Basic Kit

[Bill D]

If I buy just the basic kit, can I buy the rest of the parts as I go and funds become available?

Thanks

[aks801]

I'm sure someone more knowledgable than I will answer (maybe even a Weaver!), but I think you can do that. Unique does publish an options list, and everything that is included in the DPK is available as a published option with a price.

Good luck!

[weaver]

I would at least buy a basic kit with suspension, a roller is cheaper to ship that a crated kit, plus suspensions are expensive to ship later.

[Bill D]

Thanks Mr. Weaver. I'll have to wait a wee bit longer. I have a spreadsheet with all the parts I'll need. I'm looking forward to putting a deposit down later this year

[robbinsshkr]

It sure is nice to return back home from Abalama with the DPK, but i have wondered if purchasing a base kit would have its advantages when it came time to license it??? I assume the bill of sale needs to be taken to the BMV to show the origin and purchase price of the car. the check to the BMV would be smaller on a basic kit verses a DPK or turnkey. Is the sales tax based on a value placed on a finished car, the price of the items purchased out of state [no sales tax included] or ? I have always been told that there is no sales tax on labor, just the materials used. at least thats my understanding for Indiana.

Alan, the total price for the product you sell includes your labor as well as materials, overhead, profit, etc. Is there a way a buyer can remove the labor portion of the purchase price when it comes time to pay sales tax?
Of course I am asking this as a hypothetical question as I wouldnt want to avoid paying any taxes. That being said, i guess a person pays sales tax on the labor portion on a new store bought vehicle too. I just didn't know if it would be any different on a home built.

[TurnpikeBoy]

Do NOT be messin' with the tax man. They have loooong memories and many, many tools with which to whack you around the head and legs. Be honest, be complete, and just pay the b*st*rds their due.

35++ years ago I had a car, bought in Indiana, that I turned into a race car back in Jersey. I originally registered the car, told the tax man it cost half what it did. Two years later I get a letter telling me that the value of the car was twice what I paid on, and to cough up the extra tax or they'd pull the registration.

I ignored it....hey, the car was a race car now, who cares if they pull the registration? 'Cept they then sent the county sheriff around to impound the car for taxes due. They got their money.

Bad bizness to mess with the tax man. All that crap about legal to avoid but illegal to evade? - yeah, true, but then he only sees the bottom line and pursues that.

[Aggressor]

I agree. When I registered my Unique cars in PA I sent 100% of the taxes due. Along with the require paperwork, I prepared two neat piles of all my receipts stapled together. Attached to each pile was a statement of the total and the amount of PA taxes due on the untaxed pile. It's just not worth the effort to try and shave off a few hundred bucks. The are too many horror stories of registrations in limbo forever over taxes or major components that have no receipts and could be stolen property. If PA senses that you're trying to weasle them out of a few of their dollars it becomes a bad experience.

Our registrations breeze through and are back in a relatively quick three week turnaround.

-Geary

[robbinsshkr]

there is no doubt that you guys are right and i honestly would not chance something so small in comparison to what has already been invested dollar-wise. in the example given, your stated value was different [1/2] of their thoughts on the value. thats the part i'm curious about.... is the value based on their opinion? i wouldn't think they would have a blue book on home builts? you mentioned items with no receipts could appear stolen in their eyes. a lot of guys have engines / trans for their cars that have been tucked back in a corner for years, but no paper trail. i guess all the items fro jegs / summit and the local parts store have already had sales taxes taken out so they are a non issue, right ? or do they get added into the price of the build and the taxes due at the bmv a total of all gross receipts. i'm not arguing anything you have said, as i know you are right, and i know the right thing to do and that is what will be done. i just didn't know what all was included in how they determine the value, actual receipts or their estimated value. lets hope the lady at the BMV didn't watch Barrett Jackson the night before and see a 65 cobra sell for $600,000 .

[Brent]

I picked up the paperwork at the dmv for the sheriff's inspection. He came to the house, he was there 5 minutes, charged me 5 dollars, and left. Less than 10 minutes total. I took that with my unique paperwork to the liscense branch and was in and out in less than 20 minutes. The car never went to the liscense branch. In Indiana we have no inspections to worry about or pass. When my car was sold and went to CT. the new owner had a hell of a time. Pipes way too loud, small rear seal leak, adjustment of parking brake, etc. He ended up stuffing the sidepipes full of steel wool and holding it in with an inverted cone screwed in the end of the pipe. After he passed he removed the cone and blew all of the wteel wool out.

Eddie you won't have a problem in good ole Indiana.

[Aggressor]

PA did not consider projected street value but only was looking for the portion of sales tax on the total package that not paid through PA taxed purchases. You own and pay tax on dollar for dollar value of the pile of parts and services you payed for. The increased street value is what you create with those parts and services. The sweat value.

