PA Aggressive Sales Tax Approach on Private Used Car Sales
Motor Vehicle Understated Value Program (MVUVP)
It has come to our attention that individuals who are purchasing a vehicle in PA via a private sale may receive a notice in the mail that they are being assessed PA sales tax in an amount greater than six per cent (6%) of the purchase price.
A tax practitioner shared the following story with us: I had a client who purchased a car from a former employer for the blue book value with adjustment for the high mileage (over 200,000). The PADOR sent the individual an assessment for what the DOR felt the car was worth. In response, the taxpayer sent PA documentation to support the purchase price. The documentation included Kelly’s Blue Book Value, an appraisal from a car dealership, photos of the odometer and the inside and outside of the vehicle. Despite the documentation sent to the DOR, the DOR sent monthly deficiency notices to the taxpayer.
The MVUVP allows the PA DOR to assess additional sales tax [Read more…] about PA Aggressive Sales Tax Approach on Used Car Sales