Repossession by Lienholder

Repossession of a motor vehicle by the lienholder is exempt from the sales/use tax, providing a sales/use tax on the vehicle was previously paid by the debtor. If the sales/use tax has not been paid by the debtor, the exemption cannot be granted. The lienholder is required to pay the tax based upon the original purchase price.

 

The lienholder must be listed on the Certificate of Title or have a valid Security Agreement, and the tax receipt or Title must be in the debtor’s name.

 

Required documents for this exemption:

      A completed RMV-1 Form

      Affidavit of Repossession

      Proof of tax paid by the debtor

 

For more information on repossessions, please see the Repossessions section.