[Dr K]

My mother is signing her (currently NY State) automobile over to me for insurance purposes (she cannot currently drive, but my sister and I drive the car when in NY). We plan to license it and insure it in Maryland. The car is 8 years old. Maryland law exempts from sales taxes transfer to a close family member but only if the care is already registered in Maryland. They require a notarized bill of sale if for less than the NADA price only on cars <7 years old. So we will have to pay sales tax on the "purchase price." Since there will really be no change in the use of the car, the price is unimportant and she would be happy to "give" me the car but we're afraid if the purchase price is $10 or something very low, DMV will balk and revert to blue book pricing. The car is worth $16-17K currently, and has only 56K miles.

How low can we value the sale that DMV will accept the value and charge their 6% sales tax on that value and not on some higher value? I will have a signed bill of sale and, or course, the title.

Thanks in advance.

Peter

[HoodPin]

I'm not sure how often MVA checks the book value, but I'm guessing its pretty easy to do nowadays electronically by the VIN.

I would suggest use a bill of sale that reflects a reasonable "as is" amount, and say the price is based upon needed engine work, tires, etc. Worst case scenario is they decide to use the NADA value anyway, so IMHO a known, manageable risk.

[John Hallen]

Hopefully Mr. Goodhands will chime in, him being an expert on insurance matters. Seems to me change the policy to reflect that your mother does not drive the car, and that you and your sister do so only infrequently. Give them estimated annual milage. Most jurisdictions require where the car is kept to be registered there.

[matt de maria]

I have personally seen where they have refused to acknowledge proper bills of sale and resorted to the blue book. This is ultimately up to the clerk to decide whether she believes the paperwork. Try the Frederick or Hagerstown offices; they don't have as many PMS'ing clerks.

[Baywatch]

Go to MVA website and download application for gift certification. I did it with one of my cars and it worked without headache.

[Dr K]

It only works if the car was already registered in Maryland. It's currently registered in NY. It's a great feature, though, if only I could use it.

Peter

[good hands]

Definitely a DMV question and not an insurance question but most states allow a family member to gift a car to another family member with minimal taxes and fees. That being said you live in Md. and I am sure O'Malley will find some way to screw you to make some money for the state.

[Chopper Dropper]

Dr. K use your Curry's gift cards to pay for the few $$
Dirk

[Elfer]

Originally Posted by good hands

Definitely a DMV question and not an insurance question but most states allow a family member to gift a car to another family member with minimal taxes and fees. That being said you live in Md. and I am sure O'Malley will find some way to screw you to make some money for the state.

We need a 'like' button on dorkiphus. Can someone get on that?

[Patrick3000]

Originally Posted by matt de maria

I have personally seen where they have refused to acknowledge proper bills of sale and resorted to the blue book. This is ultimately up to the clerk to decide whether she believes the paperwork. Try the Frederick or Hagerstown offices; they don't have as many PMS'ing clerks.

x2

Westminster is very good as well BTW does your mothers engine need lots of work? Nothing will devalue a car faster than a bad motor