Long story short, we have a car that we want to sign over to my wife's ex - they have two kids, and we're basically taking one and his car on our insurance, and the ex is taking the other and her car on his insurance. The daughter's car, the one we want to sign over, is titled in my wife's name. We know we have to do a bill of sale and sign the title over, but it looks like the state is going to be looking to collect sales tax on this "transaction", even though no money will be exchanging hands. I'm off to do some research on the issue but I'm wondering if anyone knows of an exemption, maybe transferring the title to the daughter instead of the ex, that will avoid the sales tax requirement.
I wouldn't have a problem with sales tax if there was a sale, but we just want to give the car away.