Bay Area News @ 11 PM
 

For those interested... Bay Area (California) Channel 7 KGO News @ 11pm this evening is having a special report on the CA DMV licensing scandal. What I can tell from the news clip and photos it is focused around the Cobra replicas, saying "this is only the tip of the iceburg".

This is past my bedtime but I'll be staying up tonight--after just going through this whole ordeal.

Here's the web address for the article, for those interested in this topic:

http://abclocal.go.com/kgo/news/7oys...tle_fraud.html

We told you so
 

Wow, some of you cats got big problem$, even if it's a car you haven't owned for years.Other states to follow?What the heck is the solution?

This is a scam like texas. You should pay sales taxes once when the car is new. I mean how many times do we have to pay sales taxes on a car. The average person buys a car new or used every 5 years so if you got a 54 chevy 10 people paid sale taxes on that one car. We car lovers might buy 5 cars in one year. Its all about the taxes

Dino

I'll have to record this one.

I understand that in the past "Titles Unlimited" appeared to be the only way to get a Cobra registered. Reading the article posted by Randy, it appears that some people have elected to use "Titles Unlimited" to skirt around the tax requirements of registration by registering a $50,000 car as a $500 car. Can't say that I'm real sympathetic if someone is purposely committing tax fraud. I pay my fed and state taxes, and don't care to carry free-riders, myself.

For those that have played on the up-and-up, paying their taxes AND getting caught up in this cross-fire (see other CA DMV thread), I do express my sympathy.

Ok lemme get this straight. You go down to SIA and buy an engine. It was 30k (you bought the economy model) Out the door it was $32,240 with tax.

You then register your car and get taxed on it's value again???

I warned you not to give up your assault weapons...

LOL! Yes, it doesn't make sense in so many differnet ways.

Every time I've bought a car, I wonder, why do I pay tax on this car, even though the last person paid tax on this car? And so on.

Bottom line, they want our money. :rolleyes:

You guys sure got it tuff. :(

Here in Australia we have whats known as GST ( Goods and Services)tax...not unlike the English VAT tax. It replaced the old wholesale sales tax.

When you purchase a new item or service then the seller adds 10% and pays that to the federal tax fella.

However, if the fella who sold you the new item or service purchased it from some-one else then he ( the fella who sold it to you) would have paid 10% on his purchase cost ( to the fella he bought it from), and deducts that from the tax he collected from you.

It is the difference which gets paid to the federal fella.

Once an item becomes second hand...it is exempt of GST tax.

To give you an example....lets say a cobra kit manufacturer buys raw materials and bits and pieces to make a cobra kit and it costs him $10.000 plus $1000.00 GST tax ($11000) to his supplier. He builds the kit and sells it to you for $18.500 plus GST of $1850.00 ($20350).

When he does his GST return at the end of the month...he declares he collected $1850.00 from you and credits the $1000.00 paid to his supplier, and sends a cheque off for $850.00. to the federal tax fella.

Once you own it and it's second hand....you can sell it to ya mate down the road and no tax is payable.

However, If Jamo was practicing in Aussie land and was representing you in some dispute which went to court and a barrister was used for the court hearing.

Jamo would charge you $50,000 for his work plus $5000.00 GST. Included in that figure was $1650.00 ($1500 plus $150.00 GST)for a half days work by the barrister. Jamo would send off $4850.00 to the federal tax fella.

It was the solution the federal Government choose when confronted with the problem that the wealthy were not paying sales tax on many items during the older wholesale sales tax regime.

The wealthy are huge consumers....they buy expensive cars, expensive houses, employ expensive solicitors and barristers to save them tax. They now pay a larger share of the country tax burden. ;) ;)