Topic: DC Excise Tax On A Used Car: Fair or Legal?
DC Excise Tax On A Used Car: Fair or Legal?
My parents recently gifted my wife and me their old car (it was registered out of state). I went to the DMV yesterday to get it inspected, tagged, registered, and have the title changed. In addition to all those charges, I was also charged a 6% excise tax on the value of the car. I politely argued with the DMV agent about the tax charge (you can guess how that went), who exlained that the ONLY ways you don’t have to pay the excise tax is if the car was transferred between parent and child or between spouses AND it was already registered in the District. It seems like a racket to me. But is it a legal racket? Anybody else have experience with this? Was the DMV’s explanation correct?