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Here's an example
Friday, I take paperwork down to change the title to my Spider. I have everything I need (or so I think). I go to the registration counter, everything in order - Bill of Sale, Lost title/change of ownership paperwork (notorized), yellow paper stating I bought car for $500.00 from PO. Get to the counter... everything is okay, except they can't find the valuation on the car. Valuation, you say? In Washington a Bill of Sale is only evidence of the value of the car - for example, I paid $1200 for my Buick, but had to pay tax on $3000 - because that's what their little book says it's worth. Problem - they little book doesn't even have Fiats in it. They call Dept. of Revenue (these are independant title companies), Dept. of Revenue says "it's worth 7750". what the hell?!!! I'm a bit lit, after all, I have to swear that the value of the car is the 7750 otherwise they won't change the title. That means that I have to pay more in taxes then I paid for the car..... I get an extension (must register in 2 weeks or fine) so that I can talk to DOR.
I call DOR and I'm a bit irritated - although relatively civil. I ask them how they come up with the valuation - the jerk on the other end of the phone figures it's screw with Aaron Friday and doesn't answer the question - I'm not happy, but eventually here's what I learn.
In WA they use NADA values to set the amount of taxes. They cannot use a bill of sale - if you wish to dispute their value you must take your car down to a licensed mechanic and/or bodyman and get a detailed list of the things that are wrong with the car and the resulting costs of repairs. For those of you reading quickly, I bet you're thinking "So what if those costs are more then the "value" of the car?" Then you pay no tax is the answer. Of course, to do all of this requires either hauling your car to the various "experts" or getting one of your "expert" friends to fill out a list on his company's letterhead....
Or, simply get a note from a parent saying the car was a gift from them.
So on Monday, there will one new mechanic/bodyshop LLC in the State of Washington ... need a clever name.
Friday, I take paperwork down to change the title to my Spider. I have everything I need (or so I think). I go to the registration counter, everything in order - Bill of Sale, Lost title/change of ownership paperwork (notorized), yellow paper stating I bought car for $500.00 from PO. Get to the counter... everything is okay, except they can't find the valuation on the car. Valuation, you say? In Washington a Bill of Sale is only evidence of the value of the car - for example, I paid $1200 for my Buick, but had to pay tax on $3000 - because that's what their little book says it's worth. Problem - they little book doesn't even have Fiats in it. They call Dept. of Revenue (these are independant title companies), Dept. of Revenue says "it's worth 7750". what the hell?!!! I'm a bit lit, after all, I have to swear that the value of the car is the 7750 otherwise they won't change the title. That means that I have to pay more in taxes then I paid for the car..... I get an extension (must register in 2 weeks or fine) so that I can talk to DOR.
I call DOR and I'm a bit irritated - although relatively civil. I ask them how they come up with the valuation - the jerk on the other end of the phone figures it's screw with Aaron Friday and doesn't answer the question - I'm not happy, but eventually here's what I learn.
In WA they use NADA values to set the amount of taxes. They cannot use a bill of sale - if you wish to dispute their value you must take your car down to a licensed mechanic and/or bodyman and get a detailed list of the things that are wrong with the car and the resulting costs of repairs. For those of you reading quickly, I bet you're thinking "So what if those costs are more then the "value" of the car?" Then you pay no tax is the answer. Of course, to do all of this requires either hauling your car to the various "experts" or getting one of your "expert" friends to fill out a list on his company's letterhead....
Or, simply get a note from a parent saying the car was a gift from them.
So on Monday, there will one new mechanic/bodyshop LLC in the State of Washington ... need a clever name.
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