Pennsylvania Board Orders Reassessment of Use Tax on Discounted Vehicle Purchase

The Pennsylvania Board of Finance and Revenue (BFR) issued a decision instructing the Department of Revenue to reassess a taxpayer’s account regarding the use tax on a vehicle purchase, including the appropriate interest, while waiving any penalties. The taxpayer acquired a used vehicle from a friend for less than its fair market value. The Board determined that the Department correctly applied a substitute purchase price based on applicable regulations since the purchase price stated was not reflective of the vehicle’s true value due to the relationship between the buyer and seller. However, the Board concluded that the taxpayer acted in ...