Transactions for documents mailed and dropped off are being completed as quickly as possible, in the order in which they are received. The average turnaround time is approximately four weeks. The DMV appreciates the public’s patience as it navigates through the COVID-19 pandemic.

Sales/Use Tax Regarding Bartered, Swapped, 
and Financed Vehicles

Bartered Vehicles:

The taxable price is based on the total considerations (cash, property, services, assumption of seller's debt, etc.) in the transaction. Hence if a vehicle is purchased through other considerations besides money alone (such as through service provided to the transferor), the transferee is taxed on the book value of the vehicle.


Swapped Vehicles:

When the book values of swapped vehicles are nearly equal, tax is due for both parties based on the average trade-in value. If there is a significant difference in book values, it is assumed some other considerations (cash, service, assumption of debt, etc.) were involved. If parties cannot provide a reasonable explanation for the inequitable exchange, the tax for both is based on the higher book value.


Financed Vehicles:

Motor vehicles, motorboats, or snowmobiles may be purchased on the condition that the purchaser "assumes" an existing loan on the vehicle. The tax due to the purchaser is based on the value given directly to the seller plus the value of the loan assumed by the purchaser regardless of the manner in which the purchaser plans to pay off the loan.