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High-End Car Owners in Massachusetts Escaped Massive Taxes

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Old 07-14-08, 07:03 AM
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Overclocker
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Default High-End Car Owners in Massachusetts Escaped Massive Taxes



Some people get all the luck.

Thanks to a foul-up by the Massachusetts Registry of Motor Vehicles, owners of some 131,000 ultra-luxury cars, such as Lamborghinis and Maseratis, escaped or paid only a fraction of the auto excise tax they owed the state.

How did this happen? From the late 1990s to 2007, the RMV calculated the vehicle tax bills with a database from the National Auto Dealers Association. The problem is—and boy, this is a hoot—NADA excludes high-end luxury cars.

Therefore, someone who bought a $1.5 million vehicle in Boston during that period likely paid less in excise taxes than someone who purchased a Honda Civic. In the worst-case scenarios, RMV workers guesstimated ultra-luxury car values at $17,000. In the case of a $325,000 Maserati, the tax would amount to $383 rather than the correct $7,313.

The real losers are the cities and towns of Massachusetts, which overall lost $32 million per year—money they won’t recoup because the state has found it to be too costly, laborious and possibly illegal to charge luxury car owners for the back taxes.

The question is: How many other states use the NADA database? And for those that do, how many have mechanisms for tallying ultra-luxury vehicles?

Luxury Car Levy Too Taxing for State (The Boston Herald)
Source: http://blogs.cars.com/kickingtires/2...nd-car-ow.html
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Old 07-14-08, 07:21 AM
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Dammit!

I should have bought that Aston Martin!!!
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Old 07-14-08, 07:51 AM
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What Maserati costs $325,000? All the Maseratis I know of are either much cheaper (Coupe, Spyder, GranTurismo, Quattroporte) or much more expensive (MC12)
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Old 07-14-08, 09:48 AM
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hahahahaha thats awesome ... i love it when i pay less tax because some1 goofs
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Old 07-14-08, 10:27 AM
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Originally Posted by Faymester
hahahahaha thats awesome ... i love it when i pay less tax because some1 goofs
yeah but most of the time its the exact opposite.
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Old 07-15-08, 12:13 AM
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Originally Posted by Faymester
hahahahaha thats awesome ... i love it when i pay less tax because some1 goofs
Yes but in this case it just means EVERYONE ELSE paid more than they should have.
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Old 07-15-08, 11:16 PM
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FSUJBP
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Here's my take on what probably happened: The dealerships where the cars were sold collected the correct amount of taxes and kept the difference.
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Old 07-16-08, 09:15 AM
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I say as a person who didn't buy an exotic, charge them now. Backtaxes suck but you can't dupe the rest of the state for your failures.
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Old 07-16-08, 09:26 AM
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I'd say whoever caused that "goof" was probably a politician who was about to buy himself a bentley and couldn't scramble enough change for the taxes... So instead he bent the law a little bit. Goof happens.
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Old 07-17-08, 03:08 AM
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Just another example of big government not capable of one single rational thought. What were they thinking? Million dollar car.........hmmmm the tax rate should be.......eany meany miney moe.........oh that's right, we'll charge less than a Honda! Brilliant!
It was certainly a windfall for the lucky owners who didn't have to pay!!
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Old 07-17-08, 01:02 PM
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So a temporary regressive tax was unknowingly imposed. I would like to see what other cars are listed as ultra-luxury. 131,000???
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