Texas and the Standard Presumptive Value Tax on vehicles

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B-onefan

B-onefan

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Has anybody ever bought a car and gone to transfer the title and register it and been assigned a SPV on the car and been told you have to pay sales tax on that amount, no matter what you paid for the car? The state presumes that the car you are buying is in perfect condition, runs great and is drivable, so they assign a value, for tax purposes, based on a Kelly Blue Book value of retail sales. Yes, that's right, they want you to pay a sales tax, not based on what you paid, but on what their computer says it is worth!!!!
I went today to transfer the title on a 1981 Chevy Silverado that I paid $350.00 cash for. It was not running, the transmission leaked everywhere, A/C doesn't work, it has not been started or driven in 3 years, has at least 120K on it and all the interior is dry rotted. Even though I paid cash and both the seller and I stated and signed that I paid $350.00 for it,
they assigned a value of $2925.00!!!!!! And expected me to pay taxes on that amount!! I told the ladies that whoever programed the computers in Austin was smoking some serious Crack!! Even running and driving good, it would only be worth $1500 to maybe $1800.
Crazy tax people!!
 

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Yep! The totaled 2010 Challenger we rebuilt was valued and taxed at over $30,000 minus parts used for rebuild. The law in Iowa has been in place for many years but not enforced until this year. It cost us plenty!
 
There is no appeal alternative? Idaho is pretty lax, and I'm sure there's a lot of abuse. They go by (can be and is often hand written) bill of sale from the seller.

On the other hand, SOMEONE already paid sales tax on that thing when it was new, I don't understand how the states get off charging you more each time it's re-sold
 
In Connecticut we get to pay not only sales tax, but a yearly property tax too. The property tax is based on what "they" say your car is worth. On a $25K car that's about $800/year where I live. Be happy you don't live in this state.
 
Went thru this in Texas. Had a guy at a local dealership appraise the car (and it was a pos). The tax office charged me tax on that appraisal and not SPV. Kind of a pita but it can be done. On another vehicle SPV screwed me. Paid tax on 12k for a truck I bought for 4.5k. Still made a boatload flipping it but it did puss me off. Life for n today's world. You can fight it, but you usually ending paying one way or the other.
 
You can pay the tax of 6.25%, based on the SPV or you can take it to a certified and approved appraiser, pay them $100-300 dollars to get their value and then pay the tax on that amount, plus the fee.
 
I don't mind paying my sales tax share, just not a presumed value based on only a mileage and vin #. There are a whole lot more variables than that on older cars. Condition is everything.
 
Does this look like a $2925.00 truck to you? Especially, not running, driving condition unknown, 305 2bbl?
 
Here in California I've had the DMV take money right out of my bank account, and tax return.
 
Friends 66 Impala was valued at6 grand.He paid 500 .They taxed the crud out of him.I got lucky, I said bought the valiant for 1600 and paid ttl on that amount
 
I just went to the TXDMV web site and found this.
I will be calling first thing in the morning.
I told that lady that the vehicle was close to 35 years old and that didn't matter to her.
It will be interesting to see what they have to say tomorrow!


TxDMV » SPV Calculator




registration renewal e-reminder address change specialty plates temporary permits vehicle-transit vehicle transfer notification title check














Standard Presumptive Value

Texans who buy a used vehicle from anyone other than a licensed vehicle dealer are required to pay motor vehicle sales tax of 6.25 percent on the purchase price or standard presumptive value (SPV), whichever is the highest value.

SPV applies wherever you buy the vehicle, in Texas or out of state. A vehicle's SPV is its worth based on similar sales in the Texas region. The Texas Legislature passed the law in 2009 to raise additional revenue to fund Texas schools. Black Book, the national guide that provides the values, uses an average wholesale used vehicle value based on Texas sales data. You can preview the full SPV of a used vehicle by entering the vehicle identification number (VIN) and odometer reading (not needed for motorcycles) in the boxes below.
◾Values are updated weekly.
◾SPV should be used for estimation purposes only.
◾Actual sales tax due is calculated at the county tax office when the title transaction is submitted.
◾If a value for a late-model vehicle is not available, tax is based on the purchase price.
◾This SPV calculator does not contain mileage adjustments for vehicles older than 2005.

If you paid less than the standard presumptive value for your vehicle, you may pay sales taxes on an appraisal amount provided it is certified by a licensed insurance adjuster or a licensed motor vehicle dealer; and obtained within 20 working days of the date of purchase.



