Birthdays, graduations, and weddings are just a few of the occasions for giving a vehicle to someone. When gifting a car in Florida, following the state's DMV requirements for the title transfer to the new owner gives the receiver a new vehicle and gives you peace of mind.
What Do You Need for Gifting a Car in Florida?
If you are giving someone a vehicle in Florida, transfer your Florida title to the new owner as if you were selling the vehicle. You need the certificate of title and a bill of sale, form HSMV 83330, the Florida Insurance Affidavit, title fees, and registration fees. It's legal to give a car to a minor in Florida. If you do, make sure they have a valid driver's license and can maintain insurance on the vehicle. When you buy someone a new car from a dealership, the dealer takes care of your paperwork.
Giving a Notice of Sale
Even though you are making a gift, you should give the new owner a notice of sale or bill of sale. Providing the notice of sale protects you and the recipient. The county tax collector office updates its records immediately when it marks a vehicle title "sold" in its system. However, until the new owner completes the title transfer process, the ownership status is not updated with the Florida Department of Highway Safety and Motor Vehicles (DHSMV). If the new owner commits an illegal act or has an accident with the vehicle before the title transfer is completed with the DHSMV, the notice shields you from being responsible legally.
Additionally, the recipient uses the bill of sale or an affidavit to verify the gift and title transfer information for the Department of Revenue. Include the Vehicle Identification Number (VIN) and the make, model, year and brief description of the vehicle in the notice or bill of sale you give.
Your family member or another gift recipient must have an Insurance Affidavit, Form HSMV 83330. Completing this form and having proof of insurance such as a policy or card establishes they carry car insurance on the vehicle.
How to Sign Over the Vehicle Title
To complete a transfer of title with a paper title certificate, go to the section "Transfer of Title by Seller." Fill in the name and address of the person who is receiving the vehicle, the gift date, and the actual odometer reading from the vehicle at the time of the gift. Are you gifting a car in Florida that is at least 10 years old as of January 1 of the current year? If so, the vehicle is exempt from all odometer declarations or odometer disclosures statements. It's acceptable to use the figure $0 as the sales price when gifting a car in Florida.
In the left column of the Seller section, sign your name. In the right column of the section, print your name. Have the person receiving the car title sign their name in the left column of the Purchaser section and write their name by hand in the same part, right column. If you are giving the vehicle to two people as co-owners, have the second person fill out the Co-Purchaser section in the same way. Give the new owners a copy of the lien satisfactions if you had any liens on the car, so they'll have proof that the title is clear. You need a bill of sale if any information is not included on the title's Transfer of Vehicle by Seller section.
Transferring an Electronic Title
If you want to give someone a vehicle or mobile home and you hold an electronic title for it, you and the recipient can agree to transfer the state title electronically. Both of you need to go to the local tax collector's office to fill out and sign a secure reassignment document that states the vehicle's odometer reading. Otherwise, pay $2.50 to have the electronic title printed and mailed to you. Use the Fast Title option at your local tax collector office to get the paper title printed while you wait.
Completing the Transfer at the Tax Collector's Office
You and the recipient must take or mail the application for a certificate of title and all documents and fees to the county tax collector's office for title service processing. It's a good idea for you and the recipient to go together, so you ensure the title is transferred out of your name and into theirs. With both of you there, you resolve any questions or problems on the spot. Typically, the agency issues a new certificate of title within five working days after it receives the title application, documentation, and fees.
Include Transfer and Title Fees in Your Gift Expenses
To complete your gift to the new vehicle owner, be prepared to pay necessary title fees and transfer fees. While the state of Florida can change its fees at any time, plan on spending $77.25 for new vehicles and $75.25 for vehicles registered in Florida previously. If you're giving a vehicle that was registered in another state or country already, plan on paying $85.25. If the vehicle is new to Florida, the vehicle transfer fee is $225. Some tax collectors provide expedited service for processing title transfers. Check with your local county tax collector's office to find out whether the service is available. If so, expect to pay an additional $10 transfer fee for the faster service and the basic title fees.
No Sales Tax When Gifting a Car in Florida
When you give a vehicle to a family member, another individual, or a corporation, there's no sales tax on the title transfer as long as there's no payment for the transfer and the new owner doesn't assume any outstanding lien. The new owner should claim the sales tax exemption at the time of transfer. To do so, they must declare the ownership transfer is a gift, which makes it exempt from tax. They should fill in the declaration under the "Sales Tax Exemption Certification" section of the application for a certificate of title, license, or registration they file with the Florida DMV, county tax collector, or private license plate agency.