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When the tax man comes knocking..

1buckeyefan1

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Sep 21, 2017
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So normally i'd be petrified to receive a letter from the Ohio Dept of Taxation, but this one has me laughing at the absurdity of it:

"As required by law, the Ohio Dept of Taxation is conducting a review of motor vehicle title transfers..As part of this review you are required to provide us with information to verify the purchase price."

It goes on to give me the opportunity to provide the completed questionnaire, or remit $5988.39 in back taxes (more than I paid for the 1974 bronco in the first place).

Anyone care to guess their determined purchase price? I'll give a hint that my state tax rate is 7%.

"Based on the difference between the average selling price of $89,658.33 and the amount reported on the title:

Wow, ClassicFordBroncos must've really driven up the average price of an EB this year in Ohio.

For kicks, I'm going to call in tomorrow and try to gain some insight into how they came to this calculation. And to think it was pulling teeth to get Grundy to insure my EB for $10k just a few mos ago. I knew EB prices were on the rise, but this is great!
 

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chuckyb

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Oct 25, 2016
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Whoah. Hopefully something went wrong with the taxation abacus they are using. Good luck and let us know how it works out.
 

Slowleak

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Sep 12, 2013
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Georgia
Tell them you would be willing to sell them the Bronco for $80,000 which would allow them to resell it and recover much more than the amount of taxes you owe.
 

1strodeo

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Sep 15, 2016
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Wisconsin
Dude that's gotta be a typo! I got a letter like that when I reported my purchase price as $1500, they said it was worth like $6500 and I owed like $300 in taxes, but I had a bill of sale so I never heard anything after I mailed in a copy.

Buddy of mine down the street got a 66 Impala convertible from the original owner for $6500, got a letter from Ohio saying it was worth $10k so he owed taxes. Had to get the 80-something year old dude to write a letter, BS!!
 

triracer67

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Very similar thing happened to me in Illinois. I traded my bronco for another bronco, seller lived in Missouri. It's legal and tax free to trade in Missouri. So, we did the Missouri paperwork, and I paid him one dollar with receipt and we transferred titles. Illinois DMV said I was good with trade paperwork and processed my title and plates, it was way too easy. Three months later I got bill from Illinois tax assessor for almost $3000. So, after hours of getting transferred to "the boss," he explained it wasn't legal and they are charging me tax on high KBB. I asked what the valuation was and he told me $45000. Mind u, it didn't run. So, I asked him where I could drop it off since Illinois was going to give me $45k for my junker. He wasn't amused! Long story short, I had to get appraisal to prove them wrong, this whole process took almost one year. Good luck and remember they have all the power, even if they are 100% wrong.
 

AZ73

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I'm going to sell my Bronco in Ohio. They're paying top dollar there for average and mine's above average. And here I thought it was California paying top dollar.
 

hyghlndr

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Hockessin, Delaware
Delaware went to book price only and use a classic car guide so if you buy a $100 piece of rusted garbage you pay at least the minimum book value which can be $20000 as tax basis. Passing these stupid laws just pushes people to get creative and they get nothing.
 

Nobody

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Stanwood
Please delete this this thread immediately. If my stupid state catches wind of this they’ll certainly implement it 10 fold.%)
 

McLeod

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Please delete this this thread immediately. If my stupid state catches wind of this they’ll certainly implement it 10 fold.%)

Actually, they already do something similar, just not as bold as many others.

Try to transfer a title to a vehicle that you got a killer deal, had gifted to you or is a low value parts vehicle.

Despite what you paid (or didn't pay) for it, they will disregard the figure and attempt to charge you a full ride (regarding the 9 to 10 % sales tax) on the "official value" of the vehicle in excellent condition.
They DO NOT care that you paid less. Only their number matters.

If you fight back, they will only change the tax owed if you go back to the seller and all parties need to complete more paperwork and get it all notarized and submitted. The last time I did this, I stood around waiting while the agent called Olympia to get permission to use the lower value.%)
 

jckkys

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Mar 15, 2012
Messages
5,196
This is just another reason to live in a free state. I grew up in Ill. that's so broke they can't pay for much of anything and the population is declining. There's a wing of the state prison for crooked ex-governors.
 

ransil

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Sep 6, 2003
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8,122
they started checking market value 5 or so years ago in Pa . when transfering if low they have you sign a paper stating the condition.
looks like they are off a decimal point, look at nada for a 76 and low retail is 9K.
 

Timmy390

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Jan 1, 2011
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5,609
Loc.
Conway, AR
It's shocking the levels state officials will go to when trying to collect every possible dollar of your earned earned money. Who are they to say what something is worth and if they don't inspect it, they should have no claim.

I've never understood why anyone would live in a high tax state. I know it's not as simple as "just move" but that's what I would do.......AR is not perfect but they are not pulling stunts like that.

Tim
 
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1buckeyefan1

1buckeyefan1

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Sep 21, 2017
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Well that was anticlimactic.. I called in to inquire how they calculated the sale price and they took care of it over the phone. I tried to prod a bit more to get them to say it was an error, but all they could say was "we went back to the last few sales". Unsure if our friends at classicfordbroncos drove up the avg sale prices here recently or if it was an error. Regardless, thankfully all it took was a quick phone call to clear it up.

Something else to add to the build scrapbook I suppose :)
 

1strodeo

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Sep 15, 2016
Messages
3,596
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Wisconsin
Anticlimactic isn't always bad.

That’s NOT what she said ;D

Seriously though I forgot I still have not titled the 72 I bought in November. The PO titled it in 2011 and guess what the purchase price is on the title??
100 BUCKS!!! This should be interesting...
 

nvrstuk

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Just a Bronco driver for over 50 yrs!
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8,614
I'm sure it's not CB.com, it's flipping E-bay... :)
 

McLeod

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Jun 29, 2008
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I think he was referring to classic ford broncos dot com
not
classicbroncos.com
 
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1buckeyefan1

1buckeyefan1

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Sep 21, 2017
Messages
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I think he was referring to classic ford broncos dot com
not
classicbroncos.com

Yep, other than an obvious decimal point error, I suspect their $200k EB's might have somehow skewed the avg price up to $89k. Although from what i've read, they've only sold one to someone in ohio. I suspect the fact that they're selling from ohio may have somehow skewed the avg prices that Ohio dept of tax uses.
 
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