Abatements and Refunds

If, for any reason, the customer does not agree with the National Automobile Dealers Association clean trade-in book value of the vehicle, he/she may fill out an Application for Abatement and file this form with the Department of Revenue to apply for an abatement. The Registry of Motor Vehicles, however, will still collect the full sales tax in order to process the registration and/or Title transaction.

 

Customers may also apply for a refund of the sales/use tax paid if the vehicle was returned to the seller within 180 days from the date of sale and they received the full refund, less the seller's pre-established handling fees. Please see the Refunds for Rescissions of Sale section for more information.

 

EVR Sales Tax Refunds

An authorized Electronic Vehicle Registration (EVR) dealer or insurance agent/company may apply for a sales tax refund within three years of the transaction date for the following reasons:

      The sale of the motor vehicle or trailer was rescinded

      The customer is a tax exempt organization

      The lease was incorrectly entered as a purchase

      There were issues with the trade-in

 

To apply for sales tax abatement, the authorized EVR dealer or insurance agent/company should mail a completed Application for Abatement to the Revenue Operations Department with supporting documentation including the following:

      Copy of ST2 Tax Exempt Certificate (if applicable)

      Copy of Registration

      Copy of Bill of Sale

      Copy of RMV1 form

      Written statement signed by the purchaser acknowledging the sales tax was not paid by the purchaser or has been reimbursed by the dealer or agent.

 

If the Registry approves the abatement request, the Revenue Operations Department will mail a check for the abatement amount to the dealer or insurance agent/company.