Refunds for Recissions of Sale

When the sale of a vehicle is cancelled after the Title has been applied for, this is considered a withdrawal or rescission of sale. The purchaser of a motor vehicle may be entitled to a sales/use tax refund when a sale is rescinded. The purchase price must be refunded in full, less any pre-established handling fee, and the motor vehicle must be returned within 180 days from the date of purchase. If the vehicle was purchased from a dealer, the dealer should initiate this request and also ensure that the sales/use tax is returned to the purchaser, if applicable.

 

The following must be submitted to the Department of Revenue:

      A completed RMV-1 Form

      Application for Abatement

      Copy of registration showing amount of sales tax paid

      Completed Affidavit — Rescission of Sale of a Motor Vehicle

      Bill of Sale from vehicle purchase

      Written evidence that any deposit or down payment has been returned to the purchaser

      A written statement from the purchaser acknowledging that the sales/use tax monies were not paid by the purchaser or that the purchaser was reimbursed by the dealer for the sales/use tax

 

Acceptable forms of evidence that the deposit or down payment has been returned to the purchaser include:

      Cancelled check from dealer to purchaser

      Receipt from dealer to purchaser

      A signed affidavit from the purchaser, stating that he/she received the deposit or down payment back from the dealer

 

For more information on Dealer Withdrawals of Sales, please see the Cancelled Sales of New Vehicles/Withdrawals of Applications section.