Recordkeeping for Motor Vehicle Sales

Retailers that sell or lease motor vehicles

Your records for selling or leasing motor vehicles must be the same as any retailer.

Note You’re considered a dealer if you sell or lease more than five motor vehicles in a calendar year. See the Motor Vehicles – Dealers guide for more information about records you should keep.

Businesses that sell or transfer a motor vehicle to a related party

Document the sale or transfer. Your records should include all of the following:

Date of sale or transfer
Sales price of the motor vehicle
How the parties are related
Registration and title documents showing whether you paid tax when you bought the vehicle
If the sale is exempt, complete Form ST-133CATS – Sales Tax Exemption Certificate – Capital Asset Transfer Affidavit and Instructions.
(See requirements for exempt related-party sales and transfers.)

Individuals that sell a motor vehicle to a nonfamily member

Document the sale. Your records should include all of the following:

Date of sale
Identifying information about the motor vehicle (e.g., vehicle identification number, or VIN)
Sales price of the motor vehicle
Copies of sale documents

Note

If you hold yourself out as a seller and make one or more sales of motor vehicles or anything else in a year, you’re a Retailer. See Retailers.
If you sell five or more motor vehicles in a calendar year, you must apply for a dealer’s license. See Motor Vehicles – Dealers.

Individuals that sell a motor vehicle to a qualifying family member

Document the sale. Your records should include all of the following:

Date of sale
Identifying information about the motor vehicle (e.g., vehicle identification number, or VIN)
Sales price of the motor vehicle
Copies of sale documents
Registration and title documents that show whether tax was paid when you bought the vehicle

Sign the “Seller’s” section of Form ST-133 – Sales Tax Exemption Certificate – Family or American Indian Sales, and give it to your relative. Your relative needs a completed copy of the form when he or she registers the motor vehicle.

Individuals that give away a motor vehicle (including to a family member)

Document the gift. Your records should include all of the following:

Date of gift
Identifying information about the motor vehicle (e.g., vehicle identification number, or VIN)
Copies of transfer documents

You and the recipient must complete and sign a Form ST-133GT – Use Tax Exemption Certificate Gift Transfer Affidavite. The recipient needs the completed form when he or she registers the motor vehicle.