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[deleted] OP t1_ixz5bqc wrote

Reply to comment by Direct-Pressure-7452 in Do both buyer and seller pay tax for private party sales of vehicle? by [deleted]

RMV always charges me based on the “sale price” written in the bill of sale/title. Apparently this is up to the RMV agent when you’re titling the vehicle. The market value is used is for state excise tax calculations, though.

The past few used vehicles I’ve bought, the seller left the purchase price on the bill of sale blank so I could fill in whatever I wanted. I never asked them to do this, and always filled in the correct amount, but it seems common for people to fudge the numbers on private party car sales.

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Direct-Pressure-7452 t1_ixz5wkx wrote

CALCULATING MOTOR VEHICLE SALES TAX on casual sales between private parties The Registry of Motor Vehicles and the Department of Revenue follow Massachusetts law in determining the amount of sales tax to be paid on the purchase of a motor vehicle. It must be the higher of the NADA value of the vehicle as published in the Used Car Guide as “clean trade-in” value [NADAguides.com] OR the actual price paid for the vehicle. The condition of the car will not reduce the sales tax determined. If the sales tax charged was incorrectly calculated for the motor vehicle purchased. For example, if the NADA “clean trade-in” value used in the calculation was not specifically for the car you purchased. Or, if the actual price paid for the vehicle, as used in the calculation, was an incorrect amount. Those are good reasons to dispute the sales tax. Massachusetts law requires the Registry of Motor Vehicles to use the higher of the NADA value or the purchase price in determining the sales tax. The Department of Revenue cannot take the condition of the vehicle into account when considering an abatement request. If the NADA value is higher than the purchase price, the NADA value must be used, regardless of the vehicle’s condition and DOR will not allow a different value. When should I dispute the amount of motor

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[deleted] OP t1_ixz6g2p wrote

That’s great, but I’m just saying, I’ve bought several used vehicles in private party sales in Massachusetts and I’ve always paid sales tax on what was written on the bill of sale when I registered them. Maybe the RMV can decide to charge a different amount, but they haven’t for me. The last vehicle I purchased, a motorcycle, was in October of this year, so I’m working with up to date info.

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mmmsoap t1_ixze164 wrote

I can say the opposite happened to me. I bought a car from family for a very reduced price, but paid sales tax on the value, not the sales price.

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[deleted] OP t1_iy0jq6c wrote

Someone above wrote that the RMV agent has discretion to override the value written with the NADA value. Maybe because I tend to put the actual amount I paid on the bill of sale, they go with that. I bought a motorcycle at the end of the season for about half what it was worth and they only charged me tax on what I paid.

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