This is kind of long so bear with me please.
I recently just checked my TU report and a tax lien from the state of Illinois was placed on my report. I am aware of what this is. I am in the military and was deployed to Iraq in 07-09. While deployed I found a 1968 Mustang that I wanted to purchase, I wired my mother the money and she went and bought the car. When I came home on mid-tour leave in the middle of 08 I registered the car and paid the tax. I paid 13,500 for the car. According to the state of Illinios, a vehicle that is over 11 years old and bought or holds a fair market value of less than 15,000 dollars requires only a 25.00 tax be payed upon title/registration, this was paid.
Fast forward to Jan 2010, I am contacted by the Illinois Dept. of Rev. and told that I owe 750.00 in unpaid taxes. I contact them and am told that the car is valued 20,000+. (This is the market value for a fully restored like new model car that I have, mine is nowhere near that nice) I tell them its not even relatively close to worth that much and they tell me to get an appraisal. I go to a local car dealer and get the car appraised. It was appraised for 13,000, and I forwarded the Dept. of Rev. all requested documentation provided by the dealer that did the appraisal. After this I heard nothing back.
Fast forward to June of this year. I am contacted yet again by the Dept of Rev. stating that I now owe 1,351 dollars in taxes on this car. They tell me this has already been forwarded up the chain, and that I just needed to pay it. I sent a letter to the point of contact they gave me and never heard anything back. They told me they also had a record of the appraisal that I had sent and basically disagreed with it, and told me the car was worth 20,000+.
Now this is on my credit report as a tax lien owing 1,351 dollars. I am at a total loss. As of tonight I have emailed the Director of the Dept. of Rev. for Illinois, and also sent an email to the help desk at the Dept. Also tommorrow I am contacting my JAG (legal advice here on base) as to what course of action to take next. I fully don't intend to pay money that I honestly don't owe. Any advice on how to rectify this situation or who I should contact that I haven't already would be greatly appreciated. This doesn't belong on my credit report and I'm most definitely trying to get it removed.
I see your facts are accurate for 2011. Was the same true (regarding the $25 tax and all that) back in 2008? If this goes to court all you'd really have to do is print out this form:
http://tax.illinois.gov/taxforms/Sales/VehicleUseTax/RUT-5.pdf
Yes it was the same for 2008. So what are the odds of me getting this taken care of without having to go to court over it?