have you ever bought an item that the taxes are more than the purchase price?

[mom-from-missouri]

I am friends with an elderly gentleman (in his mid 90's) who bought a car brand new in the spring of 1943. He still drives it as his daily driver. That has been his only new vehicle he has ever owned, but when he farmed he also had an old farm truck. He told me he paid around $800 for it brand new. Through out the years, he has paid personal property tax on it, and taxes to relicense it numerous times. He is very sharp, and when it was cheaper to have it listed as a historical vehicle, he did it that way. When the law changed to say a historical vehicle had limited miles, he changed it back. For years the taxes were low because it was an old car. Now the taxes are higher because it is considered an antique worth some money. It is in mint condition. He has shown it several times and won car shows, and paid taxes on his winnings. The car is in mint condition, with polished wood on the dash. No radio, no air....

That is 67 years worth of property taxes on this car.

He also has tracked all the taxes-from the orginal sales tax, to the personal property tax, to tax on car show winnings, and the tax at the license bureu in a notebook.

Orginal price paid $800. Tax paid to date $5876. (Not to mention the road taxes, fuel taxes...)

Thats a lot of taxes......

[GrimJack]

Yep - that is 67 years of using public services paid for out of those taxes - fire police protection, all that stuff. That does seem like a lot of money - though I think the taxes on winnings might be better tracked as income but that would detract from the impact.

Hmm, 5876/800=7.345 - using the 'rule of 72', that is about 10% per year, if only we could invest that well, eh!?

[jpg7n16]

Originally Posted by mom-from-missouri

For years the taxes were low because it was an old car. Now the taxes are higher because it is considered an antique worth some money. It is in mint condition. He has shown it several times and won car shows, and paid taxes on his winnings. The car is in mint condition, with polished wood on the dash.

So he didn't actually pay that all on the car, but rather most of the taxes were on the income from winning award shows?

Poor guy. I'm sorry he made like $10-15k that he had to pay taxes of maybe $2-4k on. What rotten luck!

Plus his car you said is an 'antique worth some money.' So if he sold the car, he'd turn a profit. So he's paying higher taxes because his $800 investment is worth so much more now. If it's good enough to win awards at car shows, it's likely worth at least $30-40k - if not way more. I'd gladly pay $5k in taxes to increase the value of my car from $800 to $40,000.


This is a good example of only looking at the costs, and ignoring the benefits.

[angel snowfey]

i have no such experience.

[GREENBACK]

I can almost see myself doing something like this if I'm blessed enough to make it to his age. Paid off vehicles almost always trump any other expenses. Think of the monthly vehicle payments he's avoided over the years.

My oldest truck is a measley 13 yrs. old. I'm jealous. That old fella' should be quoting Clarlie Sheen....."winning"

[Jenniferw]

No such experience either It is possible if some thing free with rebate but you have to pay tax