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Unpaid taxes on vehicle (small claims?)

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Speschl88

Junior Member
What is the name of your state? Colorado

I recently purchased a motorcycle in Colorado. I financed it through the bank and "they" handled all the title work. Apparently, the second owner of the morotcycle never titled it in his name (it was signed over to him) so the tranferred title from the first owner to the second owner then to me (3rd party). The bank did not flip over the title to examine it. (Their fault) They cut him a check and he was on his way.

2nd Part: Since the second owner did not title it in his name he did not pay taxes on the vehicle. I called him along with my bank and asked him to pay taxes. He fought with us until the previous dealer who sold it too him (it was on consignment) verified that he never paid taxes. After numerous phone calls from me and my bank. The bank also sent him emails demanding he pay taxes on the bike. They also needed a signed power of attroney to pay the taxes under his name and then tranfer title over to me.

After 60 days of arguments he claimed he paid them and mailed it to the bank 2 weeks ago. (Not sure how he did this without the title that my bank has).They still have not recieved the paperwork proving he paid the taxes. We are not sure how he could of paid the taxes without the title. Also the taxes are dictated by the county so we do not know where he claimed to pay the taxes or the amount. I cannot verify this either. He refuses to take my phone calls and told me to speak with his attorney because of my banks threatening emails. Is this a small claim court issue? Can I hire an attorney to on a retainer (or paying him based on the winning the case) so I do not have to front the money?

Here's what needs to be satsified;
1) Unpaid Taxes
2) Power of attorney so the bank can tranfer title from him to me.

Thanks for the advice.
 


msiron

Member
It appears as though in Colorado the dealer who sold the 2nd party the bike was suppose to collect the sales tax.
Authorized licensed dealers are responsible to collect all or part of the appropriate sales tax due at the time of purchase but, depending upon where you purchased your vehicle, some or all of these taxes may be due at the time of registration.

License plate fees and ownership taxes (personal property taxes) will be collected when you register your vehicle with your local Denver Motor Vehicle office.
SJ I think they will not title the bike to OP until it goes through proper channels of titling to the 2nd owner, then to OP.
 

Speschl88

Junior Member
The original owner (1st Owner) purchased in Seattle Wahington, It was on consignment in Idaho sold to (2nd owner) who lived in Colorado. Bike was shipped to Colorado. (2nd owner) did not regsiter it and the dealer it was on consignment with in Idaho "by law" is not allowed to collect taxes on out-of-state purchaser as verified by the dealer. The bike was sold to my bank with a washington title from the 2nd owner to me and my bank. Since the (2nd owner) did not register it here taxes were never paid.

I need the taxes to get paid and get the bike properly titled over to me, because he has been paid for the vehicle but he needs to sign a power of attroney over to my bank so they may correctly title it. But (2nd owner) claims he did this but no one has a record of it and he will not furnish one to me.

I verified each previous owner and the dealer identified it and the bike is not stolen.
 

Zigner

Senior Member, Non-Attorney
The original owner (1st Owner) purchased in Seattle Wahington, It was on consignment in Idaho sold to (2nd owner) who lived in Colorado. Bike was shipped to Colorado. (2nd owner) did not regsiter it and the dealer it was on consignment with in Idaho "by law" is not allowed to collect taxes on out-of-state purchaser as verified by the dealer. The bike was sold to my bank with a washington title from the 2nd owner to me and my bank. Since the (2nd owner) did not register it here taxes were never paid.

I need the taxes to get paid and get the bike properly titled over to me, because he has been paid for the vehicle but he needs to sign a power of attroney over to my bank so they may correctly title it. But (2nd owner) claims he did this but no one has a record of it and he will not furnish one to me.

I verified each previous owner and the dealer identified it and the bike is not stolen.
Pay the tax then go after the 2nd owner for reimbursement.
 

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