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Discussion Starter · #1 ·
I bought a CTX700ND in July from a private owner. I met the owner at the title bureau where I gave him $5,000 cash, we wrote $5,000 on the title as the selling price, we transferred the title, I bought plates and such, and rode it home.

I just received letter from the Ohio Department of Taxation asking for further proof as to how much I paid for the motorcycle. They stated that the average selling price is $11,088.95. I'm really curious as to where they got that number, as it's not close to reality.

Fortunately, I am still in touch with the previous owner, and he was kind enough to send me a notarized bill of sale, which is what Ohio was requesting. Without that, that's just charge me the additional tax at their made up selling price, and cost me nearly another $500. I just sent my additional paperwork in to Ohio and I hope this is the end of it.

I'm sharing this partly because I just want to vent. It's annoying since we did everything on the up and up. I rarely buy or sell a vehicle, but I'll be sure to get additional paperwork next time, like the bill of sale or a receipt in addition to the title.
 

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I bought a CTX700ND in July from a private owner. I met the owner at the title bureau where I gave him $5,000 cash, we wrote $5,000 on the title as the selling price, we transferred the title, I bought plates and such, and rode it home.

I just received letter from the Ohio Department of Taxation asking for further proof as to how much I paid for the motorcycle. They stated that the average selling price is $11,088.95. I'm really curious as to where they got that number, as it's not close to reality.

Fortunately, I am still in touch with the previous owner, and he was kind enough to send me a notarized bill of sale, which is what Ohio was requesting. Without that, that's just charge me the additional tax at their made up selling price, and cost me nearly another $500. I just sent my additional paperwork in to Ohio and I hope this is the end of it.

I'm sharing this partly because I just want to vent. It's annoying since we did everything on the up and up. I rarely buy or sell a vehicle, but I'll be sure to get additional paperwork next time, like the bill of sale or a receipt in addition to the title.
WOW! I thought TEXAS was bad.They charge you on a set charge for that vehicle.Whether it's mint with low mileage or high mileage with a bad body.Wisconsin is much better,they go by what you write on the title and if it seems too low they will investigate. jasperj
 

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Probably grabbed the cost of a CTX1300 and thought it was the same....

That or they were referencing the original new cost of a CTX700 fairing model (which is still way under what they quoted)....
 

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Discussion Starter · #7 ·
Probably grabbed the cost of a CTX1300 and thought it was the same....

That or they were referencing the original new cost of a CTX700 fairing model (which is still way under what they quoted)....
Yeah, it's really non specific. It just says average cost of a vehicle. What vehicle? All motorcycles? All Hondas, including cars? Because it's nowhere near the average cost of my bike.
 

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Discussion Starter · #8 ·
WOW! I thought TEXAS was bad.They charge you on a set charge for that vehicle.Whether it's mint with low mileage or high mileage with a bad body.Wisconsin is much better,they go by what you write on the title and if it seems too low they will investigate. jasperj
And this is pretty much what they're doing. They think the price is too low, so they are investigating. The thing is, though, they have bad data, so it falls on me to prove it.
 

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And this is pretty much what they're doing. They think the price is too low, so they are investigating. The thing is, though, they have bad data, so it falls on me to prove it.
Go to cycletrader.com and put in the search parameters for your model and within 300 miles of your location. Print the search results and make sure the date/time is printed on the paper. Should be sufficient to at least prove it is closer to your price instead of what they are claiming.
 

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The problem is they are hoping that you open up a can of worms. They can claim you have a deliberately low ball receipt and a number of other things. Usually what it will fall back to is this is the price we have, so pay up or pay the penalty. You can go to court, and most likely win, but that will take time and money, more money than the tax. They know this and they win. The ball is in your court and they hold the rackets. This is actually the first time I have heard of a state enforcing these sneaky tax rules. They really must be desperate for money.
 

