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  1. #1
    Marksman

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    Paying taxes on a scrap vehicle?

    I bought a 1972 Ford bucket truck that is in bad shape with hopes of fixing it up and using it around the place. It is titled in Mississippi but the seller moved to Louisiana and never re-titled in Louisiana. I took paperwork to a local title place and they are telling me I have to pay taxes on both transfers which I guess I understand, but that I also have to pay taxes on the value of the truck, which they say is $22,000. This is absurdly different than the real value of the truck which I paid 500$ for. I am wondering if there is a way to pay taxes on an agreed or appraised value or something like that, instead of "the closest thing they can find in the NADA book".

  2. #2
    Marksman

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    This state is flat out criminal with vehicle taxes. Iím sure if they could get away with it theyíd come in your house when you move here and inventory your household goods to tax you on those too.

    You could Montana llc but thatís gonna be about 850


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  3. #3
    Marksman

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    Do you have a bill of sale or maybe find a bill of sale *wink wink* with the proper sell value that was paid...I’m pretty sure they have to go off of that, if there isn’t one then they can adjust the value... or lots of times go to the mom and pop tt&l and they can help you out a lot more than the dmv

  4. #4
    Marksman

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    How long was the truck in Louisiana before it was sold? If it was 90 days or so, itís a Mississippi vehicle. If itís a lot more, the owner is obligated to pay sales tax.

    If the owner owes tax, he cannot convey it until the tax is paid. The only exception would if you agreed to pay the tax as a part of the consideration in the agreement.

    Thinking about agreements, you should have one. The transaction needs a sale agreement, in which the ownership and clear title (with no tax liability) is warranted by the owner. Again, unless you agreed to pay the tax as a part of the consideration in the agreement.

    If the value can be proven to legitimately be $500, the tax should be based on that. I doubt that you can accomplish this at a neighborhood motor vehicle agent. You will need to convince a State motor vehicle department manager that you are not scamming the State out of its tax revenue. That will probably require the investment of several hours of time at DPS Motor Vehicle Office.

    If you plan on driving it, you must obtain a license plate and a registration (and insurance and a valid drivers license.)

    Itís possible to scrap the vehicle and thereby change the tax status of the truck. However, if you plan on using it, you would have to undertake the paperwork to create a new title and registration once it is street legal.

    If the vehicle has not ever been registered in Louisiana, and if the owner still has a valid Mississippi driverís license, license plate and registration, you might be able to execute a Mississippi sale agreement. If you donít domicile it in MS and are taking it to LA, then you would owe LA tax, not Mississippi.

    Once upon a time people used to buy vehicles in another state to skirt the tax. However we now have computer systems to track down tax avoiders.

    Depending on how bad you want this, the most practical thing might be to just pay an attorney a couple hundred bucks to fix the problem.


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  5. #5
    Marksman

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    I had a notarized bill of sale on a fixer upper classic car that they accepted in lieu of a fair market tax value. It was several years ago, though.

  6. #6
    Marksman

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    You can have any bill of sell notarized after the fact as long as it has buyers signature, sellers signature, and I think one witness, maybe 2, if you the buyer bring the paper along with the witness that signed to verify the transaction at a earlier date they will notarize it...at least I have done this several times in the past, not sure if this is still allowable, if so it would give you a notarized bill of sell for $500 and should be Valid for taxís purposes

  7. #7
    Marksman

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    Quote Originally Posted by SouthernUnderGod View Post
    How long was the truck in Louisiana before it was sold? If it was 90 days or so, it’s a Mississippi vehicle. If it’s a lot more, the owner is obligated to pay sales tax.

    If the owner owes tax, he cannot convey it until the tax is paid. The only exception would if you agreed to pay the tax as a part of the consideration in the agreement.

    Thinking about agreements, you should have one. The transaction needs a sale agreement, in which the ownership and clear title (with no tax liability) is warranted by the owner. Again, unless you agreed to pay the tax as a part of the consideration in the agreement.

    If the value can be proven to legitimately be $500, the tax should be based on that. I doubt that you can accomplish this at a neighborhood motor vehicle agent. You will need to convince a State motor vehicle department manager that you are not scamming the State out of its tax revenue. That will probably require the investment of several hours of time at DPS Motor Vehicle Office.

    If you plan on driving it, you must obtain a license plate and a registration (and insurance and a valid drivers license.)

    It’s possible to scrap the vehicle and thereby change the tax status of the truck. However, if you plan on using it, you would have to undertake the paperwork to create a new title and registration once it is street legal.

    If the vehicle has not ever been registered in Louisiana, and if the owner still has a valid Mississippi driver’s license, license plate and registration, you might be able to execute a Mississippi sale agreement. If you don’t domicile it in MS and are taking it to LA, then you would owe LA tax, not Mississippi.

    Once upon a time people used to buy vehicles in another state to skirt the tax. However we now have computer systems to track down tax avoiders.

    Depending on how bad you want this, the most practical thing might be to just pay an attorney a couple hundred bucks to fix the problem.


    Sent from my iPhone using Tapatalk
    I have a notarized bill of sale stating I paid 500$. So my understanding is I pay taxes on that. The seller owes taxes from when he moved from Mississippi to Louisiana and he owes that, but I can't get it titled unless I pay those taxes or him. (but I'm sure thats no gunna happen). I would not have a problem paying a couple hundred bucks to have it all "fixed". I don't plan on driving it around much, maybe a few miles to work to use it there. I don't want to be in a predicament where I have a problem in the few miles its driven and I don't have it licensed and insured. Other than that I wouldn't worry about it since I'll just be using it around the house.

  8. #8
    Donít troll me bro!

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    Look into salvage titles in Louisiana
    Doesnít play well with TROLLS...

  9. #9
    Marksman

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    Quote Originally Posted by Magdump View Post
    Look into salvage titles in Louisiana
    I am not understanding how this will help me?

  10. #10
    Training Ferrous Metal

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    I have never needed a bill of sale, especially a notarized bill of sale. I just walk into the title place, they ask how much I paid and that's it. I would go to another title place.

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