Are court-ordered title transfers subject to the sales or use tax?
Generally, NO since the courts will order the transfer of title without consideration (divorce, dissolution, estate settlement, etc.). If, however, the court orders the transfer of title with consideration to be paid (including cancellation of debt) by the new titleholder, the transfer would be subject to the sales or use tax based on the amount paid. If no consideration and a court order, use ATPS exemption codes “CO: Court-ordered transfer with no consideration” or “DV: Divorce – court-ordered transfer with no consideration” or “IH: Inheritance with no consideration, includes surviving spouse.
Generally no, since the courts will order the transfer of title without consideration (divorce, dissolution, estate settlement, etc.). If, however, the court orders the transfer of title with consideration to be paid (including cancellation of debt) by the new titleholder, the transfer would be subject to the sales or use tax based on the amount paid.
