Gifting a car to my son. NY? PA?

[Wade Lippman]

I don't know who to ask about this, so I guess you guys are a good try.

My son is driving my car on my insurance in New York. He just got a job in Pennsyvania on a 1 year contract. It might be permanent; it might not be. (probably not) My insurance agent says that NY insurance is not good on cars domiciled in Pennsyvania, so I have to give it to him so he can register it there and buy insurance there.

So, how do I do this, paying as little tax as possible?
One website says I can add him to the NY title, and when he goes to PA he can register it there and get insurance; but that sounds too easy.

If you have any suggestions for a good place to ask this question....
Thanks.

[glenn bradley]

In CA, transfers of vehicles from parent to child (and some other relative combinations) is a $15 transfer fee. No smog, no re-valuation; things just carry on as they were with the exception of the title change as long as there is no lien holder.

[Jim Becker]

Check your state's DMV website...this is something usually covered in an FAQ or similar. I suspect doing the transfer in NY where you live will be easiest and then he can take the title with him to PA and register the vehicle there for just the normal fee which currently is $42 for one year or $79 for two years. (The latter is a new option...I just got a renewal notice and noticed that)

Here's the link for folks moving into PA:

http://www.dmv.pa.gov/Driver-Services/New-Resident-Relocation-Information/New%20Residents/Pages/default.aspx

[Randy Henry]

I am a retired trooper, so I am familiar with registration laws where I live, and adjoining states. This is commonly referred to as "reciprocity". Most states have a limit you can stay in state before having to register your vehicle in that state (60 days here). To comply with this, many folks keep their main home registration, and place a second registration in their new temporary home, having 2 different registrations on the same vehicle. The original home state plates stay on the vehicle, and the new state will give you their state's sticker to put on. You may check with PA to see if they do this. However, there will be no second title issued.

[Ralph Okonieski]

I just transferred a car to my son-in-law. I live in ohio so we may be different than either pa or ny. Anyway, on the form i filled to to transfer, there was a place to indicate it was a gift. It also required to identify the reltionship. Anyway, there was only a $19 fee if i remember correctly.

[Wade Lippman]

I found on the NYS DMV website that the tax was waived on a gift from a parent.
My issue now is that the PA DMV says that if a car hasn't been owned for more than 6 months, then evidence of tax being paid must be provided or it will be charged. I am not sure if evidence of $0 tax being paid is adequate. I have an email into them on this.

[Henry Keller]

If you belong to AAA maybe they can help












I don't know who to ask about this, so I guess you guys are a good try.

My son is driving my car on my insurance in New York. He just got a job in Pennsyvania on a 1 year contract. It might be permanent; it might not be. (probably not) My insurance agent says that NY insurance is not good on cars domiciled in Pennsyvania, so I have to give it to him so he can register it there and buy insurance there.

So, how do I do this, paying as little tax as possible?
One website says I can add him to the NY title, and when he goes to PA he can register it there and get insurance; but that sounds too easy.

If you have any suggestions for a good place to ask this question....
Thanks.

[Jim Becker]

Wade, is this a new or new-to-you car purchased within 6 months? Or are you referring to the transaction to transfer title to your son? If the former, it should be provable that tax was paid from your original transaction in combination with the lawful transfer of title subsequently to a family member. Of course, I'm just spouting off here...it's something that you need to confirm with the DMVs that will be involved here. You may actually have to call or email them to insure clarity, but as someone else suggested, if you're a member of AAA, their title/tag folks are pretty darn good at getting this kind of information, too.

[Lee Schierer]

Here is information directly from the Pennsylvania Department of Revenue website (https://revenue-pa.custhelp.com/app/answers/detail/a_id/2359/~/are-vehicles-received-as-gifts-subject-to-sales-tax%3F):
"Are vehicles received as gifts subject to sales tax?

Vehicles received as gifts are not subject to sales tax. However, the recipient of the gift must show that either the purchaser paid sales tax on the vehicle at the time of purchase or he/she paid use tax on the current fair market value of the vehicle in order to register the vehicle in Pennsylvania.

In many instances, taxpayers are incorrectly informed by licensing agents that a minimal purchase price (e.g. $1) must be reported on the MV-4ST, even if the vehicle is a gift. This is not correct. The listing of a nominal purchase price often triggers a transaction review by the Department of Revenue because the nominal purchase price is substantially less than the fair market value of the vehicle.

When registering a vehicle received as a gift, the taxpayer should fill out MV-13ST (http://www.dot.state.pa.us/Public/DVSPubsForms/BMV/BMV%20Forms/mv-13st.pdf), Affidavit of Gift. Proper completion of this form usually prevents the transaction from being referred to the Department of Revenue for review."

[Wade Lippman]

I appreciate everyone's help.
Two problems remain...
1) He has to get the registration within 20 days, but must get his drivers license first. To get his license he needs some specific documents to prove his residency, and won't have any of them at least a month or two. Hopefully his employer can help him there, somehow, though that is undesirable.
2) It says that I must be there when he transfers ownership. An email from the DOT says a notarized MV-13ST is adequate, but that is not what the website says. Well, its only a 4 hour drive...

[Eric Keller]

I'm not sure about family members in PA, but they are not big believers in gifts. Pretty sure they want sales tax on $500. I gave a car to a guy that noticed I wasn't driving it, he still had to pay the tax plus registration. Pennsylvania has private licensing companies, your son should find one. It would be really weird if you had to go there in person, the licencing companies take paperwork to Harrisburg, so it's all done remotely anyway.

[Jerome Stanek]

Why not gift it in NY and then let him title it in PA when he has an address

[Jim Becker]

Why not gift it in NY and then let him title it in PA when he has an address
This................

[Steve Jenkins]

Also get is drivers license in NY then transfer it to PA

[Wade Lippman]

Why not gift it in NY and then let him title it in PA when he has an address

That would fix the second issue at the expense of having to make two transfers and getting NY insurance for a month; but not the first.

They want two of W2s or tax records (he won't have until next year) utility bills, a lease, mortgage records, or a weapons permit (that he won't ever have as he gets a free apartment as part of his employment). I haven't any idea how to deal with that, but his employer has probably encountered it a few times.