AGO 1996-098.

• Case Date: January 17, 1996
• Court: Alabama

Alabama Attorney General Opinions 1996. AGO 1996-098. 1996-098January 17, 1996Honorable Adrian T. Johns Probate Judge P.O. Box 459 Bay Minette, AL 36507 Probate Judges - License Commissioners - Casual Sales Tax - Fair Market Value A licensing official may collect casual sales tax based on the purchase price provided under oath by the purchaser. A licensing official cannot require a purchaser to stipulate to a standard value in lieu of the purchase price sworn to by the purchaser in a Bill of Sale or Affidavit.Dear Judge Johns: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTIONS 1. Is it proper for the licensing official to collect casual sales tax based on the consideration found in a Bill of Sale or the Affidavit enclosed even though the consideration shown or certified to is a nominal amount and obviously does not reflect market value? 2. If the consideration, as evidenced by a Bill of Sale or the enclosed Affidavit, is a nominal amount and obviously does not reflect market value, does the licensing official have the authority to collect casual sales tax based on market value reflected in the Revenue Department's Motor Vehicle Assessment Schedule? FACTS AND ANALYSIS When a motor vehicle, boat, or mobile home is purchased from someone other than a licensed dealer, the casual sales tax found at Code of Alabama 1975, _ 40-23-100, et seq., is required to be collected by the appropriate county licensing official prior to the registration or licensing of such taxable item. The tax is levied upon the purchase price less any credit for a used vehicle, motorboat, or trailer taken in trade. Section 40-23-103. To establish proof of the purchase price when the motor vehicle, motorboat, or mobile home is purchased from someone other than a licensed dealer in this state, the licensing official, under _ 40-23-104(c), is authorized to require the purchaser to present a sworn report and a properly executed bill of sale or other satis factory evidence to establish the purchase price. When the stated value is a nominal amount, the licensing official may inquire into the circumstances of the purchase and require additional documentation to substantiate the purchase price. The licensing...