What if the vehicle was a gift?

If a person gives you a vehicle that has been licensed in Wyoming or another state, there is no sales tax due on the transaction. Proof must be provided that the vehicle was legally licensed or registered. A person may also purchase a vehicle, pay sales tax, and then give it to another person without sales tax being due a second time. However, if a person purchase a vehicle, does not pay sales tax, and then gives the vehicle to you, either you or the purchaser will have to pay sales tax on the original sales price. Also, a vehicle that is financed at a bank (has a lien on the title) cannot be given as a gift, since vehicle ownership is shared by the title and lien holder. In that case, the person receiving the vehicle would owe sales tax on the amount that it still owed against the vehicle. 

Show All Answers

1. What's a sales or use tax?
2. When does sales tax have to be paid?
3. How much sales tax do I pay?
4. What if I purchase a vehicle out of state?
5. What does a sales tax calculation look like?
6. Where does the sales tax money go?
7. What if the vehicle was a gift?
8. What is exempt from sales tax?
9. How do I pay sales tax on my boat?
10. Do I Pay Sales Tax on a Lease?
11. Is sales tax owed if I assume a loan?
12. Sales tax on a Lease Buy Out
13. Do I pay Sales Tax on a Mobile Home?
14. Do I owe sales tax on a Raffle?
15. Can I pay my sales tax without my title being processed?