Tennessee certificate of origin

crawler1 · Jul 19, 2016

Tennessee certificate of origin question .

I purchased a side by side from a guy in Tennessee with a certificate of origin from him . I have had it a few months and looking to sell it and up grade . I sold it to another guy up here in Illinois and he went to tittle it in his name . The Great state of Illinois said they will not change it over to to a title with out the original owner going back an paying the sales tax in the state of Tennessee . I contacted the original owner and he pretty much said pretty much said screw off . Is there and thing i can do to get around this ? can it be sold back to some one in Tenn. with out having to pay the tax on it . if so i may just try to resell it to some one else .

ridered3 · Jul 19, 2016

crawler1 said:
Tennessee certificate of origin question .

I purchased a side by side from a guy in Tennessee with a certificate of origin from him . I have had it a few months and looking to sell it and up grade . I sold it to another guy up here in Illinois and he went to tittle it in his name . The Great state of Illinois said they will not change it over to to a title with out the original owner going back an paying the sales tax in the state of Tennessee . I contacted the original owner and he pretty much said pretty much said screw off . Is there and thing i can do to get around this ? can it be sold back to some one in Tenn. with out having to pay the tax on it . if so i may just try to resell it to some one else .

Never heard of that, but not sold or purchased a side by side either.

Highlighted the text in question, so your state wants the original owner (seller), to pay sales tax on either A) his original purchase years ago or B) pay sales tax on selling it to you?

Want to make sure I understand what your state is wanting first.

crawler1 · Jul 19, 2016

My Local DMV said the the first owner would have to pay the sales tax on the whole original amount of the machine tittle it in his name then sign it over to me .

Craig_c · Jul 19, 2016

I'd just sell it with no title/c.o.o. Most do not have that after a couple years anyways.

crawler1 · Jul 19, 2016

were i live if you barrow money as most people have to , the bank wants a title . not a bill of origin or bill of sales .

ole heep · Jul 19, 2016

If someone wants a title for the machine, then the "buyer" or whoever wants responsibility has to pay the sales tax for the original NEW purchase price of the machine. This goes for pretty much any OHV that just has a MSO. Government wants there $$$ because sales tax had never been paid on that vehicle.

Craig_c · Jul 19, 2016

Why was sales tax not paid at initial purchase? I had to pay sales tax on my Rzr when I got it in 09

gottagofast · Jul 19, 2016

Yep sales tax must be paid no matter what state it's in... If the mco is blank then the new owner can be the "original owner" and pay it but otherwise there is tax owed on it... You can refund his money and sell it again w a bill of sale OR you can tell him the same thing the original owner told you lol

Marty · Jul 19, 2016

This is what sucks about selling razrs to out of state buyers, I bought one in TN and live in NC, well TN doesn't accept NC sales tax so I have to pay it to NC at the dmv. But I got a TN title for it, so I wonder how that works when I want to sell it to someone who wants to title it, cause TN tax was never paid. I have sold a couple and honestly its easier to sell it to someone in a state that doesn't title them like NC. All the states need to do the same thing IMO its a PITA sometimes. I have lost a few potential buyers by not having a title (cause I have bought one in NC as well and theres no title given, just a COO.) But with a COO the buyer can title it wherever I think.

Hillbilly · Jul 20, 2016

Disclaimer* I've never bought a new 4wheeler/Utv before.

How does sales tax not get paid when it was originally purchased NEW? Claim it for farm use or something? :dunno:

blacksheep10 · Jul 20, 2016

Hillbilly said:
Disclaimer* I've never bought a new 4wheeler/Utv before.

How does sales tax not get paid when it was originally purchased NEW? Claim it for farm use or something?

