Q Does Section 27-65-201(4) require a sales tax of five percent (5%) of the true value of a motor vehicle to be collected when the motor vehicle is taken in trade for a vehicle of almost equal value, or should the Tax Collector require payment of a sales tax of five percent (5%) of the net difference in value of the two vehicles to be traded?

A Section 27-65-201(4) requires the sales tax collected on the trade of two motor vehicles between two individuals to be five percent (5%) of the net difference of the value of the two motor vehicles traded. (Attorney General’s Opinion to Shepard, June 5, 2015)