Verification of Fair Market Value
In situations where the purchaser cannot provide documentation to verify the purchase price recorded on the application for registration, the purchaser may provide documented proof of a lower fair market value than that reported to the Revenue Department. Documentation may include copies of bills showing major repair work or a written appraisal from a certified dealer stating the vehicle’s value and providing a detailed description of the vehicle’s condition and/or pictures of the vehicle. Purchasers may also submit information from PennDOT-approved publications indicating a lower fair market value:
- The National Automobile Dealers Association;
- The Automobile Red Book;
- The Black Book Official Used Car Guide;
- American Used Car Guide; and/or
- The Kelley Blue Book Used Car Guide.
If Revenue is satisfied that the purchaser has adequately documented a lower fair market value than the value reported to the Revenue Department, it will adjust the amount of sales tax due to reflect a percentage (six or seven percent) of the purchase price. Otherwise, the purchaser will be billed for the additional sales tax due, plus penalty fees and interest, based on the fair market value originally reported to the Revenue Department.
Copies of the MV-1, MV-3, MV-4ST and NV-13 filed with PennDOT are not acceptable to verify the fair market value.
Verification of fair market value may be faxed to (717) 772-5046 or mailed to:
PA DEPARTMENT OF REVENUE
BUREAU OF ENFORCEMENT PLANNING
ANALYSIS & DISCOVERY
PO BOX 281221
HARRISBURG PA 17128-1221