Buy out of state. It is your responsibility to register it (and they collect tax at that time) when you get back to your home state. KS doesn't have titles. Just the MSO or whatever the cert of origin is called.
I farm use exempted mine, not sure how that's going to play when I sell it.

extremetownie · Jul 20, 2016

If it was bought in Tn ,sold to someone (the original owner) from Tn. The dealer is required to collect sales tax. If this is the case and the dealer failed to. He has broken the law. If this is the case i would contact the original dealer,explain the situation and request nicely that he issue a new MCO to the current buyer. If he refuses,i would politely explain to him that your next call will be to the State of Tennessee Dept of Revenue. I believe that should clear up matters.

pushrod-racing · Jul 21, 2016

Same issue in Tennessee with trailers, I purchased a 18' better built car hauler off this site. Guy advertised it clean title and so on. Got it home looked and it wasn't a title it was a certificate of origin. Luckily for me since the guy I bought it from wasn't willing to help me, I tracked the original purchaser who had his original receipt from where he purchased the trailer new. On that receipt it showed he had paid sales tax. My local clerk said reason he wasn't issued a title and was issued a certificate of origin was because he opt not to register it at time of purchase. My local clerks ended up sending the origin in along with the receipt and I ended up getting a title on the trailer only because original owner was willing to work with me.

But several times in my buying/selling/trading on trailers and items I have ran across where its not a case of person didn't pay taxes its just a case they chose not to register it. Friend of mine just bought a used 28' trailer and had to pay original sales price taxes in order to register it. Made a great deal on a trailer turn into a horrible deal. Years ago an old timer told me never buy anything with a cert of origin and after my above situation I understood why.

crawler1 · Jul 21, 2016

The

extremetownie said:
If it was bought in Tn ,sold to someone (the original owner) from Tn. The dealer is required to collect sales tax. If this is the case and the dealer failed to. He has broken the law. If this is the case i would contact the original dealer,explain the situation and request nicely that he issue a new MCO to the current buyer. If he refuses,i would politely explain to him that your next call will be to the State of Tennessee Dept of Revenue. I believe that should clear up matters.

i was originally bought from TN. by a guy in ill who paid cash for it .

extremetownie · Jul 21, 2016

crawler1 said:
The
i was originally bought from TN. by a guy in ill who paid cash for it .

If it was bought out of state. It is all legal as far as the dealer is concerned.

gottagofast · Jul 21, 2016

The original purchaser is required by law to pay sales tax upon getting home...

I dunno, maybe there is legal recourse to force the issue.... Maybe call (or just threaten to call) the IRS.

KEEP IN MIND that this sword cuts both ways.... EVERY subsequent purchaser (if residing in a state with sales tax) including you was ALSO required by law to report and pay taxes on the vehicle...

By law you are supposed to pay the sales tax usually when you do your state income taxes.

blacksheep10 · Jul 22, 2016

gottagofast said:
The original purchaser is required by law to pay sales tax upon getting home...

I dunno, maybe there is legal recourse to force the issue.... Maybe call (or just threaten to call) the IRS.

KEEP IN MIND that this sword cuts both ways.... EVERY subsequent purchaser (if residing in a state with sales tax) including you was ALSO required by law to report and pay taxes on the vehicle...

By law you are supposed to pay the sales tax usually when you do your state income taxes.

Not IRS. Sales and Use taxes are state, county and city all rolled into one in most states. State Dept of Revenue in the relevant state

pushrod-racing · Jul 22, 2016

Its not a matter of taxes where never paid. Its a way the state has of getting more money out of you. Like I said before with my situation my taxes had been paid but the policy at the courthouse is.....if its a certificate of origin this means its never been registered and taxes on original price must be paid. Im positive you will not find a dealership to sell you a new rzr and let it leave that building without paying taxes on it. This is just a matter of a way for them to make more money. Like trailers and sxs most people do not register or put these things in their names. So they know this and that is why they push this.

4byfan · Jul 22, 2016

There was a discussion in one of the razor threads either earlier this year or last year about people buying out of state so they wouldn't have to pay tax on a new razor. I tried it a couple of times on new dirt bikes out of state and received a nice letter in the mail about 6 months later that said u are gonna pay this amount now. When u get ready to sell it's less of a pain in the ass also. Now days most people want their title if they're gonna drop 15 or 20 grand.