State of Rhode Island - Division of Taxation
Sales and Use Tax
Regulation SU 87-73
Motor Vehicles - Transfer by Conditional Vendee
Whenever a person who has purchased a motor vehicle on conditional bill of sale or other financing arrangement transfers the vehicle thus acquired to another person who assumes liability or obligation for paying off the unpaid balance due on that vehicle, the transaction will be regarded as a casual sale of the vehicle from the vendee to the new owner and the new owner must pay the tax before he or she will be permitted to register the vehicle.
Cross Reference: Casual Sales
R. GARY CLARK
DATE: May 1, 1987