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Lowering price on a Bill of Sale to reduce vehicle tax
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Lowering price on a Bill of Sale to reduce vehicle tax - March 30, 2016, 09:19 PM

I've already read this thread talking about MD DMV


My question applies to VA DMV. What are the repercussions if you put a lower price on the BOS in order to pay less in registration tax? If the there is a lien on the title, will the DMV inform the lender of the lower amount and thus cause issues down the road?

Thanks in advance.

Oh and this is all hypothetical btw...wait no, I'm asking for a friend.
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March 31, 2016, 04:09 AM

They won't accept your number if it is out of range. You will need to get a notarized BOS in this case and if they ever wanted to prove it, you would be committing fraud. If you are paying cash, it is less provable I suppose.

Its a bit of petty thievery if you are doing it to misrepresent what you paid for something.

Last edited by BlackHatch; March 31, 2016 at 05:51 AM..
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March 31, 2016, 05:43 AM

I did this years ago in VA, but it was for a wrecked bike. Book was in the $5k range, but I paid $1900 since the fairings, handlebars, lights, and tank were trashed. I had to get the bill of sale notarized and sign an affidavit at the DMV that I actually paid $1900. After that, the DMV charged sales tax on $1900 and I was done.

Not sure how this works with a lien since I paid cash. Savings only amounted to $130 or so, but it would be a bigger savings in MD.
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March 31, 2016, 06:24 AM

Had to get a notary when I dropped $8k on the Diavel. Bit of a pain, but it worked out.


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March 31, 2016, 07:09 AM

Thanks for the feedback. My friend decided to go the straight & narrow lol
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March 31, 2016, 08:57 AM

For future reference, here's the DMV form, fill it out and have it notarized. That's it.

http://www.dmv.virginia.gov/webdoc/pdf/sut1a.pdf




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March 31, 2016, 09:56 AM

"Effective July 1, 2015, unless exempted under Va. Code 58.1-2402, Virginia levies a 4.10% Motor Vehicle Sales and Use (SUT) Tax based on the vehicle's gross sales price or $75, whichever is greater."

So to pay $75 (which is the minimum tax amount you would pay) you need to put a value of $1,829 or less on the bill of sale. Anything more, the 4.10% kicks in. Simply put; don't put $1....I always put $1,100 on the BoS so that I'm only paying $75, nothing more. I never get anything notarized and it has never been an issue or even questioned.


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March 31, 2016, 10:38 AM

I've never gone in with BOS that hadn't been notarized or showed a price of less than the NADA value and been able to pay taxes on what I've paid. Each time I had to present a notarized BOS for the amount I paid if that was the amount I wanted to pay taxes on.

It's luck if you get by without a notarized BOS.


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March 31, 2016, 10:56 AM

Quote:
Originally Posted by ReasonableDoubt View Post
"Effective July 1, 2015, unless exempted under Va. Code 58.1-2402, Virginia levies a 4.10% Motor Vehicle Sales and Use (SUT) Tax based on the vehicle's gross sales price or $75, whichever is greater."

So to pay $75 (which is the minimum tax amount you would pay) you need to put a value of $1,829 or less on the bill of sale. Anything more, the 4.10% kicks in. Simply put; don't put $1....I always put $1,100 on the BoS so that I'm only paying $75, nothing more. I never get anything notarized and it has never been an issue or even questioned.
This is what I did when I was in VA. Granted I didn't buy anything that was 5 years old or newer.
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March 31, 2016, 10:59 AM

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It's luck if you get by without a notarized BOS.
I wouldn't consider it luck since I've done it at least 6 times in the past 6 years with various vehicles at various DMV locations.


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March 31, 2016, 11:51 AM

Maybe the Mods should re-title this thread "How to get away with Tax Fraud." Just so you folks know, tax fraud is taken a bit more seriously than speeding if you get caught. Not to mention you are just making everyone else pay more or you are just leaving the budget short so that the roads fall apart even faster.


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March 31, 2016, 01:07 PM

When I bought the 076R it needed some work to make it road worthy, and when I showed the bill of sale with dealership markings they said the price was too low and I would have to pay taxes based on KBB, if I wanted to go get a notarized BOS I could get the difference in taxes back. The difference really wasnt worth my time to pay a notary and wait in line at the DMV again so I just bit the bullet.


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