The Expert Podcast

Very frequently The question comes up about car taxes and what taxes have to be paid on a car to get a title. If the vehicle is being transferred to another person that's typically a trigger for taxes due when it is appropriate in that state. And it sometimes depends if the private sale or a dealer sale whether or not taxes are due And sometimes it depends if it's a newer used vehicle. In some states They also have a property tax or an ad valorem tax which is due every year for ownership of that vehicle. Be aware that in many cases the sales tax that you're aware of at a property transfer is actually a sales and use tax meaning that not just the sale of the vehicle triggers it but any use of the vehicle. One of the things that will make a determination of this is the statutes for that state And depending on if it's newer use or dealer. Be aware that the transfer of a vehicle whether or not it's done in changing title is a triggering event. So if you jump title or skip titles There may be taxes due for each one of those transfers and who's liable for it It might be the new owner It might be prior owners that's between the different people on the car but a transfer of a vehicle Even if a new title wasn't issued Might trigger sales tax being due to somebody. So if you're jumping titles or skipping titles understand that there's maybe a tax that comes back to haunt you for an unpaid tax down the road.