why are license plates so expensive if you gift your car to your child? (sales, insurance)

[bentlebee]

I just learned that one of my kids has to pay at least $ 400 to get the car we gave years ago but for insurance purposes and for the reason that she didn't have any income, in our name.

Now we thought it is time to get the car out of our name and have it all arranged as it should for an adult working child who can afford a car and insurance payments.

The car has no loan on it and was gifted but now the DMV wants to issue a new license plate and insurance sticker while it was paid for many months to come and to me it is weird the amount of cost that come with it and I feel that may be the reason why so many out of State people keep driving with their old license plates.

How can someone with a lower income pay for all the fees if they just buying their first car or people who move here from out of State with a few cars in their name.

WOW!

Why can't see keep the same license plate and just a small admin fee to transfer the license plate in her name.

It seems just an inflated fee.

[BucFan]

IDK...maybe it's Fla's way to get tax money that it doesn't get from other means that other states utilize, i.e. income tax.

[marc3565]

That amount must include more than just the plate. We just did 2 drivers licences and 2 plates for about $500

[engineman]

When the car changes hands the "buyer" must get a new plate.

If it was registered in another state, then there is a fee for bringing a car into FL. When we returned to FL we were charged a substantial fee to change to to FL title and registration for the car we bought in AZ.

In a few states the plate stays with the car, FL is not one of them. It has not been for over 40 years.

In states where the plate stays with the car, there is the problem of Illegal buying a cheap car and not changing the ownership with the DMV and not buying insurance or having a drivers license.

[vaughanwilliams]

When you register a car title, you'll pay a one time sales tax on the selling price or what the car is worth (even if it's a gift).

[bentlebee]

The car always was and is in Florida. The DMV told me that if you write the word gift on it there is not tax on the car just for the new plate and sticker.

[MortonR]

A couple of issues here:

1.) As I understand it, you can't transfer plates (registrations) to another person. The registration is tied to you as an individual (or joint owners) and your insurer. It can't be reused.

2.) "Gifting" a car costs nothing as far as sales tax is concerned, but the title changes hands, so the required title fees must be paid. Your title is incorrect, as it implies that "gifting" is the expense or cost. inn fact, there is no cost to "gift" a vehicle.

Having just done this for an adult child earlier this year, I'm a bit confused as to where they came up with $400.

The title transfer fee is $75.75. Registration for a car ranges from $28.10 to $46.10 based on weight. A new license plate (not a vanity plate) costs $28.00.

That doesn't add up to $400, in fact, it's under $150.

Please explain.

RM

[bentlebee]

Originally Posted by MortonR

A couple of issues here:

1.) As I understand it, you can't transfer plates (registrations) to another person. The registration is tied to you as an individual (or joint owners) and your insurer. It can't be reused.

2.) "Gifting" a car costs nothing as far as sales tax is concerned, but the title changes hands, so the required title fees must be paid. Your title is incorrect, as it implies that "gifting" is the expense or cost. inn fact, there is no cost to "gift" a vehicle.

Having just done this for an adult child earlier this year, I'm a bit confused as to where they came up with $400.

The title transfer fee is $75.75. Registration for a car ranges from $28.10 to $46.10 based on weight. A new license plate (not a vanity plate) costs $28.00.

That doesn't add up to $400, in fact, it's under $150.

Please explain.

RM

Maybe you kept your name on the title as well as your child which makes the difference. The charge for the initial fee alone is $ 225 and we were told over the phone with taxes and other fees it would be close to $ 400.- for a new license plate without one of the parents staying on the title.

Otherwise it was way cheaper but liability is shared and that is what we were trying to eliminate at this point in time.

This is for a person who has a drivers license for 10 years in Florida so nothing to do with out of State!

I just learned the total paid today was $ 367.- in Pinellas County. I hope they did something wrong so we can collect money back, so please let me know but it is a lot of money for many people.




Classification

Weight

Annual Tax
and
Other Fees

Biennial Tax
and
Other Fees

Automobiles, private use thru 2499 pounds $27.60 $55.20
Automobiles, private use 2500-3499 $35.60 $71.20
Automobiles, private use 3500 $45.60 $91.20
Trucks, private and commercial thru 1999 pounds $27.60 $55.20
Trucks, private and commercial 2000-3000 $35.60 $71.20
Trucks, private and commercial 3001-5000 $45.60 $91.20

Additional Fees

Transferring a license plate from another vehicle $7.35
When a new metal license plate is issued $28.00
Initial Registration fee
This is charged when applicant does not have a Florida registration to transfer. $225.00

[MortonR]

I'm not sure how my name could remain on the title if it's transferred, unless there's joint ownership.

You made a major omission in your original post - you didn't mention that the car had been previously titled out of state. That's why it was expensive, as you had to pay the administrative fee for bringing a car into the state that had not been previously titled here. Add that $225 to the regular fees and you'll be around the number you quoted. That's what I suspected and why I asked for clarification.

There is a way around the administrative fee, but it involves prior action.

If you have an existing registration that was never taken off the books, the DMV can transfer the out of state vehicle to that registration, making it a Florida car. In other words, of you had a car you sold, for example, and you never replaced it or transferred the registration, it just sits in their system forever and ever.

When you come in with an out of state vehicle, they use that registration and assign it to the "new" vehicle, bypassing the administrative fee.

I have a car I sold in 2003 that still sits on the books. I've used it a number of times to bring a car in from out of state and avoid the $225 fee. For that matter, I used it back in May and I'm going to use it again this week.

RM

[The Villages Guy]

When we do not pay the state income taxes other states pay, then we pay per use on certain other items. I am fine with that myself. I would rather have some choice as to which taxes I want to or am willing to pay, rather than having all my income taxed and spent willy nilly, like some other states.