When are motor vehicle sales between family members exempt from Kansas sales tax?

Plain-English summary

This notice (aimed at county treasurers) explains a new sales tax exemption for isolated and occasional sales of motor vehicles between immediate family members, effective July 1, 1995.

• 'Immediate family members' = lineal ascendants and descendants and their spouses. Qualifying examples: parent to son/daughter (including adopted and step children) and their spouses; child to parent (including step parents); son/daughter-in-law to parent-in-law; grandparent to grandchild (or the grandchild's spouse); grandchild to grandparent (or spouse).
• Not immediate family: brothers, sisters, aunts, uncles, nieces, nephews -- those sales are taxable.
• A sale or gift of a vehicle with a lien is exempt if buyer and seller are immediate family.
• Joint owners: if a co-owner isn't immediate family, the sale is exempt only when the title is an 'and/or' or 'or' ownership (e.g. 'Joe Brown and/or Mary Green'), not a plain 'and' title.
• Qualifying vehicles: generally cars, light trucks, and motorcycles. Not qualifying: trailers and vehicles under K.S.A. 79-5101 (state-assessed/utility vehicles, over 12,000 lbs, rental-company vehicles, RVs, and others exempt from property tax).

To claim it, buyer and seller complete a notarized Affidavit of Relationship (Form TR-215), which the buyer submits to the county treasurer.

What this means for you

If you buy or are given a car, light truck, or motorcycle from a Kansas parent, child, grandparent, grandchild, or in-law (or their spouse), the sale is exempt from Kansas sales tax as of July 1, 1995 -- but you must file a notarized Affidavit of Relationship (Form TR-215) with the county treasurer. Sales between siblings, aunts/uncles, or nieces/nephews are still taxable.

Common questions

Q: Which family vehicle sales are exempt from Kansas sales tax?
A: Sales between immediate family -- lineal ascendants and descendants and their spouses (parents, children, grandparents, grandchildren, and in-laws). Sales between siblings, aunts, uncles, nieces, or nephews are not exempt.

Q: How do you claim the family vehicle exemption?
A: The buyer and seller complete a notarized Affidavit of Relationship (Form TR-215), and the buyer submits it to the county treasurer with the title paperwork.

Citations and references

• Kansas sales tax exemption for isolated or occasional motor vehicle sales between immediate family members
• K.S.A. 79-5101 (vehicles that do not qualify)
• Form TR-215 (Affidavit of Relationship)

Subject

Some Vehicle Sales Now Exempt

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: Notice 95-09

Original ruling text

Notice
Notice Number: 95-09
Tax Type: Kansas Retailers’ Sales Tax
Brief Description: Some Vehicle Sales Now Exempt
Keywords:
Effective Date: 07/01/1995

Body:
Division of Taxation
SOME VEHICLE SALES NOW EXEMPT

County treasurers should be aware of a new sales tax exemption on isolated and occasional sales of motor vehicles. This notice is intended to help county treasurers
understand the exemption, who qualifies for it, and how it may be claimed.

Beginning July 1, 1995, sales of motor vehicles between immediate family members are exempt from sales tax. Immediate family members are defined as lineal
ascendants and descendants and their spouses. Accordingly, the sale or gift of a vehicle on which there is a lien is exempt if the buyer and seller are immediate
family members, as defined in the statute.

Vehicle sales that qualify for this exemption include, but are not limited to, sales from a:

                    - parent to son or daughter (including adopted children and step children) and their spouses;
                    - son or daughter to mother or father (including step parents);
                    - son-in-law or daughter-in-law to parent-in-law;
                    - grandparent to a grandchild or the grandchild's husband or wife; and
                    - grandchild to a grandparent or to the grandparent's spouse.

    Sales between brothers and sisters, aunts, uncles, nieces, and nephews are not sales between "immediate family members" as defined by the new law and do
    not qualify for this exemption.

    When one or more of the joint owners of a vehicle are not immediate family members, the sale is exempt only if the sellers' title is an "and/or" or "or" type
    of ownership. For example, Joe Brown and Mary Green are brother and sister and are selling their car to Susan Green, Mary's daughter. The sale is exempt
    if the car is currently titled to "Joe Brown and/or Mary Green" or "Joe Brown or Mary Green." The sale is taxable if the car is titled to "Joe Brown and
    Mary Green."

    Vehicles that qualify for this exemption generally include cars, light trucks, and motorcycles. Vehicles that do not qualify for this exemption are trailers and
    vehicles defined under K.S.A. 79-5101. These are:

                    - all state assessed vehicles (including utility vehicles);
                    - motor vehicles having a gross weight of more than 12,000 pounds;
                    - motor vehicles owned by car rental companies;
                    - recreational vehicles; and
                    - all other vehicles which are exempted from property tax under the provisions of the Kansas Statutes Annotated or the Kansas Constitution.

    To certify that a vehicle sale is exempt the enclosed Affidavit of Relationship (form TR-215) must be completed. Both the buyer and seller must attest to
    their family relationship and each of their signatures must be notarized. Buyers must submit the affidavit to their county treasurer. The treasurer should
    forward the affidavit and title paperwork to the Department of Revenue.

    If you have questions about this exemption or its application, please call (913) 296-0222, or write to the Taxpayer Assistance Bureau, Kansas Department of
    Revenue, 915 SW Harrison St., Topeka, Kansas, 66625-0001.




    NOTICE 95-09 (7/12/95)
    TO: County Treasurers
    RE: Vehicle Sales Tax Exemption



                                                                      Division of Taxation
                                                                  AFFIDAVIT OF RELATIONSHIP
                                      Complete all parts of this form. Both the seller's and buyer's signatures must be notarized.

Page 2

 Vehicle Information:


 Year Make Model ID#



 The sale of the above vehicle is exempt from sales tax because of the family relationship between the seller and the buyer.



 Relationship Certification—Seller:

 I hereby certify that I am related to the buyer as a lineal ascendant or descendent. I am the of the buyer. (father, mother, etc.—see box below)

                                                                Seller's Signature:
 By my signature I swear or affirm that this is a true and correct statement. I am aware that the law provides severe penalties for making false statements
 under oath.
 State of
 County of

 Signed and sworn to or affirmed before me on (Seal, if any)
 (Date)

 Notary Public: My Commission Expires:


 RELATIONSHIP CERTIFICATION—BUYER:

 I hereby certify that I am related to the seller as a lineal ascendant or descendent. I am the of the seller.
 (son, daughter, etc.—see box below)

                                                                Buyer's Signature:
 By my signature I swear or affirm that this is a true and correct statement. I am aware that the law provides severe penalties for making false statements
 under oath.
 State of
 County of

 Signed and sworn to or affirmed before me on (Seal, if any)
 (Date)

 Notary Public: My Commission Expires:




 Lineal ascendants or descendants are: grandfather, grandmother, father, mother, son, daughter, adopted child, step child, grandchild, and the spouses of any
 of these. A brother, sister, aunt, uncle, niece or nephew does not qualify for exemption.




 TR-215 (7/95)

Date Composed: 10/02/1997 Date Modified: 10/10/2001

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