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Sales Tax on Vehicle in LA

Posted on 3/2/23 at 7:13 am
Posted by LSU1018
Baton Rouge
Member since Feb 2007
7362 posts
Posted on 3/2/23 at 7:13 am
If you traded vehicles with someone, is there a way to treat it as a trade for sales tax purposes without going through a dealership?
Posted by lsujro
north of the wall
Member since Jul 2007
4089 posts
Posted on 3/2/23 at 8:54 am to
if your trades are of even value, there is no "sale" to tax. the value is what you say it is
Posted by Twenty 49
Shreveport
Member since Jun 2014
20903 posts
Posted on 3/2/23 at 9:15 am to
Not sure. An OMV policy paper says "The amount of sales tax due when titling a vehicle in Louisiana may be reduced when a vehicle is purchased from a dealer with a qualifying trade-in." LINK

The statute they refer to says "(13)(a) "Sales price" means the total amount for which tangible personal property is sold, less the market value of any article traded in ...." No mention of a dealer there, but that statute has a million parts, and you'd have to print it out and study the hell out of it to make sure it's not roped in by some definition or other subsection. LINK

I'd call OMV or one of those private title places and ask what they think. Or paper it up with a notarized bill of sale that describes the vehicles being traded and says that they are of equal value, and hope for the best. Make it the lowest reasonable value to reduce taxes if you end up having to pay.
Posted by wmtiger69
west monroe
Member since Nov 2007
973 posts
Posted on 3/2/23 at 3:35 pm to
Just do an act of donation for each vehicle to the new owner.
Posted by dgnx6
Member since Feb 2006
86312 posts
Posted on 3/2/23 at 3:37 pm to
Yeah i would think they have to be equal value.

When you do a trade in at the dealer it actually lowers the total and by default the taxes due.

If i sold my vehicle privately then turned around and bought the other vehicle, I would owe the taxes on say 30k vs 15k.

Posted by Twenty 49
Shreveport
Member since Jun 2014
20903 posts
Posted on 3/3/23 at 4:12 am to
quote:

Just do an act of donation for each vehicle to the new owner.


They have in the past excused sales tax on a donation to an individual only when donor and donee are immediate family members.

Not sure how tough they are on that these days, but their donation form asks for the relationship between the parties. ACT OF DONATION OF A MOVABLE
Posted by TSLG
Member since Mar 2014
6724 posts
Posted on 3/3/23 at 12:22 pm to
Dealers have paid a lot of money for their economic protection.

The law doesn't require a dealer to be involved, but good luck getting it done.

It is a pain in the arse to correct what a local omv employee thinks is the proper way.
Posted by Twenty 49
Shreveport
Member since Jun 2014
20903 posts
Posted on 3/3/23 at 5:42 pm to
In Arkansas, if you buy a new car, then privately sell your old car within 60 days (?) you can apply for a tax credit equal to what you would saved by a trade in at the dealer.

I imagine the LADA gives too much to our legislators for them to ever bestow that benefit on our citizens. It gives the dealers an edge on lowballing trades.
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