Alabama Vehicle Bill of Sale
Alabama codifies 11 minimum bill-of-sale elements and a 2% state automotive tax on the price.
Introduction
An Alabama vehicle bill of sale records the sale of a car, truck, motorcycle, or trailer between a private seller and buyer. Alabama does not prescribe a general consumer bill-of-sale form. Instead it codifies the content, requiring that a bill of sale in connection with the sale of a motor vehicle contain 11 minimum elements under Ala. Admin. Code r. 810-5-1-.246, so a private seller may use any document that includes them. A named form exists only for the narrow Abandoned Motor Vehicle Act path, Form MVT 32-13B, which is not used for an ordinary private sale. Notarization is not required for a standard private-sale bill of sale or for title and MSO assignment. Federal odometer disclosure under 49 CFR 580 still applies, with the post-2021 twenty-model-year exemption. You title and register through the county licensing official under the ALDOR Motor Vehicle Division within 20 calendar days of acquisition. State automotive tax is 2% computed on the purchase price, which the bill of sale documents for the county official, plus local rates. Section 40-12-260 also requires a registrant to keep a legible copy of the bill of sale in the vehicle for the first 20 days when the vehicle is not subject to the Alabama Uniform Certificate of Title and Antitheft Act. DocDraft drafts an Alabama vehicle bill of sale from your facts, with attorney review available before you sign.
Key Things to Know
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Alabama has no general consumer bill-of-sale form but codifies 11 required elements. Ala. Admin. Code r. 810-5-1-.246 requires that a bill of sale for a motor vehicle contain a set of minimum elements, including the purchaser's name and physical address, the date of sale, a complete vehicle description with VIN, make, year, model, and body type, the seller's name and address, the signatures of seller and purchaser, and the purchase price. A private seller may use any document that meets these elements. A named Form MVT 32-13B exists only for the Abandoned Motor Vehicle Act path. Re-confirm the current rule against the Alabama Department of Revenue.
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The bill of sale does not need to be notarized. Alabama does not require the assignment of an MSO or title to be notarized, and notarization is not required for a standard private-sale bill of sale. Notarization or two witness signatures applies only on the no-title surety-bond or abandoned-vehicle path, not the ordinary sale.
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Federal odometer disclosure applies, with Alabama-specific handling. The odometer reading is not required to be recorded in the assignment of an MSO, but on other transfers with a certificate of title the mileage on the application must agree exactly with the title assignment. The federal 49 CFR 580 rule governs the disclosure itself, with the 2021 twenty-model-year exemption. Alabama does not publish a separate standalone odometer form for private sales.
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State automotive tax is 2% of the purchase price. Sales or use tax on a vehicle is computed at the state automotive rate of 2% on the purchase price, plus local county and city rates. The bill of sale documents the purchase price the county licensing official uses to set the tax.
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You title and register through the county licensing official within 20 days. Title and registration are administered by the county licensing official under the ALDOR Motor Vehicle Division, not a central state DMV office. The buyer has 20 calendar days from the date of acquisition to title and register the vehicle.
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The bill of sale carries a genuine retention requirement in Alabama. Under Section 40-12-260, within the first 20 calendar days of acquiring a self-propelled vehicle and before registering, a registrant must keep a legible copy of the bill of sale in the vehicle when the vehicle is not subject to the Alabama Uniform Certificate of Title and Antitheft Act. This is stronger than the optional status the bill of sale has in many states. Re-confirm the current requirement against the Alabama Department of Revenue.
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The codified 11-element rule plus the 20-day in-vehicle retention rule set Alabama apart. Rather than a single official form, Alabama defines what the document must contain under r. 810-5-1-.246 and ties a statutory in-vehicle retention duty to it under Section 40-12-260, while a flat 2% state automotive tax is computed on the bill-of-sale price by the county licensing official.
Key decisions before you file
Before you file a Bill of Sale in Alabama, a few decisions shape the document: which option to choose and what each one means. The Bill of Sale guide walks through them.
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Alabama Requirements for Bill of Sale
Alabama does not prescribe a general consumer vehicle bill-of-sale form. Ala. Admin. Code r. 810-5-1-.246 requires that a motor-vehicle bill of sale contain a set of minimum elements, including the purchaser's name and complete physical address, the date of sale, a complete vehicle description with VIN, make, year, model or series number, and body type, the seller's name and complete address, the signatures of seller and purchaser, and the purchase price. A private seller may use any document meeting the rule. A named Form MVT 32-13B exists only for the Abandoned Motor Vehicle Act path. Re-confirm against the Alabama Department of Revenue.
