Donation of Vehicle to Family Member (Or otherwise)

Good News !!!! Louisiana Policy 52.00 Act of Donation / Manual Gift states that no sales or use tax is required if the Act of donation entails "no assumption of mortgage is occurring".

Most importantly, Policy 52.00 makes NO mention of familial relationship requirement or otherwise.

So, for the Act of Donation, it is a simple form that lists the Donor, Donee, vehicle information, etc. The form should be signed by both parties and two witnesses, all in front of a notary.

NOTE: Even though the form requires you to fill out an approximate value of the vehicle, and state the relationship of the parties - Policy 52.00 requires no sales & use tax to be collected.

Policy 52.00 Act of Donation / Manual Gift

Section: 4. Motor Vehicle Registration Requirements

Effective Date: 05/01/1986

Revised Date: 08/04/2021

Authority: Civil Code 1543 Civil Code 1550 LA Department of Revenue

Objective: This policy outlines the required documents needed in the event a title will be transferred with an Act of Donation or Manual Gift form.

Definitions:

Donation - An authentic act executed before a notary in the presence of two witnesses transferring the ownership of a

vehicle with no monetary exchange

Manual Gift - A transfer of property made by delivery of the property to the Donee without any other formality (1)

Eligibility:

Applicants are eligible to apply for a vehicle title and registration, if they meet the requirements for processing the transaction (i.e. provides required documentation, etc.).

General:

A - Sales/use tax is due on the following transaction:

1. Outstanding principal when assuming a mortgage unless being assumed by a spouse

B - Sales/use tax is not due on the following transactions:

1. Act of donation, where no assumption of mortgage is occurring

2. Transfer by an affidavit of heirship

3. Transfer by a divorce decree

4. Transfer by a judgment of possession

Manual Gift: A donation of a vehicle by manual gift will only be acceptable if submitted to the Office of Motor Vehicles in connection with a motor vehicle transaction by a Louisiana Motor Vehicle Commission licensee.

Required Documentation:

·       Vehicle Application Form (DPSMV1799), completed and signed by Donee

·       Current certificate of title assigned before a notary by the donor to Donee

·       Act of Donation form (DPSMV1699), if applicable, completed in its entirety and notarized

·       If a lien is recorded on the title, the lien must be properly released.

·       Proof of UCC-1 or other security agreement, if a lien is to be recorded

·       Proof of current liability insurance coverage, if a license plate is to be issued

·       A copy of owner’s driver’s license or identification card issued by this state or another state,

if a license plate is to be issued.

Fees:

·       $68.50 Title fee

·       $8.00 Handling fee

·       License plate/transfer fee, if applicable

·       $10.00 lien recordation fee, if a security agreement is submitted

·       $15.00 lien recordation fee, if a UCC-1 filing is submitted

·       Sales/Use tax, if applicable

Related Policies:

Section 4, Policy 2.00 Basic Requirements For Obtaining A Certificate Of Title

Section 4, Policy 37.00 Transfer Of Equity Or Sale With Assumption Of Mortgage Or Security Agreement

Section 4, Policy 47.00 Sales Tax On Vehicle Transfers Section 4, Policy 47.01 Trade-Ins

Section 4, Policy 47.02 Criteria Necessary to Qualify as a Trade-In Section 4, Policy 74.00 Property Settlements

Section 4, Policy 80.00 Required Odometer Statements

References:

1 – Louisiana State Legislature. Manual Gift (CC 1543),retrieved from https://legis.la.gov/Legis/Law.aspx?d=108866