What is the NJ Auto sales tax rate?

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If my Father could no longer drive and I gave him $500.00 for his car worth $15000.00 do I have to pay tax on the car based on $15000.00 or $500.00. We use the car to transport him back and forth to the doctors.
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You pay taxes on the sale amount listed on the back of title at time of transfer.
I have been in a very similar situation and am a resident of NJ.
My father could no longer drive.
I wrote "GIFT" on the back of title and this legally exempts me from paying sales tax.
I still had to pay the standard fees for transferring title, registering the vehicle, and obtaining new tags.
Cost of registration depends on what vehicle make/model you are talking about.
The grand total of all my fees paid to DMV amounted to approx $70.
I had to go in person to the DMV of course, this type of procedure can't be done over the internet.
To sum it up and save you a little bit of time:
1) Grab the title and write down all the information on back of title, if you have questions leave it blank and ask while at the DMV.
Remember - your father is technically the seller of vehicle and he must sign and date the back of title where "seller" info is requested and you should sign the "buyer" portion.
He does not have to go with you to the DMV to complete the transfer of vehicle ownership.
2) Go to your DMV.
3) Take off the license plates before you walk in the door.
4) Write down the exact mileage of your vehicle before you walk in the DMV door.
5) Write down your insurance policy number before walking in the door (you will need it).
6) Write down the VIN# of the car (you will need it - should be on title).
7) Walk in the door of DMV
8) Go to information desk line (standard procedure - they will direct you)
9) Fill out all paperwork provided to you (likely to be two forms if I remember)
10) If no questions, go into the line assigned by information desk with your completed paperwork in hand and cash or personal check ready.
11) If any questions, talk to one of the DMV representatives walking around the information desk - they are assigned to help you!
12) After submission of paperwork there will be a waiting period to receive your new documents (Title, Tags, and Registration) depends on how busy the DMV is at the time. I waited about 20 minutes after submitting all paperwork.
A note about sales tax:
The sale of a car is taxed at 7% in NJ, very few residents are taxed at half that rate which is 3.5% because they live in areas which qualify for the reduced state tax rate (example: Vineland and Millville in Cumberland County).
If you buy the car from your father for $500 and write that exact sale amount on the back of the title, you will be charged $35 at the DMV.
$500 x 7% = $35 sales tax.
$500 x 3.5% = $17.50 sales tax if you live in a qualified area of NJ.
If a Power of Attorney handles your fathers affairs:
And/or your father is not capable of completing the seller portion of existing title due to health reasons - a "power of attorney" can complete this section for you.
If you are the Power of Attorney over his affairs
You can complete the seller portion section and you can also complete the buyer portion. If you are Power of Attorney you should absolutely bring a copy of the documentation and the original with you to the DMV. They will want to see it.
In my case, I'm Power of Attorney regarding my fathers affairs.
The DMV clerk handling all completed documents had to refer my situation to a supervisor. This is not an everyday situation at the DMV so be prepared for a little longer wait at DMV if Power of Attorney is involved.
When Power of Attorney is involved:
If possible, you may want to find out when the DMV supervisor will be in the office prior to making a trip. If you need the supervisor and happen to show up on his/her off day or a vacation day - you will have to make a second trip to DMV to complete your quest. It happened to me!

First answer by ID1194375441. Last edit by Mikedonald. Contributor trust: 0 [recommend contributorrecommended]. Question popularity: 1 [recommend question].