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Does automobile property tax cause title defects?



David Smith
12/14/2004 12:57:12 AM


If you sell your personal automobile when a local government is
claiming you owe back property taxes on it, does that mean you're
selling it with a title defect?
In other words, when a local government imposes property taxes on
automobiles, is it really just a personal tax on the owners of those
automobiles, or is it the same as a real property tax, such that the
property itself carries the tax liability?
 
 
"Theodore A. Kaldis"
12/13/2004 5:47:30 PM


David Smith wrote:
If you sell your personal automobile when a local government is claiming
you owe back property taxes on it, does that mean you're selling it with a
title defect?
WTF?
In other words, when a local government imposes property taxes on
automobiles, is it really just a personal tax on the owners of those
automobiles, or is it the same as a real property tax, such that the
property itself carries the tax liability?
If there is a lien against a vehicle, generally the lienholder has possession
of the physical title. And the title is stamped, and the lienholder must
sign off before the title can be transfered. But if you have the title, and
it isn't stamped indicating any kind of lien against it, you can probably
sell it, and the new owner does not assume whatever existing tax liability
some government pinhead says you owe them. But they will almost certainly
continue to assert that you still owe it to them.
And I ain't no lawyer, so this ain't legal advice.
--
Theodore A. Kaldis
kaldis@worldnet.att.net
 
 
"Christopher Green"
12/13/2004 6:05:45 PM


David Smith wrote:
If you sell your personal automobile when a local government is
claiming you owe back property taxes on it, does that mean you're
selling it with a title defect?
In other words, when a local government imposes property taxes on
automobiles, is it really just a personal tax on the owners of those
automobiles, or is it the same as a real property tax, such that the
property itself carries the tax liability?
It wouldn't be unusual for the local authority to report the taxes
delinquent to the state; then the state slaps a registration hold on
the auto. I suspect one common outcome is that the buyer has to pay the
back taxes in order to register, then go after the seller (if the
seller is worth trying to collect from, which may not be the case).
--
Not a lawyer,
Chris Green
 
 
"Richard"
12/13/2004 8:19:14 PM


David Smith wrote:
If you sell your personal automobile when a local government is
claiming you owe back property taxes on it, does that mean you're
selling it with a title defect?
In other words, when a local government imposes property taxes on
automobiles, is it really just a personal tax on the owners of those
automobiles, or is it the same as a real property tax, such that the
property itself carries the tax liability?
No. You're still liable to the government body for the taxes.
If you sell a house and owe taxes on it, does the new owner bear the
responsibility? Nope. You do.
The only other thing you can do is challenge the tax in court.
 
 
"Falky foo"
12/14/2004 4:37:02 AM


If you sell your personal automobile when a local government is
claiming you owe back property taxes on it, does that mean you're
selling it with a title defect?
Won't the DMV spot the problem when the buyer tries to transfer title?
In other words, when a local government imposes property taxes on
automobiles, is it really just a personal tax on the owners of those
automobiles, or is it the same as a real property tax, such that the
property itself carries the tax liability?
Generally it's a special car registration tax. But let's assume it's not.
It would probably be a personal property tax like on people's boats. I
believe the gov't can put a lien on the vessel.
Let's say amid all the red tape you transfer title even with the lien,
several things may happen. When the buyer finds out the title is defective
he'll sue you, when the gov't finds out that the dude who owns your car now
is not you, it'll come after you.
--
Falky
San Diego, Calif.
----------------
Disclaimer: This has been the opinion of a law student, not a lawyer.
Author advises each reader to get the opinion of a legal professional.
This post is not intended to be legal advice.
 
 
Daniel Ganek
12/14/2004 10:18:29 AM


Richard wrote:
David Smith wrote:
No. You're still liable to the government body for the taxes.
If you sell a house and owe taxes on it, does the new owner bear the
responsibility? Nope. You do.
The only other thing you can do is challenge the tax in court.
Never had enough money to buy a house, right Richard?
WRST real property the taxes are on the PROPERTY. That's why there's
all those machinations when buying real property.
/dan
 
 
"Richard"
12/14/2004 1:04:10 PM


Daniel Ganek wrote:
Richard wrote:
Never had enough money to buy a house, right Richard?
WRST real property the taxes are on the PROPERTY. That's why there's
all those machinations when buying real property.
/dan
Wrong!
While you may not consider a mobile home, a "house", I pay property taxes on
it just the same.
If I were to sell it, the buyer would be responsible for the taxes, not me.
Same is true for a car.
 
 
Dan Ganek
12/15/2004 1:27:38 AM


Richard wrote:
Daniel Ganek wrote:
Wrong!
While you may not consider a mobile home, a "house", I pay property taxes on
it just the same.
If I were to sell it, the buyer would be responsible for the taxes, not me.
Same is true for a car.
Bzzzt. You don't pay real estate taxes on a mobile home. You probably
paying personal property taxes. "Real Estate" taxes go with the REAL
PROPERTY. A mobile home isn't real property in any state I know of.
/dan
 
 
"Christopher Green"
12/15/2004 5:05:42 PM


Falky foo wrote:
If you sell your personal automobile when a local government is
claiming you owe back property taxes on it, does that mean you're
selling it with a title defect?
Won't the DMV spot the problem when the buyer tries to transfer
title?
Would if the local entity reports such a tax delinquency to the state's
DMV. If the tax delinquency is a recent one, the transfer may pass
through ahead of the report, depending on how the state works.
(California, which is the state I am (and you, I guess, are) familiar
with does not have such a system: there is no local property tax on
vehicles. There is a state property-tax-like tax on vehicles, called
the "license fee". Other states do have local personal property taxes,
and vehicles are often a class of taxable personal property.)
In other words, when a local government imposes property taxes on
automobiles, is it really just a personal tax on the owners of
those
automobiles, or is it the same as a real property tax, such that
the
property itself carries the tax liability?
Generally it's a special car registration tax. But let's assume it's
not.
It would probably be a personal property tax like on people's boats.
I
believe the gov't can put a lien on the vessel.
Liens are too complicated when all the gov't has to do is put a hold on
the vehicle's transfer or registration. They can do that
administratively, if the state's laws are set up that way.
--
Not a lawyer,
Chris Green
 
 
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