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 |
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| 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 |
