CA DMV taxes question- - Speedzilla Motorcycle Message Forums
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post #1 of 2 (permalink) Old 07-31-2009, 07:04 PM Thread Starter
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CA DMV taxes question-

Ok, I get that businesses charge us when we buy a new bike. Whatever.

However, why the State is entitled to yet another helping of cash when an individual sells a bike to an individual, is beyond comprehension.

So, anybody know a way to avoid the tax when i buy a used bike from a guy?

Can it be declared a gift?
If I say I paid $500 for a bike worth more, can they challenge that and extort more money from me?

Since California Democraps have spent us into the toilet, giving us the worst state credit rating in the country, I suppose they will be looking under every couch for quarters, including mine.

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post #2 of 2 (permalink) Old 08-15-2009, 12:29 AM
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I wouldn't be so quick to blame the Democrats, there was a time during G. Davis's reign the DMV registration fees were reduced to almost nothing and at one point the state was going to do away with the registration taxation altogether, then in comes Arnold to fix what Davis did and now look at us. On the other hand, sales tax on used vehicles has been around forever, thats nothing new. There is no difference between a dealership charging tax and a private individual. Actually you have a better shot at reducing your tax responsibility if the seller of the bike will work with you in adjusting the sales price on paper. The dealer has no choice but to report the actual price. I don't think the gift thing will work, there is still going to be an assessed tax on the bike regardless. I believe the only time the tax is waived is when the vehicle is given to a family member.

I've bought and sold 6 or 7 bikes in the last 4 years, just suck it up and pay the tax, again, its no different than buying a taxable item from a store. Just because its from a private owner doesn't mean its a freebie. The State has to get their share of the transaction to keep the gears going, so to speak. Right now the registration fees is more of a worry than sales tax.

From past experience, as long as you keep the recorded sales price somewhat within the realm of reality, DMV doesn't hassle you. Seems to me they are fairly liberal in this regard and have never used the blue book to check my recorded sales prices.

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