Home » FAQs » Will I need to pay sales tax?
A vehicle transfer may be a taxable event. If the buyer has not paid taxes on their prior vehicle purchase, those taxes may be due prior to a title being issued. Prior transfers (jumped title) upon which taxes have not been paid may still have been taxable events. Those taxes may not be required as payable prior to a title being issued, but may still be due and liable to owners in the chain. When a title recovery or bonded title is processed, only the most current transfer is being processed and potentially creating a sales tax liability. A title recovery should not be used to evade sales tax due. Any taxes due are the responsibility of the buyer unless some other arrangement was made between the buyer and seller. A vehicle owner who uses the titling process to avoid a valid sales tax liability may be subject to penalties.
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