salvage or abandoned vehicles (except rebuilt salvage vehicles) * Vehicles sold through a mechanic or storage lien * Vehicles given as gifts to eligible applicants * Even-trade vehicles, when vehicles of equal value are swapped by the owners Also, you can get a title without street registration Image Unavailable, Please Login
I have mentioned this several times in othere threads, it's part of the Insurance Liabilty compliance effort which benefits us all.... It's really no big deal.... I insure all my cars, operational or not. The barn might burn down. So yes they see it against an untitled VIN... They send you a letter to respond. Acceptable responses are: Titled in another state. Not operational on public roads Dismantled for parts I'll tell you when the tune up is finished. Yes it is about sales tax of course, but it's not any nefarious thing. ONLY if you do not have a Bill of Sale, are they forced to use NADA values to assess tha amount of sales tax......so be legit and you have no worries. BUT the days of "my uncle gave me this old beat up (1964 250 Lusso) car for $500"....are pretty much gone. Death and taxes baby! But I told them my two Ferraris in queston were "up on blocks, in a pasture" and the guy on the phone was totally cool with that answer!
Then, they did a retina scan, took two sets of my fingerprints, a DNA swab from the inside of my cheek, a sperm sample and took the handcuffs off, and let me go!!
It's just a '94 3rd Gen RX7, with the standard grenaded rotary Unwrecked, very good condition, otherwise. When I get the time, it'll get stripped and stitch-welded, and built-up with an aluminum V8.....IF the state and I can come to a better solution. It's in their interest more than mine, because I'm not a few million $$$ in the hole with my budget, and I don't have to do squat here. It's really the principle.
I'd guess that if you can document the status/condition of the car and provide a legit bill of sale, that would substantiate paying sales tax only on your actual bill of sale cost. This would be especially relevant if you bought a non-running car.
Look at it from their point of view: Lets say you buy a car for $100K and then take it all apart. Then after 5 years of slow work, you get it all back together and it is now worth (the same) $100K. In the mind of the state, it WAS worth $100K for the entire period of time.
The program is called the TEXASSURE PROGRAM. It is a cooperative enterprise between the State of Texas (general revenue dept) the Texas Dept of motor vehicles and the Texas Dept of Ins. They are on the hunt for cars that are insured but not registered in this state. They are also serious about the collection of these monies that they think is owed them. So if you check box 5-OTHER-you better have a good reason.
I'm serious, I handled it with a phone call, and they said I could throw the notices away...... They didn't even ASK about the Ducati in the corner!!!
