Home > Personal Finance > No sales tax on a vehicle transfer in NM

No sales tax on a vehicle transfer in NM

February 22, 2011 Leave a comment Go to comments

I recently bought a truck from my sister and financed it through the local Kirtland federal credit union (FCU) in the Albuquerque area.

I was really glad I did, the local branch manager mentioned a interesting little tip to me about vehicle title and transfer when I initially talked to him about the loan.

I was expecting to pay some kind of sales tax along with the transaction, something like 3% (or a little over $500) of the amount financed is typical.

The tip was that a vehicle can be gifted to another family member, this means there is no “money” exchanged between parties and the Bill of Sale amount is marked “Gift”  Along with that another form is filled out detailing the relationship of the people in the transaction called “Affidavit of Gift”.

It is the filling out of these 2 forms that allows family members to avoid paying the 3% sales tax when a vehicle/boat is transferred.

Kirtland FCU also handled getting me a temporary plate (card) and helped register the truck (I still had to pay the registration fee).  When the NM plate comes into the local branch in a couple weeks, all I need to do is just pick it up.

Great customer service, thanks Kirtland FCU!

Hope this is useful, it was to me!

- Dom

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