I don't know where Ted got that. Zippy explained the situation in his OP just fine. He didn't undervalue his car, he got taxed on the improvements he made to the car. Maybe if the government didn't think it was entitled to vigorish every time money changed hands?

At this point I am just glad to make it go away and be done with the whole thing.

They can have it.

As upset as I initially was, it's to the point now where the loss isn't really noticeable anymore.

A little time can make a big, big difference.

being a small business owner, last year I was notified that I had to pay an additional "personal property tax" on business equipment, HUH ??? I gave it my tax guy, his bill was more that theirs Anybody up for a tea party