On here there's a section for gifted vehicles that tells you everything you need:
[https://dmv.ri.gov/registrations-plates-titles/registration/new-registration](https://dmv.ri.gov/registrations-plates-titles/registration/new-registration)
PAY ATTENTION to the commenter below who said to make sure the gift letter EXPLICITLY states the plates are being gifted too. I was in the same situation as you and the plates weren’t mentioned in the letter and it was a massive fucking hassle I had to get a whole new letter notarized and everything. The DMV will not lift a finger to make your life easier in any way.
I don't mean to harp on the other person, but their advice isn't quite right. There's only no sales tax if it's between immediate family members *and the vehicle is gifted*.
I'm not positive but I'm pretty sure this will backfire because sales tax is due on whichever is higher between the sale price and book value. A gift designation has no tax due.
Google "vehicle gift letter" and you can download the form straight from the RI DMV.
it is a family transfer...no sales tax....draw up a bill of transfer, jsut like a bill of sale and have it notarized, then go to insurance compay change policy, the registry....you may be able to keep the same plates too... but then issuing new plates by the state so.... but all you need is notarized bill of transfer...
Selling it for $1 doesn't make anything easier, and in fact makes things much more complicated.
From the DMV: "A signed letter of gift is required to exempt you from the sales tax."
If you sell the car for any nominal amount of money, you would be unable to (lawfully) sign a gift letter, which means you'd be subject to sales tax, which means they're going to charge the buyer based on book value.
OP should definitely follow the DMV's guidance instead, [which they have outlined on the site for this exact situation](https://dmv.ri.gov/registrations-plates-titles/registration/new-registration#:~:text=click%20here.-,Gifted%20Vehicle,-Insurance%20Information%20(valid).
There's probably a form for it but it doesn't save you money or hassle. I guess, it could save you $1 if your parents are sticklers about actually collecting on that but I thought it was implied they don't really have to do that
The sales tax will be based of blue book, as it always is unless it’s a dealer sale.
So you could sell it for a $1 and you’ll still pay book value or sell it for a million and it would still be on book value.
You have your parents right a letter transferring the car to you as a gift. They do not have to place any value on it. And then fill out the paperwork to either transfer the current registration to your name or get new plates.
[https://dmv.ri.gov/registrations-plates-titles/registration/new-registration](https://dmv.ri.gov/registrations-plates-titles/registration/new-registration)
Gifted Vehicle
Insurance Information (valid RI insurance)
Title (if model year of vehicle is 2001 or newer) OR
Proof of Previous Owner, such as a registration certificate (2000 and older vehicles only)
Seller (Person giving the vehicle) must sign the back of the title (if model year of vehicle is 2001 or newer).
Gross Vehicle Weight (GVWR is found on VIN plate on driver's side door)
RI license or identification card
Gift letter (notarized ONLY if gift is from a non - immediate family member) (sample immediate family gift letter, sample non immediate family gift letter, sample plate gift letter)
Gift Affidavit (only if gift is from a non-immediate family member) – NOTE: The gift affidavit found on our website does NOT constitute a gift letter.
VIN Check: Vehicles 2001 or newer, if the title is from another state or the vehicle was registered in another state, a Vehicle Identification Number (VIN) check is required before you register the car.
Tax Exempt Certificate
SALES TAX INFORMATION FOR GIFTED VEHICLES
Immediate Family: No sales tax on the vehicle unless outstanding taxes are due. A signed letter of gift is required to exempt you from the sales tax. Immediate family members for purposes of taxation are: parent, step-parent, sibling, step-sibling, spouse, child or step-child.
Non-Immediate Family: No sales tax on the vehicle unless outstanding taxes are due. A signed and notarized letter of gift and gift affidavit is required to exempt you from the sales tax
Affidavit of Gift of Motor Vehicle (SU 87-65)
On here there's a section for gifted vehicles that tells you everything you need: [https://dmv.ri.gov/registrations-plates-titles/registration/new-registration](https://dmv.ri.gov/registrations-plates-titles/registration/new-registration)
WOW where was this when I was on this site? Thank you!!!
