Question about selling car and reporting sale amount (sales, how much)

[m2aoeu]

I moved here from California a few years ago. I remember when I sold or bought a car in CA that you reported the sale amount on the car title. Then, the buyer is taxed based on that value.

How is this done here in Arizona? I'm about to sell a car (damn economy) but I don't see where I report the sale price? Isn't the buyer in AZ taxed on the sale price?

Any help appreciated. Thanks!

[MaxPower123]

I'm pretty sure there aren't any sales tax when buying cars from private parties here.

[las vegas drunk]

There isn't, there are only taxes if you buy from a dealer.

[observer53]

They tax private sales in CA? How do they do it, send a bill to the buyer on the title?

[sh9730]

If I recall correctly, when the new buyer registers the car they must provide a bill of sale and/or signed title and the information of sale price is listed on one or both. You pay the taxes along with new registration fees.

It is very common for parties to "agree" to a slightly different price on the paperwork than vehicle was actually sold for.

[Bummer]

Originally Posted by m2aoeu

I moved here from California a few years ago. I remember when I sold or bought a car in CA that you reported the sale amount on the car title. Then, the buyer is taxed based on that value.

How is this done here in Arizona? I'm about to sell a car (damn economy) but I don't see where I report the sale price? Isn't the buyer in AZ taxed on the sale price?

Any help appreciated. Thanks!

I agree with the others, m2.

Unless the law has changed recently . . . No Sales Tax on Private Party Vehicle Sales. Also, no declaration of sales price necessary as the Registration Fees are determined by the MVD, not the actual price paid, unless disputed by the new owner.

[Master Shake]

No sales tax in Arizona. You simply sign your title over, get it notarized (for the mileage statement) and the buyer pays $10 for a new title, plus the costs of registration (as determined by the State of Arizona).

California did charge sales tax, at least 10 years ago. They probably still do. This is why many buyers/sellers would "sell" their car at $1, as far as the paperwork was concerned.

[observer53]

I seem to remember there has been talk about doing it here, but nothing on the front burner now.

[MaxPower123]

Originally Posted by Bummer

I agree with the others, m2.

Unless the law has changed recently . . . No Sales Tax on Private Party Vehicle Sales. Also, no declaration of sales price necessary as the Registration Fees are determined by the MVD, not the actual price paid, unless disputed by the new owner.

Yeah, I think registration costs depend on the age of the car. Something about being prorated. The MVD's website probably has all the details.

[observer53]

Originally Posted by MaxPower123

Yeah, I think registration costs depend on the age of the car. Something about being prorated. The MVD's website probably has all the details.

Age of car, and MSRP. From the MVD website: (Answer to FAQ question, How much does it cost to register my car?:

It varies depending on the vehicle. There is a $4.00 title fee; an $8.00 registration fee; plus an air quality research fee of $1.50; and a vehicle license tax (VLT) assessed in place of a personal property tax charged by other states. There may also be a weight fee and commercial registration fee, if the vehicle is registered as commercial. The VLT is based on an assessed value of 60% of the manufacturer's base retail price reduced by 16.25% for each year since the vehicle was first registered in Arizona (15% before 8/1/98). Then, as of the Dec 1, 2000 reduction, the rate is calculated as $2.80 (new vehicles)/$2.89 (used vehicles) for each $100 of the assessed value. For example, for a new vehicle that costs $25,000, the first year assessed value would be $15,000 and the VLT would be $420.00. The second year the assessed value would be $12,562.50 and the VLT would be $363.06.

For a mobile home the title fee is $7.00 per section or unit. No other mobile home fees are payable to MVD.