[Thorin]

Federal income tax would be based on the fair market value of what you win - if the car is valued at $125,000 and you pay $25.00 for the ticket - you would add $124,975 to your other income for 2003 and pay income tax based on your tax bracket.

State taxes are based on the state you live in - both income and sales tax. Here in Texas, no state income tax, but would have to pay sales tax on some amount, probably fair market value again, when vehicle is registered.

Dave Lowell