"We buy a $ 500 junker, put lots of parts on it that we pay sales tax on (for the most part) then we supply our talents and labor to it for X number of years and this car now becomes a work of art that is worth $ 30,000.00 (to pick a number) Now they want us to pay tax AGAIN on that inflated figure.:eek::mad:"
Same deal here in Ontario. Any vehicle more than 25 years old must have an appraisal at the time of registration (or change) and sales tax is determined on that amount. The only way to avoid this is to have the appraisal done at the time you pick up the $500 junker and get the vehicle registered as "non-operating." Then tax is paid on the $500 (or appraised value) at that time and when you finally put the car on the road it is only necessary to have it safetied. Unfortunately many builders forget or neglect this first step and receive a big shock when they finish the car and are taxed on the $30,000 value. Not sure if that procedure is available in other jurisdictions.