61 Pa. Code § 31.47 - Transfers of registrations which are presumed to be for a purchase price

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).

Notes

61 Pa. Code § 31.47

The provisions of this § 31.47 adopted September 29, 1972, effective 9/30/1972, 2 Pa.B. 1816.

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).