Office of Motor Vehicles will collect sales/use tax on all transfers
of new and used motor vehicles based on 75% of the NADA (National
Automobile Dealers Association) retail value or the actual sales
amount, whichever is greater.
tax can be assessed on a an amount lower than the fair market value
if the vehicle has sustained major mechanical or body damage. Documentation
regarding this must be presented along with the file.
a vehicle is purchased through a dealer, the sales tax is based
on the total selling price, including any shipping or dealer prep
fees less the trade-in (trade-in must be in seller's name and registered
in Louisiana) or rebates, if any.
moving to Louisiana new residents must register their vehicles immediately
and are subject to the payment of a use tax based on the fair market
value. A maximum of 4% credit may be allowed for a similar tax paid
in another state against taxes due in Louisiana provided Louisiana
has a reciprocal agreement with that state. Proof of payment of
tax may be required.
duty military personnel entering Louisiana may register and title
their vehicle without payment of sales/use tax. Proof must be furnished
that sales tax was paid in another state, along with a copy of their
act of donation means that no money, property, services or any other
valuable consideration is exchanged for a motor vehicle.
"act of donation" can be executed whenever a close family
relationship exists between transacting parties and situations involving
heirship, successions or divorced or legally separated spouses.
An act of donation can also be made to a "bona fide" charitable
or religious organization.