Issuing Agents Required to Verify Fair Market Value on MV-3
PennDOT Requirements
Section 1318 of the Vehicle Code, "Duties of Agents" requires PennDOT contracted issuing agents to verify the insurance information and purchase price given on applications for vehicle registration renewals or temporary registrations.
Section 1218(d) specifically requires agents to verify that the purchase price stated on Form MV-1, MV-4ST or MV-217A is close to the fair market value of the vehicle.
To comply with this requirement, agents must compare the purchase price on the form to the veicle's average fair market value as published in one of the PennDOT-approved pricing guides. Form MV-3 - Motor Vehicle Verification of Fair Market Value by the Issuing Agent is required when the purchase price is less thatn 80 precent of the average fair market value of the vehicle, or if the vehicle is over 15 years old and the purchase price is less than $500.
The failure to include an MV-3 when it is required is one of the main reasons why PennDOT rejects title and registration applications and returns them to applicants to correct the omission.
Department of Revenue Requirements
If the Department of Revenue requests verification of the purchase price, a purchaser may submit a legible copy of the bill of sale. If a bill of sale is not available, the purchaser may submit a copy of the cancelled check, financial agreement or other information related to the sale. The purchaser may also submit a signed statement from the seller, which must include the name and address of the seller, the date of the sale, the sale price and the make, model and VIN number of the vehicle.
However, the Department of Revenue will not accept copies of these forms filed with PennDOT to verify the purchase price:
However, failure to provide the requested documentation may result in the assessment of additional sales tax based on the vehicle's fair market value, plus penalty fees and interest from the date of the purchase.
For more information:
Form MV-3:
www.dot.state.pa.us/Public/DVSPubsForms/BMV/BMV%20Forms/mv-3.pdf
Fact Sheet: Verification of Fair Market Value:
www.dmv.pa.gov/Migration/Documents/fs-mvmv.pdf
Section 1318 of the Vehicle Code, "Duties of Agents" requires PennDOT contracted issuing agents to verify the insurance information and purchase price given on applications for vehicle registration renewals or temporary registrations.
Section 1218(d) specifically requires agents to verify that the purchase price stated on Form MV-1, MV-4ST or MV-217A is close to the fair market value of the vehicle.
To comply with this requirement, agents must compare the purchase price on the form to the veicle's average fair market value as published in one of the PennDOT-approved pricing guides. Form MV-3 - Motor Vehicle Verification of Fair Market Value by the Issuing Agent is required when the purchase price is less thatn 80 precent of the average fair market value of the vehicle, or if the vehicle is over 15 years old and the purchase price is less than $500.
The failure to include an MV-3 when it is required is one of the main reasons why PennDOT rejects title and registration applications and returns them to applicants to correct the omission.
Department of Revenue Requirements
If the Department of Revenue requests verification of the purchase price, a purchaser may submit a legible copy of the bill of sale. If a bill of sale is not available, the purchaser may submit a copy of the cancelled check, financial agreement or other information related to the sale. The purchaser may also submit a signed statement from the seller, which must include the name and address of the seller, the date of the sale, the sale price and the make, model and VIN number of the vehicle.
However, the Department of Revenue will not accept copies of these forms filed with PennDOT to verify the purchase price:
- MV-1 - Application for Certificate of Title/Application for Registration
- MV-4ST - Vehicle Sales and Use Tax Return/Application for Registration
- MV-217A - Application for Certificate of Title by a Financial Institution or Dealer After Default by Owner
- MV-3 - Motor Vehicle Verification of Fair Market Value by the Issuing Agent
However, failure to provide the requested documentation may result in the assessment of additional sales tax based on the vehicle's fair market value, plus penalty fees and interest from the date of the purchase.
For more information:
Form MV-3:
www.dot.state.pa.us/Public/DVSPubsForms/BMV/BMV%20Forms/mv-3.pdf
Fact Sheet: Verification of Fair Market Value:
www.dmv.pa.gov/Migration/Documents/fs-mvmv.pdf
