The Office of Motor Vehicles will collect sales/use tax on all transfers of new and used motor vehicles based on 75% of the NADA (National Automobile Dealers Association) retail value or the actual sales amount, whichever is greater.
Sales/use tax can be assessed on a an amount lower than the fair market value if the vehicle has sustained major mechanical or body damage. Documentation regarding this must be presented along with the file.
If a vehicle is purchased through a dealer, the sales tax is based on the total selling price, including any shipping or dealer prep fees less the trade-in (trade-in must be in seller's name and registered in Louisiana) or rebates, if any.
Upon moving to Louisiana new residents must register their vehicles immediately and are subject to the payment of a use tax based on the fair market value. A maximum of 4% credit may be allowed for a similar tax paid in another state against taxes due in Louisiana provided Louisiana has a reciprocal agreement with that state. Proof of payment of tax may be required.
Active duty military personnel entering Louisiana may register and title their vehicle without payment of sales/use tax. Proof must be furnished that sales tax was paid in another state, along with a copy of their military identification.
An act of donation means that no money, property, services or any other valuable consideration is exchanged for a motor vehicle.
An "act of donation" can be executed whenever a close family relationship exists between transacting parties and situations involving heirship, successions or divorced or legally separated spouses. An act of donation can also be made to a "bona fide" charitable or religious organization.