-Geary

[brfutbrian]

when i built and registered my car 2001 i had reciepts for every nut and bolt. when the sales tax was determined i was only asked for the paperwork for the roller. they didnt ask for anything more and i didnt question it. but i wouldnt try to hide anything, it just isnt worth the grief. later, brian.

[diegokid]

In MS I had to pay the taxes on the DPK but the title is as a 65 car so next year I can get a Antique tag for free or keep my vanity plate for about $50.00 a year.

[robbinsshkr]

Thank you all for the interesting replies and personal examples. Taxes are due when you bring an untaxed purchase back to your home state, that is clear and understandable. I don't want to open up a can of worms, but something that isn't quite as understandable is how the same item is taxed as many times as it is sold, even when sold within the same state. If a cobra or any auto for that matter changes hands three times, being sold for $40,000 each time, thats a generous amount of sales tax revenue generated each time on the same car. I guess thats just the way it is with taxes. they don't ask you to like it, just pay'm. At least Indiana doesn't have a luxery tax like some states.[I don't think] Anyway, thank you all again!
Eddie

[diegokid]

Kinda like land taxes, a real example of windfall profits for the state. Pay tax on property when you buy it then pay the state taxes every year just for the right to keep what you have already payed for once!

[Aggressor]

For kicks try to figure out how many times your income is taxed. From the time you earn it, tax losses through capital gains, taxible interest, .........

We should consider going Amish. Here in PA the Amish horse drawn wagons,farm equipment, and buggys do tens of thousands of dollars in "rutting" damage to PA roads in just Lancaster County. I have never heard the figure for statewide but consider that they pay no road tax. As I understand nor income tax, nor state tax, nor local taxes ??????
We are taxed to pay for their tax-free sorry-butts buggy-rutting our roads.

Yeah maybe I'll convert.
Ah think of it ... Me and the Mrs ....livin the simple life ....with our 16 kids working the farm.


-Geary

[Slither]

At least Indiana doesn't have a luxery tax like some states.[I don't think] Anyway, thank you all again!
Eddie

Oh but they do!... I'm sure Brent can set you straight on it...

Glad I don't pay that tax anymore!

[robbinsshkr]

I figured I better add the "I don't think" when I spoke of IN not having a luxery tax. I can see Brent having a full understanding of a luxery tax with the business he is in. His product is a perfect example of what luxery is.
Not wanting to turn the original thread in to my own personal tax lesson, but what determines when a luxery tax is to be applied, a certain dollar amount on anything that isn't a necessity or is the tax imposed on a particular catagory's such as boats, RV's and airplanes? I appreciate the correction to what I had assumed. I'll refrase my original statement a bit............"I have never purchased anything in IN that qualified to have a luxery tax"

Aggressor......16 kids??????, I think I would just prefer to pay the tax. LOL

[Jerry Cowing]

I don't know if you picked up on what Aggressor said: PA did not consider projected street value but only was looking for the portion of sales tax on the total package that not paid through PA taxed purchases. You own and pay tax on dollar for dollar value of the pile of parts and services you payed for. The increased street value is what you create with those parts and services. The sweat value.
-Geary

What Geary subtly said: Remember, you only pay taxes on the parts you have NOT already paid taxes on, not the value in your estimation of the completed car. In other words, if you bought an engine and paid taxes on it, you don't include this costs of parts when you register the car and in essence pay taxes on these parts again (double taxation). When you repair or upgrade your car/truck, do you go to the DMV and re-register it to include the new parts or sterio upgrades, etc.? No. So keep records on your purchases to prove you already paid taxes on the purchases. Don't include these parts costs when you register your car.

[JeepSnake]

Not jumping on the tax bandwagon, but using the discussion as an opportunity to make a suggestion.

As you build your car, put everything - and I mean everything - into 3-ring binders (e.g. cam card, ignition system installation literature, alternator paperwork, oil cooler paperwork, etc.). Think of it this way: an OEM provides an owner's manual. On this car, YOU are the OEM. Thus, you need to build your own owner's manual for the car.

In addition to the binder containing the paperwork that comes with each part you purchase, also put together an Excel file listing every single part, the part number, the brand name, the supplier, price, and comments. Also list alternate part numbers (e.g. on a spark plug, list the AC number, the Champion number, the Autolite number, the Bosch number, etc.). You can break the list up into individual worksheets for different systems in the car. Doing this provides you with several things. First, you keep a print copy of this sheet in the binder. Second, you keep a copy of this sheet in the car, in case you need a part on the road. Last, you can provide this file to your insurance company when you are trying to settle on agreed value for your insurance policy.

I used this method restoring the Chevelle, and it worked great - especially when it came time for insurance. I'm in the process of developing the spreadsheet list for the Cobra now.

[Bill D]

WOW, This thread sure got hijacked