Any way to avoid paying tax on ADM?

[RaptorWhoSaysNI]

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.

It all comes down to principle! Well done on pushing back and not giving in!! Unless it's the LAW, there is always a way around it.

 

[jazroc56]

I have never seen ADM on any of my PAs as the sales price. Ever. The sales price is the MSRP, the dealer markup is just that.. no different than a doc fee included. You don't pay sales tax on that either(unless in your example or others you are seeing dealers sneaking fees as the sale price of the car) which is nuts to me.

Again YMMA, but if the dealer does it the right way or essentially the only way I've ever been part of a transaction like this you will not pay sales tax on the ADM. Bought GTR, Demon, Viper, Raptor, M3 and never had to pay more than sales tax of the msrp. In multiple different states with multiple dealerships. Not only that, but I've never even had to argue this or question it. I just bring my title to the dmv with the BOS and good to go.

My “sales price” was MSRP plus 5k…no delineation between sticker and ADM.

 

[MDJAK]

Supposed they threw a birthday party and no one came. There would be no party. Suppose they threw a war and no one came. There would be no war. Suppose dealers charged markups and no one paid them. There would be no markups.

I get my kicks on Rt 66, and walking out when they say markup.

 

[smurfslayer]

Supposed they threw a birthday party and no one came. There would be no party. Suppose they threw a war and no one came. There would be no war. Suppose dealers charged markups and no one paid them. There would be no markups.

I get my kicks on Rt 66, and walking out when they say markup.

You have won FRF today

 

[MDJAK]

You have won FRF today

I'll take the win. I would've preferred to win the Super Boring Bowl pool I was in for a c-note, but oh well.
It was so long ago the last time I won, having chipped in on a box with 3 guys from work at a bar we were drinking it, that when I went to collect they guy paid me in hundreds. When I divvied it up, a thousand apiece to the 3 coworkers, one (un)grateful ahole says to me, "What am I going to do with hundreds?" I said shove them up your a n u s.

 

[glaciergray]

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.

I should have been doing this. After all, my dad still lives in Montana and I own cattle on his ranch, just never incorporated there.

 

[bugmenever]

The dealer can't help but set a markup and cram the extra cost into the total final price for the buyer. Otherwise, how can we define the dealer's role in these transactions and economic relationships and what is the point of such a dealer? It's the same with real estate agents, middlemen, and various assistants who offer a service because they can and understand it, and you pay for time, proximity, etc. If we were talking about providing services online, it would be easier to automate and keep records through revenuegrid.com directly with vendors and clients