How the State Values Your Car

Paul Steinberg

Administrator
Staff member
Super Site Supporter
While researching the value of cars that we discuss on these forums, I came across the J.D. Power NADA (National Automobile Dealers Association) price guide, and it does have a value for the the 1955 Ford Courier Sedan Delivery (our discussion is about the 1955 National Ford Sedan Delivery Ambulance)(https://professionalcarsociety.org/threads/1955-national-ambulance.23626/#post-841941154), between $18,600 to a whopping $106,300. Now, you might wonder how they come to these values, and it is claimed that these values are taken from actual sales of similar vehicles. As we all know, there is a wide difference that determines value, and at best, it is subjective the the whims and desires of the buyers and sellers. Many times, a car is listed as a 1955 Ford, however, it might be a survivor in poor condition, or it could be a barn find in excellent condition. It might be a high dollar resto rod that has a $20,000 blueprinted and balanced racing engine installed. I know that some states use the NADA book to determine sales taxes and personal property taxes on collector cars, and the car that you purchase at a public auction for $10,000, might be valued for sales tax purposes at $25,000. Here is a report the State of CT.... https://www.cga.ct.gov/2001/rpt/2001-R-0153.htm
Check the value of your collector car on their website, and lets discuss this topic. For my car, I selected a 1962 Chevrolet Bel Air basic station wagon, and it came up with an average value of $31,000 for the base model. I am certainly happy that the State has set a fixed value on all collector cars at $500 for personal property value taxation. Our towns tax rate is $25 per thousand, or $775 every year, if it were not a collector car. There has been legislation to move it to $2500, however, it was defeated every time. Does your state have a personal property tax? I know that MA and NH do.
 

John ED Renstrom

PCS Member - Elected Director 2017-2021
Super Site Supporter
The only tax in SD is sales tax. On autos you pay sales tax on the trade difference taxed at 3%.
 
Emperor NipplesI has yet to figure out a system to tax collector cars. That may be largely due to a number of Legislators being car collectors, or it might be due to no pre 72 vehicles in NY having titles that make them easy to track.
 
When I bought my 1963 Superior for $1000 the state of MN refused to issue a new title due to claiming I didn't pay enough in Taxes...they claimed the car was valued at $7500...though they had no idea the condition of the car...when I called to inquire as to how they came up with that number I was asked what type of car it was...I said if you don't know....where did you get that value from? I had to prove to them that it was only worth what I paid with as found pictures...fresh out of a 25 year hibernation minus the engine along with a estimate from a repair shop showing the engine replacement cost alone would be more than the $7500 value they gave it....and they did release the title. Of course prior to this issue they informed me the VIN was missing a letter... the morons had made a clerical error changing the 63Z to 632. I told them that was their fault for misreading it. Had to go back to the original owner and fill out a form confirming the VIN...at first they wanted me to haul it to the main DMV office in St Paul for an inspection...as the only way to rectify it..at my cost. Unacceptable. I asked them where I could send the bill as it was their error...and threatened them with a suit...I was then told of a simple form....which is what I did. Took 6 months to clear up the issues. Would have been easier without the title in MN.20190818_185013.jpg
 

Daniel Scully

PCS Member
Super Site Supporter
Well , one good thing here is value is declard by the buyer. The seller sends in a release of liability which has sale date and price . Unless you state some crazy cheap price no problem , even then most people fudge a little. :oops:. But not me :rolleyes: Only once in 20 years have I been questioned by the DMV. As long as the seller and buyer state the same facts , no issues .
 
Last edited:

John ED Renstrom

PCS Member - Elected Director 2017-2021
Super Site Supporter
Now me i have done a lot of things to clear up a title. Sd is simple a bill of sale with the amount of the transaction and date on it. The signed title from title states. Funny how hard it is to get people to send the bill of sale with the title. But luckily for me i been able to find them in the court house parking lot when i needed to, even the dead ones .
 
Well , one good thing here is value is declard by the buyer. The seller sends in a release of liability which has sale date and price . Unless you state some crazy cheap price no problem , even then most people fudge a little. :oops:. But not me :rolleyes: Only once in 20 years have I been questioned by the DMV. As long as the seller and buyer state the same facts , no issues .
In my case I was 100% honest about the purchase price. First time I've ever had that happen in over 50 cars bought. Until this happened I had no idea that the MN even did that. Live and you learn I guess. But I did find it comical that they could assign an astronomical value and have no clue what kind of car they were even talking about.
 
Now me i have done a lot of things to clear up a title. Sd is simple a bill of sale with the amount of the transaction and date on it. The signed title from title states. Funny how hard it is to get people to send the bill of sale with the title. But luckily for me i been able to find them in the court house parking lot when i needed to, even the dead ones .
And usually in MN its really a super simple transaction. They've even gone VERY lenient on applying for a title for cars without as long as they have been unregistered for over 7 years. Bill of sale, back story, pictures of each side, and one 2 or 3 page form.
 
Top