California SB100 Question ? ? ?

[Randy Rosenberg]

Hi Adam,

Your situation is not uncommon...

Back in 1992, the DMV titled these cars differently than they do today. I've talked to lots-o-guys with older Cobra replicas, and it's amazing how many different ways the DMV legally titled these vehicles.

You're in what I call a "gray area" where your title was (most probably) not issued illegally, however it doesn't meet today's standards. As you may already know, the state is pulling titles from those who used titling services to have their Cobras titled - this is a form of title washing, and the DMV is pulling the titles of these vehicles based upon the on-going investigations of these out-of-state title companies by the Attorney General's office. Assuming that back in 1992 the original owner didn't use a title service, but followed what the DMV told him, then chances are extremely low that the DMV will ever approach you to pull your title and demand that you correct it (bring it up to today's standards).

However, there are two Senate Bills (SB953 & SB577) which each propose an "amnesty" program to encourage the correction of vehicle titles. The intent of this program is to encourage those who used a title service (or other such means of titling) to correct their vehicle's title with amnesty from prosecution. At the same time, the state is looking to acquire revenue, due to the their expectation that the value of these vehicles are under-reported (and therefore the owners have not pay their full share of title and annual registration fees). One of the obsticles of these bills is that our community of Cobra replica owners strongly believe that without significant relaxation of the current smog requirements with respect to our replicas, many will not take advantage of such an amnesty program. I have clearly stated this to both Senators who authored these two bills, as well as to SEMA.

(Again) assuming that the original owner followed the process prescribed by the DMV at that time to title your replica, then my advice is for you to continue to renew your registration annually, and to take advantage of any possible anmesty program to bring your title up to current standards, only if the state can provide a realistic means of smog requirement relaxation. Until then, due to the limited number of SB100 Sequence Numbers (the only means of smog requirement relaxation available for post-1966 engines), I do not recommend that you take action now to bring your title up to today's standards.

Hope this helps,
Randy R...

[Turk]

It is NOT the first time SB-100 was isssued under "SUSPENSE".

I went through the same thing last year. My friends applying for registration for their cars within days of me, were up and running within days. Mine took an additional 6 months before I was given my plates and title.

Brace yourself.

Only in California you would be expected to pay sales taxes on something you already own. Actually they also want to the value of your OWN labor to be included in the declared value of the car so they can tax you for YOUR labor.

If you, yourself do a $10,000 paint job using $500.00 f materials you are expected to pay taxes on the $10,000 because that adds to the value of the car..

TURK

[What'saCobra?]

Good grief, Mr. T!

Is that really so? Absolutely f'nly unbelieveable. It means every kit build is at least $5-10K under taxed? What rate per work hour? MY hours taxed to MYSELF?

Is any gain on the resale above cost basis also taxed? Do i get a rebate on the prior taxed work? Or do i pay an additional tax on the taxed value of the work?

Did i ask that correctly? Sheesh!

i don't even want to think about this mess. It is too complicated and contradictory for words.

Thank goodness we can still vote with our feet.

As Horace Greeley said, "mon back boys; i was only kidding about that 'go west, young man... go west" thingy.

--------------
Historical note:
(Actually that quote, "Go west, young man...", was first written by an Indiana editor, John Soule, but Greeley gets the attribution because he wrote on a bigger paper, New York Tribune, 1841 or so, which he founded as editor around 1833. Few folks know that Greeley also employed Karl Marx, [the real one and not the lost Marx brother], as a european correspondent in 1850 for a while. Greeley was the democratic party candidate for president in 1872, but lost to US Grant, the incumbent. Horace died in a sanitorium less than a month later. It has frequently been wispered that Karl Rowe arranged his demise with his time machine, but Rowe refuses to deny the story. Certain typewritten papers have been discovered regarding Rowe's hand in this, but there is some discussion amongst experts about the historical availabiliity of that particular typeface or font being available on the IBM Selectric at that time.)

[Anthony]

Originally posted by Turk


Brace yourself.

Only in California you would be expected to pay sales taxes on something you already own. Actually they also want to the value of your OWN labor to be included in the declared value of the car so they can tax you for YOUR labor.

What's wrong with that?

[OCsparky]

Randy thanks for the advice. That is kinda what i was planning on doing but i was a little scared and just wanted to hear someone else say it.
Thanks,
Adam