If you trade cars with someone, will you still have to pay sales tax? I'm assuming you will but I thought maybe someone would know for sure.

Yep, you get to pay sales tax... I know it sucks, but you can always write that you sold him the car for like $100, and vice versa.

Danny

thanks, i kinda figured that. bummer. I suppose that if they give you any grief you could always go with the lowest possible value off of Edmunds and then knock a couple grand off that.

Actually, they cant say crap! It's your car, and if you want to, you could sell it for a Happy meal! All you have to do is sign the bill of sale, with the ammount, say $100 and that's that. I've done it. A while back I bought a 91 GTI that needed lots of work for $600, but when I went to register it, they wanted me to pay tax on $5500, which was what the book value was. So I went back to the owner, had him sign a bill of sale, and that was it! I got to look at a DMV lady all pissed off that she couldn't screw me... hehe. See, the thing is that they really cant tell the condition that the car is in, and the book cant either, so there is your chance.

Danny

Originally posted by ratboy
If you trade cars with someone, will you still have to pay sales tax? I'm assuming you will but I thought maybe someone would know for sure.


I tried that here in MN, they said they tax the sale price OR a % of the blue book, whichever is higher. (I think ti was either a % of blue book, or bluewbook <low value>)

The three cars that I have bought from private parties all had, uh, conservative numbers on the bill of sale. In one case with a Renault Fuego that was given to me by my uncle while I was between cars in college, we put $1 on the bill of sale because there has to be some amount on there besides zero. I think the value of the car was somewhat less than $1, though.

haha

As far as the state of Illinois knows, I bought my '90 RX-7 for $1, they never gave me any crap for it. :)