WANADA working with DC DMV to ensure smooth roll out of their new title tax calculator, Apr. 1
As has been publicized by DC DMV and in issues of the WANADA Bulletin over the past month, the cityês motor vehicle agency is moving forward to bring itself into compliance with regulations that specify vehicle title tax calculations based upon the NADA Used Car Guide for the Eastern U.S.
The announced departure from DMVês approach in recent years to accept dealer calculations of DC title tax based upon actual vehicle sale prices has caused a stir among Washington area dealerships which sell most of the vehicles purchased by DC residents, who in turn must register them through DC DMV.
Some dealer concerns about DMVês April 1 roll out of their new online title tax calculator are as follows:
– What if the DC title tax calculator goes down and is unavailable and/or the calculator has no value for the vehicle sale that needs tax computation? No problem, says the DMV, because itês OK to fall back to the actual sale price for title tax computation in these instances.
– How do you document that youêve used the DMV calculator to figure the tax? Simply get a screen copy of the calculated tax numbers to send along with the tax remittance to the DMV with another copy for the deal jacket. The date of the sale is the time to utilize the DMV vehicle value calculator.
– How does a dealer square the DC title tax calculator, premised as it will be on the NADA Used Car Guide, with the dealershipês overall computer network that calculates title tax based on actual sale price? One dealer title administrator WANADA spoke to said she plans to charge the buyer DC title tax based upon the actual sale price, refunding or billing the buyer when the DC calculator price is more or less than the sale price.
Other DC vehicle registration issues are being vetted by WANADA through a task force on dealer title administrators which, in turn, are and will be presented to DMV regulators next week to ensure clarity on how dealers will be expected to proceed on April 1 and after.
DMV says they are crafting a Frequently Asked Questions (FAQ) sheet on the tax calculator to go to dealers next week. In the interim, it will be important for dealers to take care that vehicle sales and accounting staff are on board with title administrators on this. At the same time, dealers should be communicating with IT contractors and lenders.
WANADA will follow up with a Special Bulletin to all members in the latter part of next week.Download Bulletin PDF