Alabama does not require the assignment of an MSO or title to be notarized, and notarization is not required for a standard private-sale bill of sale. The document is completed by the signatures of the seller and purchaser or an authorized representative. Notarization or two witness signatures applies only on the no-title surety-bond or abandoned-vehicle path, not the ordinary sale.
Identify the purchaser by name and complete physical address and the seller by name, including any DBA name, and complete address, as required by Ala. Admin. Code r. 810-5-1-.246. Accurate party information lets the county licensing official process the title and tax.
Describe the vehicle by VIN, make, year, model or series number, and body type, and state the purchase price and the date of sale or acquisition. These are required elements under r. 810-5-1-.246, and the purchase price is the figure the county licensing official uses to compute tax.
Federal regulations require the seller to disclose the odometer reading and the buyer to acknowledge it on transfer of a vehicle that is not exempt, with vehicles twenty model years old and older exempt. The odometer reading is not required on an MSO assignment, but on transfers with a certificate of title the mileage on the application must agree exactly with the title assignment. Alabama does not publish a separate standalone odometer form for private sales.
Alabama charges sales or use tax on a vehicle at the state automotive rate of 2%, computed on the purchase price, plus local county and city rates. The county licensing official uses the purchase price documented on the bill of sale to set the tax, so the price stated on the bill of sale directly determines what the buyer owes.
Title and registration are administered by the county licensing official under the ALDOR Motor Vehicle Division, not a central state DMV office. The buyer has 20 calendar days from the date of acquisition to title and register the vehicle, and the county licensing official collects the 2% state automotive tax plus local rates at that time.
Under Section 40-12-260, within the first 20 calendar days of acquiring a self-propelled vehicle and before registering, a registrant must keep a legible copy of the bill of sale in the vehicle when the vehicle is not subject to the Alabama Uniform Certificate of Title and Antitheft Act. This in-vehicle retention duty makes a compliant bill of sale effectively required, not merely supplementary. Re-confirm against the Alabama Department of Revenue.
Frequently Asked Questions
Alabama does not prescribe a general consumer bill-of-sale form, but it does codify what a bill of sale must contain. Ala. Admin. Code r. 810-5-1-.246 requires a motor-vehicle bill of sale to include 11 minimum elements, such as the purchaser and seller names and addresses, the date of sale, the vehicle description with VIN, the signatures of both parties, and the purchase price. Section 40-12-260 also requires keeping a legible copy of the bill of sale in the vehicle for the first 20 days when the vehicle is not subject to the Alabama Uniform Certificate of Title and Antitheft Act, so a compliant bill of sale is effectively required.
No. Alabama does not require the assignment of an MSO or title to be notarized, and notarization is not required for a standard private-sale bill of sale. The bill of sale is completed by the signatures of the seller and purchaser, or an authorized representative, as listed among the required elements in Ala. Admin. Code r. 810-5-1-.246. Notarization or two witness signatures applies only on the no-title surety-bond or abandoned-vehicle path, not on an ordinary sale.
There is no general consumer vehicle bill-of-sale form prescribed in Alabama. Instead, Ala. Admin. Code r. 810-5-1-.246 codifies 11 minimum content elements that a motor-vehicle bill of sale must contain, so a private seller may use any document that meets the rule. A named form, Form MVT 32-13B, exists only for the narrow Abandoned Motor Vehicle Act path and is not used for an ordinary private sale. Check the Alabama Department of Revenue for the current rule and any updates.
Alabama charges sales or use tax on a vehicle at the state automotive rate of 2%, computed on the purchase price, plus local county and city rates. The county licensing official uses the purchase price documented on the bill of sale to set the tax, which is why a bill of sale stating an accurate price matters. The tax is handled when you title and register the vehicle through the county licensing official under the ALDOR Motor Vehicle Division.
Title and registration in Alabama are administered by the county licensing official under the ALDOR Motor Vehicle Division, rather than a single central state DMV counter. The buyer has 20 calendar days from the date of acquisition to title and register the vehicle. The county licensing official collects the 2% state automotive tax plus local rates, using the purchase price documented on the bill of sale. The same office relies on the bill of sale to process the transaction.
Ala. Admin. Code r. 810-5-1-.246 requires a motor-vehicle bill of sale to contain a set of minimum elements, including the purchaser's name and complete physical address, the date of sale, a complete vehicle description with VIN, make, year, model or series number, and body type, the seller's name and complete address, the signatures of the seller and purchaser or an authorized representative, and the purchase price. Penalty language, tax information, and a dealer license number apply when the seller is a licensed retail dealer. A private seller may use any document that meets the rule.