In the State of Utah it is important to complete a Bill of Sale Form when selling a vehicle. For the seller, a Bill of Sale provides proof that title to the vehicle has been legally transferred. For the buyer, the Bill of Sale documents the purchase price of the vehicle for sales tax purposes.
The Utah Bill of Sale form should contain:
– Name and address of the buyer.
– Name, address and signature of the seller.
– Complete vehicle description, including the Vehicle Identification Number (VIN).
– Description of trade-in, if any.
– Purchase price of the vehicle.
– Trade-in allowance, if applicable.
– Net purchase price.
When you sell your vehicle:
– Remove your license plates from the vehicle. If you do not, you may be liable for any parking or traffic violations occurring while your plates remain on the car.
– Give the new owner the signed title, current registration certificate, and current safety and emission certificates. The new owner may obtain a temporary permit from any Motor Vehicle office by presenting the signed title, proof of insurance, and picture identification and paying all applicable fees.
– Notify the Division of Motor Vehicles in writing that your vehicle has been sold. The notification must include the vehicle year, make, plate or vehicle identification number and the owner’s signature. This notification can be sent by fax or mail.
Utah law requires a seller to provide a title within 48 hours of the transaction, a common-sense approach is to obtain a title at the time of sale, or wait to pay for the vehicle until the seller can provide the title. Without a negotiable title, you cannot title and register the vehicle in your name. A negotiable title is one that belongs to the vehicle being purchased. Check the make, model and compare the 17-digit Vehicle Identification Number (VIN) against the VIN on the car. And has been properly signed off by the seller. If the title is in more than one person’s name (a husband and wife, or a co-signing parent, for instance), both may need to sign. If the title says, “John Doe and Jane Doe”, both must sign off on the title. If the title lists “John Doe or Jane Doe,” only one must sign. No notary is needed to sign off on a title.
If a Utah title is lost, the buyer and the seller may fill out a Form TC-123, Application for a Duplicate Title. This document, properly completed, can then be used to register the vehicle in the purchaser’s name.
Also have a properly completed Form TC-891, Odometer Disclosure Statement filled out and signed by the owner and the buyer (if the car is 10 years old or older you do not need the Federal Odometer Disclosure Statement).
If the title shows a lien holder, verify that the lien has been released.
If the purchaser of the vehicle obtains a signed Bill of Sale from the seller of the vehicle, the amount of sales and/or use tax to be collected will be based upon the net purchase price shown on the Bill of Sale, if it contains the information described above.
If the buyer did not obtain a signed Bill of Sale from the seller (or the Bill of Sale does not meet the requirements described above), the DMV will calculate the amount of sales or use tax based upon the “Fair Market Value”.
For more information go to Utah State Tax Commission – Utah Division of Motor Vehicles.
The Utah Division of Motor Vehicles is a division of the Utah State Tax Commission. The primary duty of the Utah DMV is to issue title and registration for Utah vehicles, including passenger vehicles, trucks, trailers, motorcycles, motor homes, off-highway vehicles, boats, and snowmobiles.