Txwelder

Bought a Suburban from what I thought was a private seller. Paid no sales tax of course because it isnt required. Transfered the title into my name and go about my business. Come to find out the title was registered to his company of which he is the president. The state of Ga sends me a nastynote stating that I owe 7% sales tax on the sale price because it is considered a "retail" sale in the state of Ga. I have to provide a bill of sale signed by both parties so the tax can be computed. This guy never let me know that the truck was registered to his company and I never thought to ask or look at the title with much interest considering I bought it in his front yard. I can get him to write me a bill of sale with a lesser amount on it to lower the amount I owe or try to find a loop hole since he isnt a dealer. How can the state charge me sales tax if I didnt buy the truck from a dealer. This guy is not in the business of selling used cars or anything of the like. Im at a loss for words. Any help?

RustyJC

You'll pay it in Texas when you go to the registrar to transfer the title - regardless of where you bought it!

Rusty

derek840378

i had the guy who i bought my dodge from lie on the transfer papers saying i bought it for less. he agreed "what do i care?"

kandgo

Make sure it is the state Tax Commission that sent you the letter and not the Dept.of Motor Vehicles. Sometimes the DMV gets there wires crossed on tax issues. I don't know for sure, but is there some rules for the stationed military that it could be registered in your home state of choice,and if so would that change things???Goodluck,,Rick

Txwelder

Yes it was the Revenue Dept that sent the letter not the DMV. I could understand if bought the truck here and then tried to register in Texas, I would have to pay sales tax. In Georgia, if you buy from private party, which I did, you dont have to pay sales tax. The fact that the truck was not registered in his name, rather in his companys name, constitutes me paying sales tax according to the state of Ga. I do not agree, not that anyone will care, that I should have to pay sales tax unless I buy from someone with a car dealer ID number. I guess Im asking if anyone has a legal solution to this as I would think the state would throw a flag if I have a bill of sale for a 2001 Suburban for $1500.

RustyJC

Yeah, that's common, but it doesn't change the fact that sales tax is computed at the time one applies for transfer of title.

Rusty

Txwelder

I just dont understand how I can be charged sales tax this way. It blows my mind that this guy never disclosed the information, he had to know what he was doing. He said he was willing to write me a "modified" bill of sale but I dont want to get in trouble over $1200 worth of taxes. But if I can get around it legaly then I would like to. It just doesnt seem right that I get charged because this guy had it registered to his business, which is not a car dealership, because the state sees it as a retail sale. I think this is a little rediculous and someone should revise this law.

bamalam

Best be careful! Since the state of Georgia already sent you a nasty note, odds are they already have had someone fill out a form somewhere that stated the selling price of the vehicle. Normally when you go to change the title, someplace on the forms the sales price of the vehicle is asked for. If you show up with a bill of sale lower than a price already recorded, they’ll nail you for fraud and falsifying documents.

You could try saying that since the previous owner was a business (yeah I know, but technically and legally, it was), he was responsible for collecting the tax, and to your best understanding, the final price included the sales tax. The state will attempt to get it from him, which of course he’ll refute, all holding up the transfer of title.

I see your point, but no doubt, Georgia will maintain that as the buyer, you were required to have practiced due diligence. As such, it would be assumed by the state that prior to the purchase, you were aware that the vehicle was registered to a company; said compnay had a license to do business in Georgia (either an actual license or a resale certificate, which a business that purchased a vehicle as an asset would have); and that as such, did knowingly engage in a valid "retail" sale when money was exchanged and the title was signed over. NOTE: I did not say that all of this was true, just that this would more than likely be the position the state of Georgia would take (law has less to do with actual fact than you think!).

Bottom line, if you want the vehicle registered, you're going to have to pay the sales tax.

Txwelder

The thing is, I already registered the vehicle in my name. My bank already has the lien on the title. Im not having issues getting registration. I assume that the state will at some point place another lien on that title if I dont own up to the sales tax owed. If they know what the sale price was why wouldnt they just bill me the amount? They sent me a letter asking me to send them the bill of sale and to compute all the math myself on their easy little form. I have an appointment with my legal department tomorrow to hopefully clarify some of this and get me on the right track. How well would the argument that I thought taxes were included hold up?

PsRumors

If the truck was in fact a "business owned" truck there is sales tax due. He has been depreciating that truck out over the time he has owned it. I would let him know he deceived you in to thinking it was an individual to individual sale. And yes it is deception, he knew to depreciate the truck out through his company and he knew to sit it in his front yard to sale.

Get him to split the bill with you or tell him you are telling the state to go to him for the tax. You paid it when he sold it. He is required by GA law to collect tax when the vehicle is sold.

chaikwa

This seems simple to me. Who did you buy it from and who did you make the check out to? The PERSON, or his BUSINESS? A business may have owned the truck, but if you paid a person, and the check was made out to an individual, then I'd think it'd have to have been a private sale.

chaikwa.

Txwelder

All makes sense and will be brought up to the lawyer tomorrow. Thanks for the input. The check was made out to him and not his business and I will insist that taxes were included in the final price on the bill of sale. Thanks again.