Any way to avoid paying tax on ADM?

[smurfslayer]

I am interested in why they couldn't enforce their own policies and procedures. Most often those policies and procedures are what the courts look at when the state law is silent, and courts give deference to the agencies own interpretations of their rules/policies if ambiguous.

there was enabling legislation, and state administrative code, but MVA had no stated ‘authority’ explicitly or implicitly to charge more than the receipt, and in such a case they wanted a notarized receipt. I’m ok with it, if the ‘policy’ is authorized properly and theirs was not. Maybe they did have that authority but they couldn’t cite it or point to it so I insisted they accept the receipt. I grew up there, and had seen quite a few really awful things happen to people. Like sending some guy home because some seller signed the wrong line on the title, only way to correct is get a new title from Glen Burnie. I had to do that dance once, and that was a major, day long affair. Or the guy who was assessed a compulsory insurance fee of almost $3000.00 on a beater, Dodge Dart Swinger - he was in front of me in line. The car wasn’t even worth $300.00 - their fee was $200 for the first 30 days without insurance, and 5 or 7 dollars per day after that. At that time, there was no cap on that amount.
When I was 19, I had a couple of vehicles and got cheaper insurance on the newer one I kept full coverage on, so I called to have the old insurance company cancel that policy. They cancelled -all- my policies, landing me on the compulsory insurance violator list. MVA sends insurance proof demand letters every 6-12 months to those people, seemingly in perpetuity. I got a demand letter in I think it was 2000 for a car I sold in 1989. In my last MVA interaction, I ended up speaking with a woman on either Christmas eve or the day before who thought my situation sounded peculiar, so she did some digging. I expected nothing but later in the afternoon she called me back, found the previous insurance paperwork, and the sale of the car - she even sent me a letter advising the demand was satisfied.
I can’t imagine having to deal with MD MVA again...

 

[ME120]

So I’m sure there are way more people here that paid ADM and just don’t want to admit it… so you can start your reply with “I heard”

Anyway, anyone know of a way around paying tax on ADM? Paying over already bothers me and paying tax on top of that’s like saying thank you after being *****.

Yes it’s real simple, don’t be a idiot and pay ADM at all.

 

[smurfslayer]

Yes it’s real simple, don’t be a idiot and pay ADM at all.

I’m not sure, and I’ll bet other readers aren’t sure either. How do you REALLY feel about ADM?

 

[GraniteRiver]

LLC in Montana for a few hundred dollars, pay no sales tax.

 

[Macdaddy]

I’m not a lawyer or state employee but I did stay at a holiday inn last night. Wouldn’t ur quickest answer to this be; to go down to the dept of motor vehicles and ask? All I know is CA is the worst and so moved to MN but in Cali you aren’t taxed on what you say you paid or even a bill of sale (private party on used cars) because they know everyone is saying they paid far less than they actually did, even sellers will tell you when signing over title “I’ll let you fill in the mileage and purchase price”.So the dmv there goes strictly by KBB pricing as they’re tax base. Not relevant to ur problem but thought I’d share current state of affairs some states.

 

[MookeyB37]

Yes it’s real simple, don’t be a idiot and pay ADM at all.

If you read why I’m paying ADM (I’m assuming you can read from your highly intelligent response) it is what it is.

You want something specific, sometimes you have to pay for it

 

[LuckyKnuckle36]

LLC in Montana for a few hundred dollars, pay no sales tax.

Anybody ever really done this. I was seriously thinking about this as I don't plan to trade anything in...

 

[PandaBoi]

Anybody ever really done this. I was seriously thinking about this as I don't plan to trade anything in...

Would love to know if anyone here has done the Montana plate workaround too, it’s also useful for other things too I’ve heard.

 

[GraniteRiver]

Yes, I’ve been doing it for several years, 7 vehicles so far.

 

[MDJAK]

Correct. State sales and use taxes are codified, generally, on the actual sale price of the vehicle. I’d encourage you to know the law and administrative code your state vehicle registrars use BEFORE you sign.

If you buy private party and obtain a bill of sale, the tax is on the actual sale price. Pay attention here, you may need a notarized receipt.

I got into an all day long fight with the MD MVA branch chief in Waldorf, circa 1992 or 1993 on my first Mustang, bought used for around 6400 bucks or so, which was substantially under KBB. MD admin wanted full KBB because it was 1200 higher and I said F*** you, here’s my receipt, I didn’t pay that.

Oh, but Mr. Smurfslayer, MD requires a notarized receipt for anything under kbb value.

“Cite to authority, please”. followed by perplexed looks, so I followed up with “show me in the state code or state regulations, your authority to charge me more than the receipt, and/or your authority to require documentation above what the courts require”. This poor woman was absolutely stymied. They wanted me to move out of line, and I refused - “I have business with MVA, have the required documentation and the funds to complete the transaction”. They called a charles co. deputy, and he backed me, so they could not service another person until I was done -- So they got someone else at the counter.

I made them produce the code book - this is pre pdf days, pre strong internet search, etc. So they brought out 2 volumes of MVA regulations, rules and policies that were easily Webster’s unabridged sized. I made the branch chief pour through that manual to find the relevant authority. It took her 30 minutes to try and bargain out of it and I offered “I’ve taken the whole day off, and you’re not charging me another $200 in taxes”. Back to the books. About mid afternoon, she found it, and the text was an MVA “policy”, not a state regulation or law and they lacked authority to enforce it. I demanded they process the registration & tax at my receipt’s price, eventually she relented.

I knew the state law at the time, but I was sketchy on administrative code. I knew they couldn’t legally enforce agency ‘policy’ on me though through probably 10 years of encounters with MD MVA, all of which were negative. I got fed up with being abused by them and came prepared. Yes, it cost me an entire day off, which was at best a break even affair for saving $200 but I didn’t make much at the time and that money was important to me.

If your ‘sales price’ of the vehicle includes the ADM, it’s taxable.

Now that is a fantastic story. Love that you did that and came out on top.