Used bike sales tax

[Punk'd]

Alright, im prolly going to be buying this motorcycle used for $5000 from a PRIVATE seller. I know in my area sales tax is going to cost me around $300. My question is how does the government know how much your really paying for a bike since its being done privately? Could you say you bought it for like $3000 opposed to $5000 so that you wont end up paying so much?

Im new to all of this. I've always bought new:ermm:

[SGA]

We had our state do that a few years ago, charging sales tax on the sale of used cars and such between private partys.
A lot of people put a lower price on the bill of sale to keep the taxes down.
That works well between friends but not a good idea between strangers in case the deal went sour and the car or bike was stolen or something and problems arose. You could only get back what was stated on the bill of sale.

So many people complained about the used tax between private party sales that our state dropped it after 2 years.

[54warrior]

That's what I've done in the past. Heck, I even bought a car from my neighbor who "gave" it to me as a "gift"-thus avoiding any sales tax!!!!

[Punk'd]

Alright guys thanks. I just dont see the point of paying an extra $300 when that money can be spent on saftey gear.

[Regular_Joe]

Unless your ready to back it up, the NY DMV checks what you say against NADA or KBB. Too far off and you get flagged and investigated for tax fraud. Be careful.