Pay tax on MSRP or actual sale price?

I'm a little envious of those of you who don't have to pay property tax on vehicles. With 4 vehicles (2 teens), and a camper, it gets expensive. Thankfully my kids have older cars, so they're cheaper. I looked up how property tax is figured in Kansas, though, on campers. It looks like if you have a camper that is 5 years old or newer, you pay $70, plus .90 per 100 pounds. So, not cheap, but it could be worse, I guess.
Don't even get me started on our home's property taxes. Ugh!

JALLEN4 wrote:

The Texan wrote:
JALLEN4, a dealer himself, is trying to protect his fellow sales folks, NOT trying to help you with valid info.

Yes, it is weird that there are 3 documents, 2 with the MSRP, including the "bill of sale" with the MSRP. Guess what, you are going to pay sales tax on the MSRP.

Yes, I am a retired dealer. That means I probably know what I am talking about and not just a knee-jerk reaction assuming the dealer is committing fraud.

The Manufacturers Certificate of Origin is the instrument which the manufacturer uses to transfer ownership to the dealer and also can be used to transfer ownership from one dealer to the other of the same brand. When the unit is sold to the retail buyer, it is used to create a title in the state where it is to be registered. It does list the MSRP, serial number, etc.

The buyers order is the instrument used as a legal contract between buyer and dealer. This will state the financial details of the transaction and legal responsibilities of each party. It will clearly state the actual sales price.

Most people never see the MSO because they don't pay cash for an out of state purchase. But, an MSO exists for every new vehicle manufactured and the dealer normally uses this instrument to apply for a title in the purchasers name.

When you present the MSO, buyers order, and the bill of sale to your local Kansas DMV, they will collect the tax due on the $65,000 sales price and ultimately produce a Kansas title in your name. Millions of these motor vehicle transactions occur yearly and 99.9% of them are totally transparent and routine. Unlike what internet people with no knowledge will lead you to believe.

Thank you. This makes complete sense.

You should have paid SALES TAX on the agreed on purchase price. You may have to pay a "value code" for vehicle registration or property taxes depending on how your state/county do things..

In WA state, my registration shows a "value code" of "36470". Not sure where they got that figure, as the sticker price was $43k. I paid $33k for the deal, but I had to pay sales tax for the PRE REBATE cost, which was around $38k.

We don't pay 'property tax' on a vehicle and our registration used to be based off the value code a long time ago, but now it's just a flat fee, but they also add all kinds of other 'tax' stuff, so it's still over $100/yr to register but it's still less than what it was when it was based off the value code!!

Good luck!

Mitch

JALLEN4 wrote:
Do you in fact have a Colorado Title? In most cases, where you pay cash on an out of state delivery, the dealer will give you a "buyers order" and an MSO(Manufacturers Statement of Origin). These two items, when taken to your home state DMV, are used to determine taxes owed and a title in the state of residency is issued. A title and MSO are similar in appearance.

Ditto. Just bought from a Colorado dealer. Dealer didn't collect any taxes. Got the official buyers form (actually was a copy of the one I already had) stating the complete transaction & the MSO form in the mail and when I went down to the local DMV, they collected the taxes & registration fees. Paid taxes only on the total amount we paid for the RV, not the MSRP.

The Texan wrote:
JALLEN4, a dealer himself, is trying to protect his fellow sales folks, NOT trying to help you with valid info.

Yes, it is weird that there are 3 documents, 2 with the MSRP, including the "bill of sale" with the MSRP. Guess what, you are going to pay sales tax on the MSRP.

Yes, I am a retired dealer. That means I probably know what I am talking about and not just a knee-jerk reaction assuming the dealer is committing fraud.

The Manufacturers Certificate of Origin is the instrument which the manufacturer uses to transfer ownership to the dealer and also can be used to transfer ownership from one dealer to the other of the same brand. When the unit is sold to the retail buyer, it is used to create a title in the state where it is to be registered. It does list the MSRP, serial number, etc.

The buyers order is the instrument used as a legal contract between buyer and dealer. This will state the financial details of the transaction and legal responsibilities of each party. It will clearly state the actual sales price.

Most people never see the MSO because they don't pay cash for an out of state purchase. But, an MSO exists for every new vehicle manufactured and the dealer normally uses this instrument to apply for a title in the purchasers name.

When you present the MSO, buyers order, and the bill of sale to your local Kansas DMV, they will collect the tax due on the $65,000 sales price and ultimately produce a Kansas title in your name. Millions of these motor vehicle transactions occur yearly and 99.9% of them are totally transparent and routine. Unlike what internet people with no knowledge will lead you to believe.

Ozlander wrote:

CHBurris wrote:
Hmmm..... It does say Certificate of Origin. Along with it, they sent the bill of sale, which only lists the MSRP. I do have the buyer's order, which states that we only paid $65,000.

You're pay sales tax on the bill of sale value.
And you're gone, the stealer has your money, so he won't do anything.

You must live in KC if your sales tax is that high.

No, I live in Southwest-Central Kansas, middle of nowhere.

CHBurris wrote:
Hmmm..... It does say Certificate of Origin. Along with it, they sent the bill of sale, which only lists the MSRP. I do have the buyer's order, which states that we only paid $65,000.

You're pay sales tax on the bill of sale value.
And you're gone, the stealer has your money, so he won't do anything.

You must live in KC if your sales tax is that high.

JALLEN4, a dealer himself, is trying to protect his fellow sales folks, NOT trying to help you with valid info.

Yes, it is weird that there are 3 documents, 2 with the MSRP, including the "bill of sale" with the MSRP. Guess what, you are going to pay sales tax on the MSRP.

It seems wierd to me that the Buyer's Order and the Bill of Sale have different dollar amounts.

Hmmm..... It does say Certificate of Origin. Along with it, they sent the bill of sale, which only lists the MSRP. I do have the buyer's order, which states that we only paid $65,000.