Here's how the sales tax exemption for private vehicle sales between relatives works:
1. Qualifying Relationship: The tax exemption applies when a used vehicle is sold or gifted to a relative, including parents, siblings, children, grandparents, grandchildren, and other relatives related by blood, adoption, or marriage.
2. Title and Registration: Both the seller (relative) and the buyer must be residents of South Carolina. Additionally, the vehicle must be titled and registered in South Carolina. If these conditions are met, no sales tax is charged on the purchase of the used vehicle.
3. Required Documents: To complete the sales transaction, you'll need to present the following documents to the South Carolina Department of Motor Vehicles (DMV) or a South Carolina county title and registration office:
* Vehicle title signed by the seller (relative)
* Application for vehicle registration (Form MV-1)
* Proof of residency (for both the seller and the buyer)
* Bill of sale or gift form
* Affidavit of No Sales Tax Due (Form MV-1B)
4. Sales Tax Exemption Form: Form MV-1B, the Affidavit of No Sales Tax Due, must be signed by both the buyer and the seller, stating that the transaction qualifies for the sales tax exemption.
By following these steps and providing the necessary documents, you can complete the purchase of a used car from a relative in South Carolina without being subject to sales tax.
It's worth noting that additional fees and taxes may still apply, such as titling fees, registration fees, and any applicable property taxes. For more information and guidance on the process of purchasing a used car from a relative in South Carolina, you may want to refer to the South Carolina Department of Motor Vehicles website or contact your local DMV office.
