Questions about Sales Taxes, Registration, Title

[kellijaebaeli]

Buying a bus in a few days. Have some questions; hope some of you might be able to shed some light on this.
1. How do we find out what our sales tax will be? I can't find info at DMV site (Arkansas). DO they usually base it on value of the vehicle like they do with cars? Kind of afraid it will be REALLY high. The sale price is $15k

2. And if the bus is already newly titled and registered as an RV, do i have to pay these taxes when i buy it, or when i renew the tag?
3. Also, the DMV told the seller the title would take a few weeks to go through and I don't know if that means the sale can't happen until then, or can we take possession and drive it while we wait for the title?
4. Can we change registration to some other state (I think i heard that somewhere--Vermont?) and pay no sales tax? I'm a veteran, does that make the price less?

[MacC]

I believe some of that will be state specific. Most likely they will use the price that is stated on the bill of sale for a tax basis. Has the seller lost the title and waiting for replacement?? Kind of sounds like it, maybe, possibly. Guessing as you can tell.

[mmoore6856]

do not buy without a title i bought vehicles that looked legitimate [one even had a parking ticket on it ] only to find out a year later it had been reported stolen i got off but lost the money and parts i put in them

[musigenesis]

If you title/register the vehicle in Vermont, you will pay 6% of the sale price ($900 in your case) to Vermont, unless the vehicle is listed in the blue book (which most school buses aren't) in which case they'll tax the blue book value instead. I don't really want to recommend shady dealings of any sort, but possibly you could make the official price on your bill of sale less than the amount you're actually paying.

I wouldn't hand anyone $15K for a vehicle unless they were handing me back a valid title.

[kellijaebaeli]

Originally Posted by MacC

I believe some of that will be state specific. Most likely they will use the price that is stated on the bill of sale for a tax basis. Has the seller lost the title and waiting for replacement?? Kind of sounds like it, maybe, possibly. Guessing as you can tell.

Oh, no, he had it registered as an RV just a few days or a week ago. So waiting on the title.

[kellijaebaeli]

Originally Posted by musigenesis

If you title/register the vehicle in Vermont, you will pay 6% of the sale price ($900 in your case) to Vermont, unless the vehicle is listed in the blue book (which most school buses aren't) in which case they'll tax the blue book value instead. I don't really want to recommend shady dealings of any sort, but possibly you could make the official price on your bill of sale less than the amount you're actually paying.

I wouldn't hand anyone $15K for a vehicle unless they were handing me back a valid title.

Yeah. That's going to be steep, then. He pointed to the DMV assessed amount, and I think it was 20k. Said he'd call them today as we will, to see if that can be changed....I'll look up info in AR again, see what percentage is...He said he wasn't sure why the amount was listed that high. I think they didn't know at DMV how to register a bus.

Problem for us, is, we have to be out of this house by end of this month. So we were going to hang around and get solar installed, wait for title, etc. But I'm not even sure if we can legally possess and drive the bus while waiting on this stuff. Neither did the guy selling it. (yet). He's been really forthcoming with paperwork and details, so he seems honest enough. I think he's just not sure of these details any more than we are at the moment.

[Ronnie]

So he does not yet have the title in hand? If so no sale till he does. Put a refundable down payment on it if you like. Do this in writing. As far as taking delivery of it I would not. You would be driving it on his plates then? If he does not have the title yet you can not register it either.

[s2mikon]

CYA CYA CYA! No title no money. AR may call it use tax not sales tax. I would never recommend anything underhanded to save on taxes, wink wink nudge nudge.

[Phatman]

It’s a sad reality in America but don’t trust ANYONE with that kind of cash !!!

[peteg59]

As others have said, no title, no deal.

Does he have any title application paperwork that shows he has put in for it and is simply waiting, as he says?

Buyer Beware, and don't let yourself get burned in your excitement for a bus!

Good luck, and post pics if everything comes together on your deal...