Used Motor Vehicle Appraisal Form



Standard Presumptive Value Calculator


Calculate the standard presumptive value of your vehicle.





Additional Information


Protesting the Standard Presumptive Value

State sales tax is regulated and enforced by the Texas Comptroller of Public Accounts, which can provide more information about tax rates and vehicle appraisals.

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 (see Affidavit of Motor Vehicle Gift Transfer)
◾Even-trade vehicles, when vehicles of equal value are swapped by the owners

For more information about SPV, you may contact the Comptroller of Public Accounts at (800) 252-1382 or you can visit the Comptroller's Web site.

To determine if a vehicle is subject to SPV, you may contact our TxDMV Call Center at (888) 368-4689 and (512) 465-3000.
 
It's sad that the "customer" must know and learn the ins and outs of the fee basis and structure, not the employees. The DMV has wasted YOUR time by not knowing or failing to apply the statute to your vehicle in a proper manner. Of course they may be doing this on purpose to get more cash out of unknowing citizens.

Been down this road MANY times with the DMV.

Print out what you have with all related codes as backup.
 
Montana LLC....after set up costing us $49 a year....permanent plate on anything over 10 years old. No sales tax....
 
Hate to say it B One, but sometimes it's best to embellish the truth here in Tejas.

AKA, Lie threw your frigging teeth on what you paid, you can do it on the older stuff.
 
inkjunkie said:
Montana LLC....after set up costing us $49 a year....permanent plate on anything over 10 years old. No sales tax....
Click to expand...

Yep, I was just going to say the same thing. So big corporations get to do stuff like this all the time, why not the little guy? I have a lawyer on my mail route that sets up these LLCs exclusively. They have 100s of clients from all over, RVs, boats, cars, and airplanes. People do it with 2 million dollar Bugattis, works just as well with a $200 Dodge. Other states have tried to call foul but so far it's tough to beat, Connecticut does the same thing but with banks and credit card companies. All of them supposedly have their headquarters there because of better laws. The way I look at it, competition is good even in the world of government.
 
I have used two ways to defeat the license branch when they are unfair.

1. Ask them how much the car lists for without the engine , wether it has one or not, never drive the vehicle in question to get the title transfered

2. Bring in a notarized receipt from the seller
 
You can fight them with a proper appraisal. 90 days to file an appeal then wait for a refund. I had to do this regarding my home in Anderson SC. That appraisal cost me 200.00 but it was worth it in the long run.
I heard something on the news yesterday about North Carolina proposing a ban on used tires. In my opinion, Once its mounted, it's used. If they would take notice of all the under inflated tires on the road... That is a much greater safety issue that covers all and not just the less fortunate.
That's right. Approximately 50% of those ignorant asses writing this proposal are very likely riding around on 1 if not 4 flat tires.
 
I got it the other way on my daily driver a 90 sundance. paid 700 told dmv I paid 500
SPV was 494 but I had to pay for 500 cus that's what I said I paid for it LOL.
The reason for the SPV is because of people like me that don't feel the govmt shold collect sales tax multable times on the same item so we don't tell them what we paid. so they just started assigning a standard value.
 
Hemioutlaw said:
Hate to say it B One, but sometimes it's best to embellish the truth here in Tejas.

AKA, Lie threw your frigging teeth on what you paid, you can do it on the older stuff.
Click to expand...

I understand. I don't mind paying my fare share. Tax on $350.00@ 6.25%.
 
GEO said:
I have used two ways to defeat the license branch when they are unfair.

1. Ask them how much the car lists for without the engine , wether it has one or not, never drive the vehicle in question to get the title transfered

2. Bring in a notarized receipt from the seller
Click to expand...

None of that applies in Texas. The seller signed off on what he sold the car to me for. They only accept the the Standard Presumptive Value or a appraisal sheet from a certified appraiser.
 
Nevada used to do the same thing using depreciation tables, and used that as the basis for sales taxes, then legislature changed the law ...no sales taxes between private parties...
 
I will find out soon what FLA does. I am in the process of buying a 2005 Durango from a friend. He is giving me a hell of a deal as his wife said he needs to thin the herd. That said it has a few problems as the sunroof leaked and had about 2" of standing water in it. This has caused a mold problem and electric issues. His wife clipped a mail box with right side so needs fender replaced and buffing the right side. Carol and I have ripped out the seats and carpet and scrubbed it but can't seem to get mold smell out. I will post the cost to transfer in sunshine state next week.
 
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