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  • If I purchase a used car from a dealer or individual owner, am I responsible for the unpaid taxes of the previous owner?
View All Vehicle Valuation FAQs

If I purchase a used car from a dealer or individual owner, am I responsible for the unpaid taxes of the previous owner?

Yes. As stated above, Ad valorem tax is a property tax and not a use tax and follows the property from owner to owner. Therefore, unlike registration fees, taxes accumulate even when a vehicle is not used on the highway. When an Alabama resident buys a vehicle with an outstanding ad valorem tax lien, the buyer must: Pay all ad valorem tax that has accrued on the purchased vehicle since it was last registered and any applicable interest and penalties on taxes that are delinquent, except for the ad valorem taxes that would have been due in arrears for the 1999 tax year. Also, transfer the buyer’s current plate to the vehicle or purchase a new plate for the vehicle within 20 days of acquisition to avoid a late penalty.

Yes. As stated above, Ad valorem tax is a property tax and not a use tax and follows the property from owner to owner. Therefore, unlike registration fees, taxes accumulate even when a vehicle is not used on the highway. When an Alabama resident buys a vehicle with an outstanding ad valorem tax lien, the buyer must: Pay all ad valorem tax that has accrued on the purchased vehicle since it was last registered and any applicable interest and penalties on taxes that are delinquent, except for the ad valorem taxes that would have been due in arrears for the 1999 tax year. Also, transfer the buyer’s current plate to the vehicle or purchase a new plate for the vehicle within 20 days of acquisition to avoid a late penalty.
Related FAQs in Vehicle Valuation
The owner has sixty (60) days to claim the credit voucher from the date the vehicle is sold, traded, totally destroyed, permanently removed from Alabama, stolen without recovery, or transferred to claim the credit voucher in the county in which the taxes were originally paid.
Yes. As stated above, Ad valorem tax is a property tax and not a use tax and follows the property from owner to owner. Therefore, unlike registration fees, taxes accumulate even when a vehicle is not used on the highway. When an Alabama resident buys a vehicle with an outstanding ad valorem tax lien, the buyer must: Pay all ad valorem tax that has accrued on the purchased vehicle since it was last registered and any applicable interest and penalties on taxes that are delinquent, except for the ad valorem taxes that would have been due in arrears for the 1999 tax year. Also, transfer the buyer’s current plate to the vehicle or purchase a new plate for the vehicle within 20 days of acquisition to avoid a late penalty.
Yes. Ad valorem tax is a property tax and not a use tax and follows the property from owner to owner. Therefore, unlike registration fees, taxes accumulate even when a vehicle is not used on the highway.
Upon the sale, trade, total destruction, permanent removal from Alabama, theft without recovery, or other transfer of a motor vehicle constituting Class I, Class II, or Class IV property under Section 40-8-1, the owner of such motor vehicle will be entitled to a pro rata credit for the ad valorem taxes paid for the remainder of the then current period for which such taxes have been paid.