Can a manufacturer obtain title to a motor vehicle without paying sales tax when the vehicle was purchased back by the manufacturer pursuant to the lemon law?
Yes. When a manufacturer is required to buy back a motor vehicle, all-purpose vehicle or off-highway motorcycle from the consumer pursuant to the lemon law, they can obtain title without paying sales or use tax. The Clerk of Courts must obtain sufficient evidence that the buy-back provision of the lemon law is being enforced. The clerk would use the ATPS sales and use tax exemption code “MB: Manufacturer buy-back – lemon law.” Return to Top 31. If the manufacturer repurchases my motor vehicle, watercraft or outboard motor, pursuant to the lemon law, and replaces it with another vehicle, do I have to pay tax when applying for title on the second vehicle? Yes. According to the lemon law, the manufacturer is required to refund to the purchaser the entire purchase price plus the sales tax. That refund is used to purchase the second motor vehicle, watercraft or outboard motor. Therefore, sales tax must be paid to the Clerk of Courts when obtaining title for the replacement item. If the manu
Yes. When a manufacturer is required to buy back a motor vehicle, all-purpose vehicle or off-highway motorcycle from the consumer pursuant to the lemon law, they can obtain title without paying sales or use tax. The Clerk of Courts must obtain sufficient evidence that the buy-back provision of the lemon law is being enforced. The clerk would use the ATPS sales and use tax exemption code “MB: Manufacturer buy-back – lemon law.” Return to Top 32. If the manufacturer repurchases my motor vehicle, watercraft or outboard motor, pursuant to the lemon law, and replaces it with another vehicle, do I have to pay tax when applying for title on the second vehicle? Yes. According to the lemon law, the manufacturer is required to refund to the purchaser the entire purchase price plus the sales tax. That refund is used to purchase the second motor vehicle, watercraft or outboard motor. Therefore, sales tax must be paid to the Clerk of Courts when obtaining title for the replacement item. If the manu
Related Questions
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