Overhaulin'

Who must file or report use tax when a car sale is made by a independent buyer and seller?

I bought my used car from an independent seller in L.A. and I live in California. So I would need the latest use tax regulation for California that relates to this area of automobile commerce. I'm asking this because even though I agreed with the seller that what I paid was the "full and complete" price, the DMV says I still owe taxes on the car. And no tax claims have been filed by the seller. So my question is who is really responsible for acquiring the tax for the car and who is responsible for physically giving the tax to the government? I know if taxes are required I must pay them, but shouldn't the seller take care of the rest?

Public Comments

1. The buyer is required to pay the tax. If there is a difference in sales price, as opposed to fair market value, the Department of Revenue in Ca would require a statement from you that the car is valued less for "x" reason. If the reason is not exceptable, the Dept. of Rev will require you pay the tax based on the fair market value of the car. This situation occurs and is regulated because, people would go to the DMV, make a statement that they bought a 2003 Ford truck, for say, 500dollars, pay the tax on 500dollars and the state was losing huge amounts of tax revenue. We all know, that a 2003 truck would be valued much higher, but since the statement was made, there was nothing by law to stop this activity. So, the Dept of Revenue in most states, regulates the amount of sales/use tax, and determines what is a fair selling price for a vehicle, by using blue book values. Most states, or many, will not allow a vehicle to be gifted more than once, have determined that a vehicle is worth at least 200dollars for the engine alone, and will collect the tax based on value.