I recently moved to Massachusetts and bought a car.
According to the RMV (Registry of Motor Vehicle) site, the state collects sales tax of 6.25% on the higher value of the actual sales price or the NADA guide posted price.
My problem is that my car has had fender benders on all corners (cosmetically not very appealing); the check engine light is on, and the seller was leaving the country 3 days after the selling the car to me. So, I bought it at a price much lower than the lowest NADA price.
Will the state insist on charging me sales tax based on the NADA price?
Or, can I report the actual sale price, which is a lot lower than the NADA price and be charged sales tax based on that?
When I bought a car in California, I was told that the state will accept whatever the sales price the seller and buyer claim and charge sales tax according to that figure. The state knows people are lying, but it will prevent people like me getting screwed over by the state.