Sales Tax on Used Vehicle

Hey Guys,

I’m in the process of picking up a new to me used truck from a private party. I’m assuming I will still have to pay MN State sales tax on the vehicle when I go to register it, but my question is, do I pay sales tax based on the price I purchased the vehicle for, a value determined by the DMV for my particular year/make/model vehicle, or is it an honor system where I tell them what I paid for it and am obligated to pay the necessary tax accordingly?

Just trying to figure out the exact amount I will have to come up with at the DMV in order to complete my registration.

Thanks in advance!

They will collect tax on your declared sale price as long as it falls in a price range for that vehicle listed in their “blue book”. We put a high mileage Explorer up for sale. We had to drop our asking price to make a sale. They made the buyer pay sales tax on a price $800 above what she paid us. I told the person doing the title transfer we had advertised it for that amount but could not get a buyer. Did not matter.

Just tell them you paid 900 bucks for it. If they question you just say the truck needs alot of work. I have done this on somewhat new vehicles without a totaled title, fixed em up and sold em. They might give you a dirty look but it will save you a bunch of money. It’s always worked for me and I walk out paying less then a Hundo for tax and title

I always thought you paid an excise tax based on the price you paid, NOT the perceived value they think it is worth.
Jack

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I always thought you paid an excise tax based on the price you paid, NOT the perceived value they think it is worth.
Jack

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Whichever makes the most money for the gov… if you want to question it you can stand in that line over there for 3 hours to see a rep.

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Just tell them you paid 900 bucks for it. If they question you just say the truck needs alot of work. I have done this on somewhat new vehicles without a totaled title, fixed em up and sold em. They might give you a dirty look but it will save you a bunch of money. It’s always worked for me and I walk out paying less then a Hundo for tax and title

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X2 they give you a dirty look then write it up.

I’ve received the form sent out here in WI that verifies what a buyer paid for it. If you “strike a deal” make sure your both on the same page when it comes to the declared price. Same for a boat. Since you only register the boat hull,(here in WI) that’s the only thing I declare value on.

We bought an old Mustang fastback many years ago. We declared the exact price we paid for it when registering. The State would not issue us a Title as they said we didn’t pay what it is worth?? Needless to say I was like…..WTF!! We ended up having to send several pictures of the vehicle and plead our case as to why we paid what we did for it. I actually ended up having to pay an additional tax to meet the guidelines they had for that particular vehicle? Though I said this is complete BS I guess I still needed the title and forked over the extra cash. STILL burns my butt today.

So I would say this is probably a rarity, but certainly not impossible.

Sorry to Hi-jack your post Justin. I will be looking for a truck this fall, and may buy one in Mn, but live in Wi. Anobody know how the taxes would work then? Pay taxes in Wi, even though bought in Mn? Thanks in advance.

Nut

Two different receipts from seller if you know them. One high and one low. Guess which one you take to DMV?

You would pay the Wisconsin tax because that is where it will be registered.

Never had a problem when both parties were at DMV.

I sold said vehicle for $250.
I bought said vehicle for $250.

Eventhough it could’ve been worth $2500.

If it were me I don’t think I’d be chatting about this in a public forum. Some of the suggestions being given are not exactly legal. It would only take one DMV employee to see this and flag your name in their system. Just saying…. and NO I do not work for the DMV…thank god.