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HoodPin 11-23-2009 11:09 AM

Quote:

Originally Posted by Eric S (Post 291957)
Might be naiive, but I was assuming that if I planned ot sell it I would title it one day and sell it the next. Of course, that might set off red flags at DMV...

A friend lives in Loudoun county and has a boat that he stores on the bay in MD so he gets out of the tax that way. Unfortunately, I think Fairfax County may be worse than other counties in that you have to pay the Fairfax county tax regardless of where it is stored.

AFAIK, the DMV doesn't care if you title the car one day, and then sell the car the next (at least in MD). But getting it titled will require the payment of purchase tax; I know this is the case in MD, and probably in DC. Not sure about VA. In MD its a 5% tax to title a car, even if not registered for the street (separate registration fees).

smdubovsky 11-23-2009 11:15 AM

Quote:

Originally Posted by Eric S (Post 291957)
Might be naiive, but I was assuming that if I planned ot sell it I would title it one day and sell it the next.

Yes, and you then have to pay the sales tax on it. I tried to buy a cayman that the PO had done exactly that. He was a bit pissed he had to pay IL state tax on the value he paid 2 yrs ago (vs the much cheaper current sale value.) Worked out for the better. Found the tt while I was waiting...

The best answer is to title it in a state that doesn't have sales tax. You then have a title that can be signed over to another on sale, no sales tax, no use tax. Win, win, win.

good hands 11-23-2009 11:22 AM

Quote:

Originally Posted by Eric S (Post 291962)
The Cup Car situation appears to create a loophole - since you don't title it, they never know you have it, therefore you pay no tax; if they knew you had it, they would tax you for it.

Of course you would be an honest law abiding citizen and let the county know you own such vehicle correct ? :lol:

Landjet 11-23-2009 11:22 AM

Are there any states that don't have sales tax? I doubt it.

Lupin..the..3rd 11-23-2009 11:28 AM

Quote:

Originally Posted by Landjet (Post 291976)
Are there any states that don't have sales tax? I doubt it.

Alaska, Delaware, Montana, New Hampshire and Oregon.

kaefer 11-23-2009 11:53 AM

Where I live in VA you can title a car, pay the sales tax on it, but not register it, and not have to pay annual property tax. I think this varies depending on the county you live in.

If I were to register the car to drive on public roads that's when the property tax bills would kick in.

Eric S 11-23-2009 12:14 PM

Quote:

Originally Posted by kaefer (Post 291982)
Where I live in VA you can title a car, pay the sales tax on it, but not register it, and not have to pay annual property tax. I think this varies depending on the county you live in.

If I were to register the car to drive on public roads that's when the property tax bills would kick in.

I think this is the key and it matches Tony's question. It is my understanding that titling implies ownership and that the personal property is based on that fact, not whether the vehicle is registered.

RE the garaging angle, Fairfax County requires you to pay Fairfax County personal property tax if you own it and live in Fairfax County - regardless of where it is stored/garaged.

As for sales tax, that is not the tax I'm concerned about paying; don't like it, but it is a given. What I'm talking about for those who don't live in a "commonwealth" is Personal Property tax of $4,500 per first $100k of value EVERY YEAR.

kaefer 11-23-2009 12:19 PM

Quote:

Originally Posted by Eric S (Post 291987)
I think this is the key and it matches Tony's question. It is my understanding that titling implies ownership and that the personal property is based on that fact, not whether the vehicle is registered.

RE the garaging angle, Fairfax County requires you to pay Fairfax County personal property tax if you own it and live in Fairfax County - regardless of where it is stored/garaged.

As for sales tax, that is not the tax I'm concerned about paying; don't like it, but it is a given. What I'm talking about for those who don't live in a "commonwealth" is Personal Property tax of $4,500 per first $100k of value EVERY YEAR.

I hear ya. That's why I like antique 911's so much. No annual property tax in VA on vehicles 25 years old or older when registered as antiques.

Go by yourself a '73 RSR or a SCRS or something similar. They're factory Porsche race cars with no annual property tax!

kaefer 11-23-2009 12:22 PM

Quote:

Originally Posted by AJ986S (Post 291971)
AFAIK, the DMV doesn't care if you title the car one day, and then sell the car the next (at least in MD). But getting it titled will require the payment of purchase tax; I know this is the case in MD, and probably in DC. Not sure about VA.

Yep, same in VA.

Cliff Claven 11-23-2009 12:42 PM

from fairfax county website:

"A vehicle is subject to tax if it is normally garaged or parked in the County, even if registered in another state. Tax on motor vehicles is prorated for the portion of the year it is located in the County unless the vehicle is moved to a non-prorating Virginia locality."


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