Classic Car Restoration Shops in New York

New York taxes restoration labor along with parts, requires repair shops to register with the DMV, and issues no title at all for the oldest cars. These are the points to settle before a shop touches your car.

Sales tax on restoration work

• The Tax Department's bulletin for auto repair and body shops says most charges are taxable and the shop must collect sales tax on the total charge for parts and labor. Its example of a body repair with repainting concludes that the entire bill is taxable.
• Towing a disabled vehicle is taxable, but hauling an antique car to a car show is not. Storage charges are taxable, and a state inspection fee is not.
• Fabricating a part from customer-supplied material is also a taxable service under the Department's sales tax guide, which dates from 2015.
• The state rate is 4% plus local rates, with combined rates running from 7% to 8.875% in New York City. Take a car out of state for taxable service and bring it back for use in New York, and the Department says use tax is owed on what you paid. Its published example concerns business equipment, so confirm how it applies to a private car.

Shop registration, estimates and invoices

Any shop that repairs or diagnoses vehicle malfunctions, or repairs damaged bodies and components, for pay must register with the DMV for each location. The fee is $150 for two years plus a $10 application fee. Excluded work includes oil and tire changes, polishing and washing, and upholstery, and whether a restoration-only specialty shop must register is not spelled out. An unregistered shop faces a $1,000 civil penalty, and a shop that was not registered when your car came in cannot enforce a lien sale on it.

• On request the shop must give a written estimate of parts and labor, and it may not charge more than the estimate without your consent. It may charge a reasonable fee for the estimate, no more than its labor charge by clock hours or one dollar, whichever is greater. There is no dollar threshold.
• It may perform only the work you authorized, and must give you an itemized invoice showing parts, labor, odometer readings, guarantee terms and its registration number.
• It must return replaced parts if you demand them in writing before work begins.
• It may not charge for storage unless it gave you written notice, and a notice period applies after it tells you the car is ready.
• Complaints go to the DMV within 90 days or 3,000 miles of the repair, whichever comes first.

Titling a project car

New York issues no title for a vehicle of model year 1972 or older. For those cars the transferable registration, marked transferable on its face and signed by the seller, is the proof of ownership. If the seller cannot provide one, the DMV issues only a non-transferable registration, so contact the DMV before buying. Cars of model year 1973 and newer must be titled for a $50 fee, and the seller must hold the title in the seller's name. Homemade and kit vehicles are evaluated by the DMV for safe highway use before registration. A salvage brand is applied only to vehicles 8 model years old or newer, but the damage disclosure on a title is required regardless of age.

Inspections and emissions

Passenger cars need a safety inspection every 12 months, and the DMV lists no exemption for older vehicles. The emissions test is waived for vehicles more than 25 model years old and for vehicles issued historical plates.

Historical plates

Historical plates are for cars manufactured more than 25 years before the current calendar year. The car may be used only as a collector's item or exhibition piece, not for daily transportation. Registration is optional and valid for one year. A classic registered normally has no such use limit. The insurance ID card must show the word HISTORICAL.

Unpaid bills and cars left at the shop

To sell a car for unpaid repair, storage or towing, a garageperson must serve the owner and any known lienholder with a notice of lien and sale, advertise the sale once a week for two weeks, and sell at public auction. The first ad must run at least 10 days after service, and the car cannot be sold until 15 days after the first ad.

Rust

The Thruway Authority alone averages 176,544 tons of rock salt a year, so expect corrosion in cars that were driven there through winter.