I recently found out a lot about our state's DMV and their ability to extort
unjustified extra taxes (perhaps to pay for their new non-functional
computer system).
Having moved here from California five years ago, I had come to think of Nevada as a resident-tax-friendly state. .. not so at the DMV. For the past two years, I had been driving a leased vehicle, and decided to purchase thatautomobile with the intention of reselling it to a friend (at the same price) on the same day that I purchased it from the leasing company. The leasing company (car dealership) charged me sales tax on the transaction (leasing company sells car to me) ... then the DMV "double-taxed" my friend by imposing a second sales tax on the transaction a few hours later (I sell car to friend).
I went down to the DMV to protest (enduring a one and one-half hour wait in line to ask a few simple questions), but was told that all protests would fall upon deaf ears. The fact that I had a bill of sale showing that the sales tax was paid a few hours earlier made no difference to them.
They wanted to issue a new title representing the few hours that I actually owned the car; then do the whole title-thing over again when the car's ownership passed to my friend.
The whole thing was enough to make me want to move back to California (NOT!). The real story is about money, and taxation of each and every transaction as an auto passes hands to the ultimate registered owner. In
California the "pink slip" can go to many people in the sales-chain, and until
it is filled in with the name of the new registered owner ... it is still valid and good. Issuing a new title for each transaction is not only stupid and inefficient, but also a drain on our state's revenue.
What happens when a dealer takes in a car for trade/resale? Does he pay tax on the trade-in, only to have the DMV re-tax on the resale of the vehicle?
I think not. He has a resale certificate allowing him to do tax-exempt
purchasing. This system is unfair to the common citizen.
They way I see it, the state of Nevada owes my friend a refund on the second taxable transaction.
DON CONWAY
Carson City
