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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
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On May 21, 2013
Last modified:June 13, 2018

Summary:

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

StateCitationApplies to third-party claims?
AlabamaAL ADC 482-1-125-.08No
AlaskaAK Bulletin 93-8; 3 AK ADC 26.080No
ArizonaAZ ADC R20-6-801No
ArkansasAR Rule 43-10; AR ST s 23-89-11; AR Bulletin 2-2002No
California10 CA ADC s2695.8No
ColoradoCO ST s10-4-639Yes
ConnecticutCT ST s38a-816Yes
FloridaFL Information Bulletin 82-224Yes
GeorgiaGA ADC 120-2-54-.06No
HawaiiHI ST s431:10C-312No
Illinois50 Ill. Adm. Code 919.80No
IndianaIN Bulletin 82Yes
KansasKS ADC s40-1-34Yes
KentuckyKY Bulletin 81-DM-007; 806 KAR ADC 12:095Yes
MaineME Bulletin 194; ME TI 24A s2907No
MarylandMD Ins Order 11-25-80Yes
MinnesotaMN ST s72A.201No
MississippiMS Bulletin 2007-4Yes
NebraskaNE Bulletin CB-49Yes
NevadaNVADC 686A.680No
New JerseyNJ ADC 11:3-10.4No
New YorkNY Gen Counsel Op 3-12-2001 11 NYCRR 216.6Yes
OhioOH ADC 3901-1-54Yes
OklahomaOK ST T.36 s1250.8No
OregonOR ADC 836-080-0240Yes
Pennsylvania31 PA ADC s62.3Yes
Puerto RicoRule XLVII 7Yes
TennesseeTN Bulletin 9-1-89Yes
UtahUT ADC R590-190-11Yes
VermontVT Bulletin 58; VT ADC Ins 79-2Yes
VirginiaVA Ins Order 11607Yes
WashingtonWA Bulletin 89-3; WA ADC 284-30-3907Yes
West VirginiaWV ADC 114-14-7; WV ST s33-6-33Yes
Wisconsin12/97 Insurance Commissioner NewsletterNo

 

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