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Nc Tax Whamy

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Posted by: mideastrider---------------------

Checked my mail box yesterday and to my surprise received a letter from the North Carolina Dept of Revenue. It starts by saying, “We have information which shows that you purchased items that were shipped to you at the above address.” (My home) Turns out it was a bike I bought new in South Carolina on Dec. 2006. No shipping involved except my own truck. They are looking for sales tax, interest and penalty. I pull the bill of sale and it plainly shows that I had paid the sales taxes. Next thing I do is call NCDR. The lady was very nice and said “it’s no problem send a copy of the bill”. I thought so far so good this is easy enough. She then said we will make an adjustment and send another bill. (WHAT)To make a long story short nothing can be done about the interest it has to be paid. The difference between the tax I paid and what they say I owe has to be paid. (About 8 bucks) The only way to avoid the penalty is download some forms to fill out and send in. The bummer in all this is that I did everything right during the purchase to make sure this didn’t happen. Now at best they waive the penalty ($125) and I end paying the interest and the tax difference. (35 bucks) I don’t know how this came about but if you live in NC and buy bikes out of state beware they are checking.


Posted by: IndyMX---------------------

Did you pay cash?


Posted by: mideastrider---------------------

yelp Paid cash


Posted by: XRpredator---------------------

That ain't no whammy, that's S.O.P. pretty much anywhere that has sales tax. You register a bike, you'd better figure on paying sales tax on it. Shipping doesn't matter, whether you pick it up or the other guy brings it to you.

I'm not going to tell you that you might be able to get around paying a lot in a private party sale if you have the seller put down a lower price than you actually paid, especially if you paid cash, because that would be unethical and probably illegal, but I've heard that people will do that.


Posted by: FruDaddy---------------------

A similar thing happened to me once, in GA. I bought a street bike (from a dealer) in a county that I didn't live in. I later received a bill for the difference in sales tax.


Posted by: friar tuck---------------------

My brother lives in NC. I didn't think you had to register offroad bikes? Was this a street bike you had to register? I know he bought his bike in Ohio a couple years ago, and hasn't paid any NC taxes on it.


Posted by: mideastrider---------------------

No you don't have to register offroad bikes in NC. No where on the letter does it say motocycle. All it refers to is a purchase.
I also agree paying sales tax is S.O.P. But paying sales tax at time of sale then getting billed for tax plus interest and penalty would qualify as a (double) WHAMY.


Posted by: XRpredator---------------------

ah, I misread.

Yeah, you got honked. You should have only had to pay sales tax from one state or the other.

Normally, being a motor vehicle, you would pay the sales tax in your own state. You should be able to get your money bac from South Carolina.

good luck, man


Posted by: bsmith---------------------

Quote:
I'm not going to tell you that you might be able to get around paying a lot in a private party sale if you have the seller put down a lower price than you actually paid, especially if you paid cash, because that would be unethical and probably illegal, but I've heard that people will do that.

Welcome to Washington the state where they don't believe you. If they feel your sales amount is low, they break out the NADA book and determine their taxable amount.
I had a 1971 Chevy 1 ton, they though my $300 sales price was low, and said $1200 was more in line. I had to explain it had no transmission for them to accept the value.


Posted by: BadgerMan---------------------

Quote:
Originally Posted by XRpredator
Normally, being a motor vehicle, you would pay the sales tax in your own state. You should be able to get your money bac from South Carolina.

good luck, man


Pretty odd situation IMO. Since a dirt bike is not really a motor vehicle per se, why did the SC dealer feel compelled to report the sale to your home state? The tax was paid to SC and the transaction should not have been visible to your home state, same as if you drove down there and bought a lawn mower or washing machine.

If it was a street legal bike, then SC should not tax you and you would then pay sales tax to NC when you license it there.

Man, I hope the states are not sharing info on purchases from other states. Just think of the ramifications with all of the internet shopping that goes on! Luckily, I never buy anything from another state via the internet.




Am I missing something?


Posted by: XRpredator---------------------

Quote:
Originally Posted by BadgerMan
Am I missing something?

it's got a title.


Posted by: BadgerMan---------------------

Quote:
Originally Posted by XRpredator
it's got a title.


Then SC sales tax should not have been paid.

However, the post above implied it was an off road bike and not a "motorcycle".

Quote:
No you don't have to register offroad bikes in NC. No where on the letter does it say motocycle. All it refers to is a purchase.



Posted by: XRpredator---------------------

agreed on the SC tax

someone screwed the pooch, and that pooch is mideastrider.



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