Here's the short of it...

My Dad is giving me a car for free. I don't wanna pay any more taxes than I have to.

Should I do a bill of sale for 1$ or should he just sign the title over?

Anyone gone through this before? All helpful feedback appreciated.

6/5/2010 7:31:24 AM

Quote :

"North Carolina collects a 3% Highway Use Tax on vehicles in lieu of a state sales tax (General Statute 105-187.2). The tax is assessed each time a title is transferred. The maximum tax for commercial vehicles (vehicles with a weight greater than 26,000 pounds) is $1,000.00. All other vehicles are charged 3% with no ceiling. [...] Vehicles purchased from anyone other than a dealer must pay a 3% tax based on the vehicle's value according to a value table maintained by the North Carolina Division of Motor Vehicles."

http://www.ncdot.org/dmv/vehicle_services/registrationtitling/taxHighwayUse.html
http://www.ncdot.org/dmv/vehicle_services/registrationtitling/howtoregister.html

6/5/2010 7:39:05 AM

what ^ said



[Edited on June 5, 2010 at 7:41 AM. Reason : sigh....]

6/5/2010 7:39:55 AM

I was wondering just what the law was myself. When I moved a title from my dad's name to my own 3 years ago they asked what the purchase price was of the vehicle or if it were a gift. It was a gift so I paid no tax on it. I just bought another vehicle and they didn't ask what the purchase price of it was. They must just have like a book price for every vehicle that they consult now. And I don't know if you can tell them it was a gift and you paid nothing for it.

I would like to find out though because my wife's car is still in her dad's name and I'd like to get it transferred but I wanted to figure out if you could still tell them it was a gift.

6/5/2010 7:49:55 AM

for any normal vehicle sale when you apply for a title you'll pay the 3% HUT tax as others have said, and the value is based on book value.

however there are exceptions to this listed here

http://www.ncdot.org/dmv/vehicle_services/registrationtitling/taxHighwayUse.html#HUTExemptions

including

Quote :

"If the vehicle is a gift between a husband and wife, a parent and child or a stepparent and a stepchild. This exemption does not include out of state title transactions, only North Carolina title transactions apply. "

So to answer TragicNature's question, as long as the vehicle was last titled in NC you will pay normal fees but no tax as long as you make it clear it was a gift from your dad.

6/5/2010 12:03:15 PM

^ did that. worked.

6/7/2010 5:48:43 PM

This is urban myth or meme? Should I do a bill of sale for 1$ or should he just sign the title over?

6/7/2010 6:29:51 PM

did you not read the thread?

6/7/2010 6:34:35 PM

Did this last year. My dad wrote a letter to take when I went to the DMV, they didn't even care to look at it once I told them he gave it to me. No taxes paid

6/7/2010 9:44:57 PM

http://www.ncdot.org/dmv/forms/vehicleregistration/download/MVR613.pdf

ahem

6/7/2010 11:21:57 PM