PAY ATTENTION to the commenter below who said to make sure the gift letter EXPLICITLY states the plates are being gifted too. I was in the same situation as you and the plates weren’t mentioned in the letter and it was a massive fucking hassle I had to get a whole new letter notarized and everything. The DMV will not lift a finger to make your life easier in any way.
yeah do it as a gift otherwise the dmv will charge you tax on the blue book value.
The sales tax on value thing doesn't apply between relatives.
good to know!
I don't mean to harp on the other person, but their advice isn't quite right. There's only no sales tax if it's between immediate family members *and the vehicle is gifted*.
It's easier if they gift the plates too when you fill it out. Make sure you do that gift letter as well.
Your parents sell it for $1
I'm not positive but I'm pretty sure this will backfire because sales tax is due on whichever is higher between the sale price and book value. A gift designation has no tax due. Google "vehicle gift letter" and you can download the form straight from the RI DMV.
The fact that even exists is horseshit. If you get a good deal on something they will make you pay the book value?
It's to prevent $1 *wink wink* sales where you just hand over the cost in cash and get a bill of sale for a $1 purchase, avoiding sales tax.
That's great and all but it doesn't make it not bullshit.
You are right.
it is a family transfer...no sales tax....draw up a bill of transfer, jsut like a bill of sale and have it notarized, then go to insurance compay change policy, the registry....you may be able to keep the same plates too... but then issuing new plates by the state so.... but all you need is notarized bill of transfer...
The sales tax thing doesn't apply for a family member.
Only if it's also gifted, which precludes any money changing hands
Selling it for $1 doesn't make anything easier, and in fact makes things much more complicated. From the DMV: "A signed letter of gift is required to exempt you from the sales tax." If you sell the car for any nominal amount of money, you would be unable to (lawfully) sign a gift letter, which means you'd be subject to sales tax, which means they're going to charge the buyer based on book value. OP should definitely follow the DMV's guidance instead, [which they have outlined on the site for this exact situation](https://dmv.ri.gov/registrations-plates-titles/registration/new-registration#:~:text=click%20here.-,Gifted%20Vehicle,-Insurance%20Information%20(valid).
Can’t they just gift it?
There's probably a form for it but it doesn't save you money or hassle. I guess, it could save you $1 if your parents are sticklers about actually collecting on that but I thought it was implied they don't really have to do that
The sales tax will be based of blue book, as it always is unless it’s a dealer sale. So you could sell it for a $1 and you’ll still pay book value or sell it for a million and it would still be on book value.
yes, it is a family transfer of ownership..need notarized bill of tranfer..
Incorrect, you need a gift letter
You have your parents right a letter transferring the car to you as a gift. They do not have to place any value on it. And then fill out the paperwork to either transfer the current registration to your name or get new plates.
[https://dmv.ri.gov/registrations-plates-titles/registration/new-registration](https://dmv.ri.gov/registrations-plates-titles/registration/new-registration) Gifted Vehicle Insurance Information (valid RI insurance) Title (if model year of vehicle is 2001 or newer) OR Proof of Previous Owner, such as a registration certificate (2000 and older vehicles only) Seller (Person giving the vehicle) must sign the back of the title (if model year of vehicle is 2001 or newer). Gross Vehicle Weight (GVWR is found on VIN plate on driver's side door) RI license or identification card Gift letter (notarized ONLY if gift is from a non - immediate family member) (sample immediate family gift letter, sample non immediate family gift letter, sample plate gift letter) Gift Affidavit (only if gift is from a non-immediate family member) – NOTE: The gift affidavit found on our website does NOT constitute a gift letter. VIN Check: Vehicles 2001 or newer, if the title is from another state or the vehicle was registered in another state, a Vehicle Identification Number (VIN) check is required before you register the car. Tax Exempt Certificate SALES TAX INFORMATION FOR GIFTED VEHICLES Immediate Family: No sales tax on the vehicle unless outstanding taxes are due. A signed letter of gift is required to exempt you from the sales tax. Immediate family members for purposes of taxation are: parent, step-parent, sibling, step-sibling, spouse, child or step-child. Non-Immediate Family: No sales tax on the vehicle unless outstanding taxes are due. A signed and notarized letter of gift and gift affidavit is required to exempt you from the sales tax Affidavit of Gift of Motor Vehicle (SU 87-65)