[Don]

A letter to the Editor of the Manchester CT Journal Inquirer mentioned a Sales Tax policy I was not aware of.

If the vehicle is purchased from a private party, the Sales Tax is calculated based upon the market value source used by the DMV, not the amount listed on the Bill of Sale. In the example, the vehicle had been purchased from a non-profit organization at below market value. Bill of Sale was notarized. Buyer had to pay the Sales tax based upon the DMV market value which was higher.

Mentioned was the buyer could apply for a partial refund based upon the Bill of Sale amount by contacting the Dept of Revenue Services and submitting the paperwork, seller has to sign the document.

Does not apply if the seller is a licensed dealer. There was no mention of what happens when the private party purchase price is higher than the source used by the DMV, which was not specified

An unknown is how the DMV would value a Cobra replica for Sales Tax purposes vs the actual sales price.

Anyone have any experience or a correction to the points mentioned in the letter ?