N.Y. Comp. Codes R. & Regs. tit. 20 § 528.15

Current through Register Vol. 46, No. 25, June 18, 2024

Section 528.15 - Motor vehicles sold by a husband or wife to his or her spouse, or by a parent to his or her child, or by a child to his or her parent

Tax Law, § 1115(a)(14)

(a)Exemption.

The sale of a motor vehicle by the owner to his or her spouse, parent or child is exempt from sales or use tax; however, this exemption shall not apply if the vendor is a dealer.

(b)Definitions.

(1) A motor vehicle, for the purposes of this section, is defined in accordance with section 125 of the Vehicle and Traffic Law. It excludes trailers but includes every vehicle operated or driven upon a public highway which is propelled by any power other than muscular power, except:

(i) electrically driven invalid chairs being operated or driven by an invalid;

(ii) vehicles which run only upon rails or tracks; and

(iii) snowmobiles.

(2) A dealer is defined, in accordance with section 415 of the Vehicle and Traffic Law, as a person engaged in the business of buying, selling or dealing in motor vehicles, motorcycles or trailers other than mobile home trailers, at retail or wholesale. Any person who sells or offers for sale more than five motor vehicles, motorcycles or trailers in any calendar year or who displays or permits the display of three or more motor vehicles, motorcycles or trailers for sale at any one time or within any one calendar month upon premises owned or controlled by him, if such vehicles were purchased, acquired or otherwise obtained by such person for the purpose of resale, will be regarded as a dealer.

Example 1:

A husband and wife each own a motor vehicle. They exchange cars as the husband intends to trade in his wife's car for a new one. The exchange of cars between husband and wife is for a consideration (car for car) and is not a gift. A sales tax would ordinarily be due on both vehicles, but as it is an exchange between a husband and wife the exemption applies.

Example 2:

A parent purchases an automobile, for his child's use; title is in the parent's name. A year later, the child assumes payment of the note, and title is transferred to him. A sales tax would ordinarily be due on the transfer of a car in exchange for the assumption of liabilities; but as this is a transaction between a parent and a child, the exemption applies.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 528.15