Section 13 Titling and Registration

• Library: Tax Law 2009

At the time of transfer of a motor vehicle, a purchaser must pay title and registration fees in addition to all sales and use tax due and owing. While the primary function of titling and registration of motor vehicles is not revenue production, it does have the effect of raising revenue, in addition to the sales and use taxes that must be paid. In In re Jackson, 268 F. Supp. 434, 438 (E.D. Mo. 1967), the court stated that the purpose of issuing a title is to maintain a system of establishing title to motor vehicles and to ensure the collection of applicable sales and use taxes on the transfer of motor vehicles.

The title application requirements are as follows:

• A full description of the motor vehicle

• The manufacturer’s or other identification number

• The applicant’s source of title

• Any liens or encumbrances on the vehicle

• If the vehicle’s source of title is an out-of-state source, an inspection form containing the identification number...