SALES/USE
TAX
The
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.
Sales/use
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.
If
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.
Upon
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.
Active
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
military identification.
An
act of donation means that no money, property, services or any other
valuable consideration is exchanged for a motor vehicle.
An
"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.
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