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9/22/2017 12:11:25 AM
Posted: 8/18/2005 3:17:08 PM EDT
Hello All

My sister in law purchased a vehicle here in TN in May. She is a resident of Michigan. The car was bought on May 15. I found the car and gave her the money to purchase the car, she was having a hard time. She was going to buy the car here and register it in MI. When she bought the car here in TN she signed a form that she was buying the car for out of state and did not have to pay tax on it in TN, but would pay tax in MI.

Well I get a call today that she did not register the car in MI and she was driving around with the tags from her old vehilce. They pulled her over, ran the tags, then they searched her and impounded the car.

They tell her she does not have proof of ownership of the vehilce with the TN title and will require a Bill of Sale to get the car out of the impound and be able to register the car.

So my father in law called the MI State Department (Where you get tags in MI) and they said she needed a bill of sale or she could sell the car to me I could pay the TN tax and give her the car as a gift and then she could register it. I told the father in law to get legal counsel on the matter and I would look into it here.

Friday I am going to call our County Clerks Office (Where you register a car and get tags in TN) and see if I can "buy" the car from her even though she signed a form that she would register the car in MI and pay all the taxes on it. She has paid no tax on this car.



So legal eagles, experienced TN and MI used car dealers here are my questions.

1. Will her "selling" the car to me and giving the car as a gift satisfy MI?

2. Will TN alllow her to sell the car? Will she have to pay bax taxes on the car, is there any penalties?

3. Any other input or advice?

This Firday I am going to call the County Clerks Office and my Attorney for advice. I am just looking for AR15.com input
Link Posted: 8/18/2005 4:33:32 PM EDT
Someone must have some input.

Link Posted: 8/18/2005 4:43:13 PM EDT
This is funny and it reminds me of when I was patroling a certain "area" of town pretty much every vehicle stop resulted in three tickets; no registration, no proof of insurance and no inspection/false inspection sticker. I guess it would have been a whole lot less expensive to just play by the rules, huh...............
Link Posted: 8/18/2005 4:55:32 PM EDT

Originally Posted By JFP:
This is funny and it reminds me of when I was patroling a certain "area" of town pretty much every vehicle stop resulted in three tickets; no registration, no proof of insurance and no inspection/false inspection sticker. I guess it would have been a whole lot less expensive to just play by the rules, huh...............



When she bought the damn car I told her to register it as soon as she got home, but she didn't.

Now I find the car, loan her the money, and now I am trying to figure out how to get her car back. I told her dad to get a lawyer cus they are going to need it.

The girl is only like 19, but she should know better.
Link Posted: 8/18/2005 5:13:58 PM EDT
[Last Edit: 8/18/2005 5:14:27 PM EDT by bobwrench]

Originally Posted By ffsparky26:

So my father in law called the MI State Department (Where you get tags in MI)






In Michigan you get License plates at the Secretatary of State office.
Link Posted: 8/18/2005 5:24:53 PM EDT

Originally Posted By bobwrench:

Originally Posted By ffsparky26:

So my father in law called the MI State Department (Where you get tags in MI)






In Michigan you get License plates at the Secretatary of State office.



Yeah that's it.

Have you ever heard of them not accepting an out of state title as prrof of ownership? TN does not require a bill of sale when a dealer sells a car. And MI wants a Bill of Sale.

Link Posted: 8/18/2005 5:31:10 PM EDT
[Last Edit: 8/18/2005 5:33:24 PM EDT by rkbar15]
A a bill of sale is generally required to establish the amount of sales tax to be paid. If the vehicle is being given as a gift a sworn affidavit to that effect is usually required. Some states will just calculate the tax based on the make, year and model of the vehicle.

I've never heard of a dealer not giving a bill of sale to the purchaser of a MV. Just get one from the dealer.
Link Posted: 8/18/2005 5:31:27 PM EDT
Hindsight is always 20-20.

You should have posted "Buying sister a car out of state, any suggestions" to start with.

Link Posted: 8/18/2005 5:42:36 PM EDT

Originally Posted By rkbar15:
A a bill of sale is generally required to establish the amount of sales tax to be paid. If the vehicle is being given as a gift a sworn affidavit to that effect is usually required. Some states will just calculate the tax based on the make, year and model of the vehicle.

I've never heard of a dealer not giving a bill of sale to the purchaser of a MV. Just get one from the dealer.



They don't have to in TN and this dealer didn't. They gave me a photocopy of the title. I will go by and talk to them again and see what they can do. She really needs a lawyer.
Link Posted: 8/18/2005 6:03:46 PM EDT
I'm curious without a BOS how do they calculate the sales tax? How do you insure the vehicle?
Link Posted: 8/19/2005 2:39:31 PM EDT

Originally Posted By rkbar15:
I'm curious without a BOS how do they calculate the sales tax? How do you insure the vehicle?



They just put the sale price on the title. I think they did give her a BOS. Things are smelling fishy about this and I will look into it further.

There is also a state sales tax document she signed that stated the value of the car and that she would take the car out of state 3 days within the sell of the vehicle.

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