Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 31 - IMPOSITION › VEHICLES › Section 31.47 - Transfers of registrations which are presumed to be for a purchase price

Current through Register Vol. 54, No. 28, July 13, 2024
The following are examples of transfers of vehicles
						  which are presumed to be for a purchase price and, therefore, are subject to
						  tax:
(1)
Purchase of vehicle
						intended as a gift or as a raffle prize.
The purchase of a vehicle
						which the owner intends to give to another is nonetheless subject to tax. Tax
						is not imposed on the subsequent transfer of the vehicle from the donor to the
						donee. See also §
												31.48(7)
						(relating to transfer of registrations which are presumed not to be for a
						purchase price).
(2)
Foreign purchase of vehicle intended as a gift.
When a vehicle
						is purchased outside of this Commonwealth and the purchaser brings it into this
						Commonwealth with the intention of giving it to another, the purchaser shall
						pay use tax thereon. Thus, if a husband, having purchased a vehicle in
						Maryland, registers it in this Commonwealth in his wife's name, a use tax shall
						be paid by the husband upon the use of the vehicle in this Commonwealth, even
						though he subsequently gives the vehicle to his wife.
(3)
Transfer from partner to
						partnership or from partnership to partner.
A transfer of a vehicle
						from a partner to the partnership, or from a partnership to a partner, is a
						taxable transfer, and is presumed to be made in consideration of an increased
						interest in the partnership, or for services rendered the partnership or for
						other value passing between the parties.
(4)
Transfer to or from a
						corporation.
A transfer of a vehicle to a corporation in exchange for
						stock is a taxable transfer, even though the transferor is the sole stockholder
						of the corporation. A transfer of a vehicle to or from a corporation for any
						purpose is presumed to be a taxable transfer, regardless of the reason or
						motive for which the transfer is made, and the taxpayer has the burden of
						overcoming this presumption by showing clear and sufficient evidence that there
						was in fact no consideration for the transfer.
(5)
Transfer between parent
						corporation and wholly owned subsidiary.
The transfer of a vehicle by
						a parent corporation to a wholly owned subsidiary corporation or by a
						subsidiary corporation to the parent shall be a taxable transfer unless such
						transfer is the result of a corporate merger or consolidation under the
						Business Corporation Law (15 P. S. §§
													1001-2914).
This section cited in 61 Pa. Code §
														31.7 (relating to use tax); 61 Pa.
							 Code §
														31.41 (relating to definitions);
							 61 Pa. Code §
														31.41a (relating to scope); 61 Pa.
							 Code §
														33.2 (relating to purchase price);
							 and 61 Pa. Code §
														60.16 (relating to Local Sales,
							 Use and Hotel Occupancy Tax).