Note: The DearEsq free 'ask a lawyer' site is offered as a free informational service to the public and is not intended as legal advice. Laws vary from state-to-state, and in addition every situation is unique, and relevant facts may not be known. The answer to the question posed below may not apply to in your state or to your situation. For legal advice in your state and your situation you should consult with an attorney in your state who is familiar with the rules and laws in your state.
“Do I have any recourse against a Washington state law that states I must pay sales tax on the NADA book value of a car? I paid $19,000 for the vehicle and am being taxed on a NADA value of $25,000. We have the proper seller documentation to validate the purchase price.”
The state of Washington, as do many states, uses the fair market value of the vehicle when assessing taxes. If you believe that the value of the car is less than the fair market value they are using for tax purposes, you have some ways to appeal the valuation; however, such claims are usually limited where the vehicle varies less than $2000 from the fair market value. You can learn more about auto taxes in Washington at their website: http://www.dol.wa.gov/vehicleregistration/usetax.html which also provides you with a phone number to speak with a customer service representative directly who will be able to provide you with further guidance.
