When a person wins a vehicle through a contest, drawing, or raffle, the donor or sponsor must pay the sales/use tax. However, if the rules of the contest, drawing, or raffle specify that the winner must pay the tax, this exemption is not allowed. In that case, the winner would pay taxes based on the manufacturer's (dealer's) invoice price plus accessories.
Required documents for this exemption:
• A completed RMV-1 Form
• A completed Form MVU-21 signed by both the winner and sponsor
The name of the sponsor/donor on the MVU-21 must agree with the name on the documents showing Proof of Tax Paid.