Vehicle Title Problem

[Muttonbuster]

First off bring on the insults, as long as you also have advice.

I bought my first motorcycle last may and sold it last month only to find out I never had the title transfered into my name. Im 23 and that is not something that they cover in high school or college. I went to the local tax office only to be told it'll cost me almost $600 to have the title transfered into my name! On a bike I sold for $3100 this just does not seem logical. Is there anyway around this? I don't have any problem paying what needs to be payed, but this just seems like highway robbery!!

Please let someone out here know a loophole or quick fix!

 

[TexasRedneck]

It's called "stupid tax".....we've all paid it in varying amounts over the years. Looks like you're gonna have to put on your "Big Boy" pants and pay it....sorry!

 

[Bultx1215]

What you are probably paying is sales tax plus the title fee. They will charge you based on what the vehicle is worth on their books rather than what you actually paid for it. Basically, there is no way around it. You have to pay it if you want he title to change.

 

[TangoUniform]

I don't understand. If the title is still in the original owners name, and you did not fill out the ownership transfer on the back, why are you transferring to your name? The new owner can transfer it without transferring to you. Car dealers do it all the time. If you did fill out the back you might go back to the previous owner and ask if he would apply for a new title.

Might save a couple dollars but I don't know of the legalities if any.

 

[San Antone RR]

How did you just "find out" you didn't transfer the title? The new buyer just took the bike and title with someone else's name on it?

 

[TheDan]

I'm guessing you never transferred it to your name so the bike was never street legal? lol...

Dealing with the bureaucracy isn't worth the hassle... Just part the bike out. Might actually make more than your selling price.

 

[winchster]

You say you sold it. If you sold it, then you have committed a skip. The legal solution is to pay the tax and title fee, then legally sell it with proper paperwork to the person you sold it to. Lot's of people just get an affidavit and leave the skip alone. I'm not advocating breaking the law though.

 

[Jakashh]

Not sure of the validity of this, but I've heard that you could tell them you got the bike as a gift, and are giving it away as a gift, and that will allow you to pay less... but that's illegal!

 

[zembonez]

Unfortunately, the only way to legally solve this is to have it titled in your name (and pay up the tax) then hand the title over to the buyer so that he can go put it in his name.

Taxes are calculated on the bike's value - not what you paid for it. Not much way around it legally. The same goes foe cars, trucks, etc.

I do this all day long every day. I am a car buyer by trade.

 

[TxDad]

The limits on a "gift." This is only 10 bucks. I have done it, but it was to my parents, so it was all good. I dont think it can help you. I dont know your relation to the buyer.

Title FAQs

What steps should I follow to give a vehicle as a gift to a friend or relative? Please give the recipient your (signed) negotiable title and request that the recipient complete a title application (form VTR 130-U), which must be provided to their county tax office.

Effective September 1, 2009, when a motor vehicle is transferred as a result of a gift, the title application must be accompanied by the Texas Comptroller of Public Accounts Form 14-317, Affidavit of Motor Vehicle Gift Transfer. The donor and recipient must both sign the affidavit and title application. The "$10 Gift Tax" only applies to a person who receives the vehicle from a:

• Spouse
• Parent or Stepparent
• Grandparent or Grandchild
• Child or Stepchild
• Sibling
• Guardian
• A decedent’s estate
• A vehicle donated to or given by a Nonprofit IRC Sec. 501(c)(3)

On the title application, the recipient who qualifies should check the "$10 Gift Tax - Affidavit required. Use Comptroller Form 14-317." box found in Section 21. The recipient will have to provide proof of auto insurance at the county tax office to register the vehicle.

This one is something that protects the seller in case the buyer never transfers the title.
https://vision21.txdmv.gov/Vehicle/MainTransferNotification.aspx

When a Texas-titled vehicle is sold or traded in, the seller needs to notify TxDMV. By completing a Vehicle Transfer Notification you are notifying TxDMV that you have sold a vehicle. When you submit the form a remark will be added to the vehicle record which shows the date you sold the vehicle. This can protect you if the buyer fails to promptly transfer the title.​

YOU MUST SUBMIT THE VEHICLE TRANSFER NOTIFICATION WITHIN 30 DAYS TO REMOVE LIABILITY​

If you submit a transfer notification within 30 days of sale, the buyer shown becomes the vehicle's presumed owner and may be subject to criminal or civil liability for parking tickets, toll violations, fines or other penalties that occur after the date of sale.

You have three notification options: ​

• Submit Transfer Notification Online
• Print & Mail Form
• Complete Form Online & Print

 

[Texasjack]

NOW you begin to understand why us "old folks" complain so much about taxes.

 

[tmd11111]

What your actually saying is you bought the motorcycle and never registered it in your name. If you had they would have collected the sales tax then. If you and the seller you purchased it from filled out and signed the title like you were suppose to then there is no way around it.

 

[BennyJ]

As long as the original owners signature is on the back of the title and yours IS NOT, you can have the new buyer transfer it from the original owners name. You can also find a title clerk do the work for you. I buy and sell cars all the time and always make sure only the owners signature is on the back and make sure they sign a title transfer form and am good to go.

 

[zembonez]

It's still illegal.

 

[Designated]

The amount is also probably high because you get late fees if the sale was dated and you take longer then 30 days to register it. Like if a title or bill of sale was signed or dated. Also the office will go off the higher of the 2 values to determine what you owe-either whatever you tell them or whatever the computer brings up.

 

[TexMex247]

I co-own a licensed franchise dealership here in Texas for motorcycles(although we actually sell motor scooters). Here's the long and short of it. Most people buy a vehicle, see that the tags are current and never register it in their name. When you do that you are basically in possession of a vehicle that is technically not your property until it is registered. If you receive parking or red light tickets, they are sent to the previous owner. This is the number one reason why a seller should accompany you to the tax office to get it done at the time of sale. Dealers are allowed a one time re-assignment when the vehicle is traded in to them. You may be paying late fees as well if your bill of sale reflects a past date. You used to be able to say you paid little or nothing for a vehicle, nowadays you have to have a bill of sale to prove it or they utilize a database to estimate its value. There is NO cheap option for you other than to pay the taxes on it or authorize a repair shop to "do some work" on it and then place a mechanics lein on it when you don't pay for it. When they file a lein, certified letters are sent to the original owner and they are informed of the repair bill. If they don't pay it,it becomes the shops property. If you are really lucky, you have a friend who owns a shop who can "perform the repairs" and will sell the bike to your friend after they get a title for it. This is the only way our shop can take legal possession of abandoned vehicles. It usually costs a shop about $200 to file a mechanics lein and then they only pay taxes on the value of the repair.Unfortunately, all the stars have to align just right for you to proceed this way. You would have to know the shop owner personally for them to help you out this way and even at that, it's a pretty scetchy way to get it done. Good luck with it, live and learn.