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.
Required documents for this exemption:
• A completed RMV-1 Form
• Proof of tax paid by the debtor
For more information on repossessions, please see the Repossessions section.