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States requiring sales tax be paid for total loss settlements

by Diminished Value Car Appraiser on May 21, 2013

Sales tax on total loss cars

Below is a list that shows which states require insurance companies to pay sales tax above and beyond the vehicle’s actual cash value.

A third party claim is a claim filed against another carrier (at fault carrier). A first party claim is a claim filed against your own carrier, regardless of fault.

On a first party claim your policy will indicate if you’re eligible for reimbursement for the sales tax after your vehicle is declared a total loss. As a matter of public policy most carriers pay for sales tax on all claims.

States requiring sales tax be paid for total loss settlements

State Citation Applies to third-party claims?
Alabama AL ADC 482-1-125-.08 No
Alaska AK Bulletin 93-8; 3 AK ADC 26.080 No
Arizona AZ ADC R20-6-801 No
Arkansas AR Rule 43-10; AR ST s 23-89-11; AR Bulletin 2-2002 No
California 10 CA ADC s2695.8 No
Colorado CO ST s10-4-639 Yes
Connecticut CT ST s38a-816 Yes
Florida FL Information Bulletin 82-224 Yes
Georgia GA ADC 120-2-54-.06 No
Hawaii HI ST s431:10C-312 No
Illinois 50 Ill. Adm. Code 919.80 No
Indiana IN Bulletin 82 Yes
Kansas KS ADC s40-1-34 Yes
Kentucky KY Bulletin 81-DM-007; 806 KAR ADC 12:095 Yes
Maine ME Bulletin 194; ME TI 24A s2907 No
Maryland MD Ins Order 11-25-80 Yes
Minnesota MN ST s72A.201 No
Mississippi MS Bulletin 2007-4 Yes
Nebraska NE Bulletin CB-49 Yes
Nevada NVADC 686A.680 No
New Jersey NJ ADC 11:3-10.4 No
New York NY Gen Counsel Op 3-12-2001 11 NYCRR 216.6 Yes
Ohio OH ADC 3901-1-54 Yes
Oklahoma OK ST T.36 s1250.8 No
Oregon OR ADC 836-080-0240 Yes
Pennsylvania 31 PA ADC s62.3 Yes
Puerto Rico Rule XLVII 7 Yes
Tennessee TN Bulletin 9-1-89 Yes
Utah UT ADC R590-190-11 Yes
Vermont VT Bulletin 58; VT ADC Ins 79-2 Yes
Virginia VA Ins Order 11607 Yes
Washington WA Bulletin 89-3; WA ADC 284-30-3907 Yes
West Virginia WV ADC 114-14-7; WV ST s33-6-33 Yes
Wisconsin 12/97 Insurance Commissioner Newsletter No


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