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SB125 / HB251- Repeal of Notarized Bill of Sale Requirement

Vehicle Dealers |

* Bulletin Disclaimer *

Please note the Bulletin publish date above as the information within this Bulletin may have been updated or replaced. Always consult the most current Business Bulletins before relying on this information.

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Bulletin: Dealers and Tag & Title Agents

From: Vehicle Services Division 

PURPOSE

To inform ERT users that the requirement of a notarized bill of sale for the private sale of a vehicle less than 7 years old has been repealed and provide guidance for transactions where the NADA value is disputed or unavailable. 

SUMMARY

Effective October 1, 2026, a notarized bill of sale is no longer required for vehicles less than 7 years old sold by a private party. Taxes will be calculated based on the sale price reported if within $500 of the NADA value returned by the system. If the reported price is more than $500 lower than the NADA value, the customer can be taxed on the NADA value or provide documentation to support the lower sales price. Title transfers with a disputed value will need to be submitted through the portal for processing by an MVA agent. 

Likewise, if NADA fails to return a value for the vehicle, you will receive an error message in your ERT system, and the transaction will need to be submitted through the portal.  MVA agents will review the submitted documentation to verify the reported price.

Acceptable Evidence to Support Reported Value

It is not possible to provide an exhaustive list of acceptable documentation or evidence to determine an accurate value. MVA’s goal is to ensure vehicle transfers are taxed appropriately. To that end, the following items may be used to support the reported sale price when necessary:

  • Bill of sale, or documentation of vehicle condition supporting price.
  • Supporting financial documents. E.g. canceled check, bank statement showing payment, loan documents, etc.
  • Printed ad for vehicle with price, or record of communication with seller discussing price.
  • Listing from alternative national publication.  E.g. Kelley Blue Book, Price Digest, etc.
  • MVA agents can perform independent research to determine reasonable price range. 

If you have any questions or comments, please reach out to Thomas Stottlemire ([email protected]) or Shanequa Richards-Marks ([email protected]).