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If you Google “CTX700 MSRP” you can find many sites displaying the MSRP for the year of your bike. For example HondaProKevin has the MSRP for a 2016 (DCT CTX700N $ 7,599). Depreciation over 6 years @ $433 per year sounds reasonable. A bill of sale is a must have document along with the title in Florida.
2016 Honda CTX700 DCT Review / Specs / Pictures / Videos | Honda-Pro Kevin
 

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Discussion Starter · #13 ·
The problem is they are hoping that you open up a can of worms. They can claim you have a deliberately low ball receipt and a number of other things. Usually what it will fall back to is this is the price we have, so pay up or pay the penalty. You can go to court, and most likely win, but that will take time and money, more money than the tax. They know this and they win. The ball is in your court and they hold the rackets. This is actually the first time I have heard of a state enforcing these sneaky tax rules. They really must be desperate for money.
Damn I hope it doesn't come to that. They said a notarized statement from the seller was an acceptable document, which is what I sent them. Hopefully that's enough.
 

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Discussion Starter · #14 ·

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Discussion Starter · #15 ·
The problem is they are hoping that you open up a can of worms. They can claim you have a deliberately low ball receipt and a number of other things. Usually what it will fall back to is this is the price we have, so pay up or pay the penalty. You can go to court, and most likely win, but that will take time and money, more money than the tax. They know this and they win. The ball is in your court and they hold the rackets. This is actually the first time I have heard of a state enforcing these sneaky tax rules. They really must be desperate for money.
I'm hoping that it's a fishing expedition in their part. If someone sends in the documents, they drop it. If someone doesn't, then they pretty much just win and they pursue that it's a cheap way to raise money.

They gave me only two weeks to send in my documents, including Thanksgiving. They have 60 days to review and let me know. So that's how that works. Do I'll know in two months.
 

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I'm hoping that it's a fishing expedition in their part. If someone sends in the documents, they drop it. If someone doesn't, then they pretty much just win and they pursue that it's a cheap way to raise money.

They gave me only two weeks to send in my documents, including Thanksgiving. They have 60 days to review and let me know. So that's how that works. Do I'll know in two months.
I think you'll be fine given what you've provided. It's out of your hands now so don't give it a second thought as the ball is in their court.
 

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Sucks that Ohio is so hard up they have to go fishing for dollars...I mean $5000 selling price should not look remotely suspicious to anyone who has a clue.

Always get/create a bill of sale when buying a used vehicle to avoid issues like this in the future. I always require the seller or buyer to produce identification as well. Some peeps buy used and then resell without registering, and you can have the government coming back to you for property taxes on a vehicle you no longer own.
 

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Discussion Starter · #18 ·
Sucks that Ohio is so hard up they have to go fishing for dollars...I mean $5000 selling price should not look remotely suspicious to anyone who has a clue.

Always get/create a bill of sale when buying a used vehicle to avoid issues like this in the future. I always require the seller or buyer to produce identification as well. Some peeps buy used and then resell without registering, and you can have the government coming back to you for property taxes on a vehicle you no longer own.
Yeah lesson learned on the Bill of Sale, for sure.

It's legal, it at least it was legal, to "jump" the title where I used to live in Alabama. No so here in Ohio. But that didn't happen in this case fortunately.
 

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Ohio does that on pretty much every title transfer. I got the letter after giving my nephew my late father's car. They wanted taxes even though I had driven to Ohio and transferred the car in person and told the title clerk it was a gift. Still got the surprise letter 6 months later. Provided proof as executor I had the permission from my sister to give him the car. As long as you provide that they leave you alone.
 

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Discussion Starter · #20 ·
Ohio does that on pretty much every title transfer. I got the letter after giving my nephew my late father's car. They wanted taxes even though I had driven to Ohio and transferred the car in person and told the title clerk it was a gift. Still got the surprise letter 6 months later. Provided proof as executor I had the permission from my sister to give him the car. As long as you provide that they leave you alone.
Good to know. Thank you!
 
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