sales tax

[superdad]

Thanks for taking the time to look at this.
In 2000 I bought a waverunner and got a loan through a bank.
The bank gave me a check for 5000 and I then gave that to the buyer to purchase the waverunner. The bank asked me to then give them the title. So I did. Idid not understanding how sales tax was suppose to be handled. I listen to the bank.
I sold the waverunner in 2000 about 4 months later. The buyer went with me to the bank and I signed my papers and then the buyer signed some paper and I thought the sale was complete.
Well may of 2001 (9 months later) I get a phone call from the buyer and was told that she could not get the waveruuner tags renewed. I found out that she walked away from the bank when without a title.
I did not pay my sales tax on the waverunner and that is why there is a confusion with the buyer getting a title in her name.
I contacted the state to see what the status was and they told me that have sent me letters about sales tax, but they a wrong address for me.
I have been doing whatever it takes to pay my taxes, but I need a title and the bank I got the loan with lost the title.
So I have to get a new title
With all that said, the buyer is now upset and may take me to court. What can she get form me? I am taking all the steps to getting this sreighten out.

 

[Michael Wechsler]

If you get everything straightened out, I'd venture to say that it would depend upon the actual damages the buyer suffered. It may not be a lot. What do you mean that the bank "lost" the title? If you get sued, you may be able to join the bank in the action. I'd think it might be wise to make it clear to the bank that it is obvious and reasonable they will be dragged into the mess if they can't produce in a timely basis.

 

[superdad]

What I mean by " the bank lost the title" is that the title I was suppose to take to license the waverunner was the title the bank had me bring to them. I no longer bank with them and the loan officer is no longer there. So they are telling me that have nothing to do with it now.
I had no idea that the buyer walked out without no title, or I would have dealt with the issue then.
I'm not sure what to expect from court if we go there, and I did received the threat from her, but only after I would not agree to sign illegal sale receipt stateing I sold it to her for less than I did so the buyer could save or taxes. I'm not sure how much trouble I'm in. Should I worry much about court, or just get it done as soon as I can? Crazy stuff uhh.

 

[Michael Wechsler]

Originally posted by superdad:
What I mean by " the bank lost the title" is that the title I was suppose to take to license the waverunner was the title the bank had me bring to them. I no longer bank with them and the loan officer is no longer there. So they are telling me that have nothing to do with it now.
I had no idea that the buyer walked out without no title, or I would have dealt with the issue then.
I'm not sure what to expect from court if we go there, and I did received the threat from her, but only after I would not agree to sign illegal sale receipt stateing I sold it to her for less than I did so the buyer could save or taxes. I'm not sure how much trouble I'm in. Should I worry much about court, or just get it done as soon as I can? Crazy stuff uhh.

If the title is a piece of paper certifying ownership then there must be a way of getting a new one. However, if the bank ever had custody of the title, they are reponsible for it. There is no way around that, so it would seem.

I would get things done as soon as possible and would think that court is unlikely. What would she be suing you for? Breach of contract? Possibly, but it would probably be very expensive. Many threats of suit never go to court and were never intended to go there. Can't tell you how serious the other person is but remember, there are costs involved.

 

[superdad]

Just wanted to give you and FYI on this situation.
The buyer contacted the state title office and they (the state) have an investigation department. I was contacted and questioned. I told them I am working on this as fast as I can. They will send me a letter stating everything I told them on the phone so I can sign it to prove I am doing something.
So a lesson learned. Just another story for the diary.
Thanks for all your advice.

 

[Michael Wechsler]

You're welcome. I'm glad that it seems to be working out for you.