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 The purchaser of a motor vehicle may be entitled to a sales/use tax refund when a sale is rescinded.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
• Copy of registration showing amount of sales tax paid
• 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.