Know anyone that holds a state license to sell cars? Here in IL, any licensed dealer can give you a current wholesale value of the vehicle in question. If the state licensed dealer signs the paper stating the car has $$$ value wholesale, the state has to accept that value. That value has to be within reason of the average similar vehicle value (or the paper states why it is low), but that number could be considerably less then the states numbers. You probably end up paying more money for tax, but it may be far less then the State is demanding.

I've arrived at the point where I get that wholesale value from my friend that owns a used car dealership here in town every time I buy an old car. I pay the tax due on that amount right up front, but its always before I invest much money, or done any work. I figure that wholesale value tax is part of the purchase price. If I got a great deal on the vehicle, even with the higher taxes, its still a great price. The state is happy, and I don't have any problems.

Get a wholesale value from a dealer on the car as it sits now, and pay the taxes. You have just paid for your education, buy the next one with more knowledge.

The days of buying (and selling) parts on line without paying sales tax are about over. The states want the money they think they should have coming. You may get by with a few small parts here or there, but any big ticket items are now pretty questionable. If you tell the state the car you bought cheap doesn't have a motor, and suddenly your driving the car around, the states wants to be sure you paid them tax on that motor you bought, and they want to be sure the guy you paid the tax to, sent the money to the state. Its only going to get worse. Gene