––––––––––––––––––––
Subscribe to the Legal News!
https://legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available
- Posted January 21, 2015
- Tweet This | Share on Facebook
Michigan may be losing taxes in used vehicle sales, according to audit
By Ed White
Associated Press
DETROIT (AP) - State auditors kicked the tires on used car sales and found Michigan could be missing out on millions of dollars in taxes by not looking harder at the value of the vehicles.
Car buyers must report the sales price when they register it with the Secretary of State. There's a 6 percent tax on the price or the value of the vehicle, whichever is higher. Vehicle transfers between family members typically are exempt.
State auditors last week said they studied a sample of April car deals between private parties and found many vehicles appeared to be undervalued.
"We estimated that the department could have collected additional use tax revenue ranging from $9.2 million to $36.5 million per year if it strengthened its procedures for verifying" values, the audit said.
Secretary of State spokesman Fred Woodhams said it's up to Michigan's tax agency, the Treasury Department, to later determine if a sales price or value doesn't appear reasonable.
"We don't inspect the vehicle for damage or how the mechanical parts are operating," Woodhams said. "It doesn't make sense for staff at the counter to ascertain the value. We accept the sale price as reported."
Spokesman Terry Stanton said he's barred by law from disclosing how often the Treasury Department challenges a used car deal. He said the department relies on the Secretary of State to flag a sale that looks fishy.
"We do not have staff whose sole responsibility is checking this documentation. ... We are working with (the Secretary of State) to develop a process that would better ensure appropriate collection of use tax on such sales," Stanton said.
Published: Wed, Jan 21, 2015
headlines Oakland County
headlines National
- This Los Angeles lawyer found her calling as a death doula
- ACLU and BigLaw firm use ‘Orange is the New Black’ in hashtag effort to promote NY jail reform
- Artificial intelligence tools for brief writing and analysis are a small firm litigator’s new best friend
- Baker McKenzie partner drops suit seeking IRS documents on partnership scrutiny
- Family members sue networks after learning of loved ones’ deaths by seeing bodies on TV
- Ex-BigLaw attorney once ‘consumed with remorse’ over $10M client theft sentenced in new scheme