Michigan Title Transfer Sales Tax

However, if there is a divorce of the parents before the transfer of ownership, the multi-level relationship ceases to exist and the transfer is taxable. We are constantly updating our content and welcoming your feedback. Leave us a comment and let us know what other questions you might have about how to transfer a car title in the state of Michigan. You will need a copy of the title, which will be completed by the seller and must be signed and dated. If you buy a new or used car from a dealership, the dealer will take care of the transfer of ownership, although you will have to pay the fee. You will also need to complete a DMV title transfer form. For Michigan DMV hours of operation to find the nearest DMV or for other questions regarding the transfer of a car title in the state of Michigan, visit the official website of the Michigan Department of State by clicking here. Once the seller has signed the title, you, as the buyer, can then title it, and it should be quite simple. If you waited beyond the 15-day limit, you will have to pay a $20 late fee. The request for a double title can be made at the SOS office, and you can do it by e-mail. You will need to complete a duplicate form request and indicate why you need the duplicate.

The cost is the same as for an original title. You can also do this online, and the new title will be shipped within 14 days. If the determination of the tax liability by the Department of Finance differs from the amount collected at the time of the transfer of ownership, the buyer must pay the difference plus interest and any penalties. Penalties are severe if a tax exemption claim is fraudulent. You must have a title to register a car to legally drive it in Michigan. You can try contacting the previous owner and asking them to submit a duplicate title, which can be the easiest way. If that doesn`t work, you may have to go to the estate or the courts and do it that way. When you buy or sell a car, you have 15 days from the date of sale for the title to be transferred. If you`re moving from another state, you`ll have 30 days to transfer your title to Michigan.

Check the Vehicle Identification Number (VIN) on the title with the VIN on the vehicle to make sure they match and verify that the encoder has correctly filled in all the required information. If the flags are not also forwarded to the recipient, the encoder must remove them. Michigan law allows a newly purchased vehicle without license plates to be driven directly home. The only difference is a form you fill out, and the basic cost of transferring ownership remains that you don`t have to provide proof of the relationship, but the SOS may ask, and if you can`t prove it, you could be held liable for a hefty fine. Some employees use the discount program to purchase a vehicle for a friend who will make all payments and transfer the title after the six-month period expires. A friend who paid a 6% sales tax on the original purchase must pay a 6% user tax on the retail value of the vehicle if the title is transferred six months later. If there is an estate, the executor or person with a power of attorney can act as a seller or sign as a seller and assign title to another person. Go to your local Secretary of State branch with your records within 15 days of receiving the vehicle. Ideally, the donor and recipient should go to the office together to complete the title transfer process, but it can only be completed in the presence of the recipient as long as the donor has already completed their portion of the title.

In addition to the title, the beneficiary must bring his identity document and proof of car insurance. It must be Michigan`s no-fault insurance; No non-state insurance is accepted. A new or used vehicle is one of the most exciting gifts a person can receive, and transferring the title on behalf of the new owner is an easy and relatively inexpensive process in Michigan, as long as you have all the necessary documentation. Making sure all forms are filled out correctly before you go to the Secretary of State`s office to transfer your title will minimize the time it will take you before you can fully enjoy your new car. If you apply for a tax exemption due to a family relationship, the Ministry of Finance may contact you to prove the relationship. You do not need to provide proof of relationship when processing a title application at a branch of the Secretary of State. However, if your application is selected for review by the Consolidated Revenue Fund after the transfer of title, you will need to submit documents proving the eligible relationship. Sometimes a salvage title can be acquired, and in this case, the main part of the car that remains is the car that is titled. In Michigan, auto title transfers are made through the Secretary of State`s office with various locations across the state. You must have a title to register a vehicle in order to obtain labels and drive it legally.

Although the Secretary of State levies a 6% tax on the transfer of title, the final determination of the tax due on vehicle transfers is made by the Michigan Department of the Treasury. The tax rate is 6% of the purchase price or retail value at the time of transfer, whichever is greater. Michigan charges a state sales tax rate of 6% on the purchase of all vehicles. In Michigan, you can get a title instantly at a local SOS office. If you have lost your title and need it immediately, you can get one with proof of ownership of the car and personal ID without waiting. If there are two names on the title, only one of the people must be there. Get the original title of the person giving you the vehicle. A copy of the title will not be accepted. The donor must complete and sign the part of the seller`s title, including information such as the date, the name of the recipient and the mileage of the vehicle. Pay all necessary fees. As of December 2010, the title transfer fee is $15, which can be paid in cash or by credit card. If the vehicle was handed over to you by an immediate family member such as a parent, step-parent, grandparent, sibling, child or spouse, the 6% usage tax will be waived.

All owners listed on the title must sign the title. If you make payments for an out-of-state car, you can use your out-of-state registration as proof of ownership and register your car. Joe Young buys a vehicle from his uncle (his father`s brother). Since relationships between uncles are not eligible for release, Joe must have the vehicle titled in his father`s name (brother-to-brother release) and then transfer the title to his name (father-son release). If Joe decides to transfer the title directly from his uncle to himself, a 6% tax will be due. If a car is a gift, you don`t have to pay sales or consumption tax if you`re a family member. If you need help filling out the title transfer form, you can visit a local SOS website or visit their website. You will also need to provide proof of insurance if you are at the SOS office when you get a title. You are not allowed to transfer a title in the state if there is a lien on the car – which means that payments are made.

You must have a note of release from the secured creditor. If you do not follow the immediate route, you will not have any additional charges and it will be sent to you within 15 days. There is a $20 late fee if you do not get your transferred title within the allotted time. The Michigan Department of the Treasury administers tax collection and reviews tax exemption applications filed with title applications processed at the Secretary of State`s branches. .