What a Louisiana Act of Donation Does and When You Need One
Quick Answer: An act of donation transfers a vehicle to someone else with no money changing hands. In Louisiana, it is an authentic act, so form DPSMV1699 has to be signed before a notary in the presence of two witnesses. No sales or use tax is due, with one exception: if the person receiving the vehicle assumes an outstanding loan, tax is owed on that balance.
TLDR:
- An act of donation is a no-money transfer, done on form DPSMV1699.
- It is an authentic act, so it needs a notary plus two witnesses. A notary alone is not enough.
- No sales or use tax is due on a donation where nobody assumes a mortgage.
- If a loan balance is assumed, tax is due on the outstanding principal, unless a spouse assumes it.
- The title also has to be assigned before a notary, and the donee files a DPSMV1799.
- Handing someone the keys is a manual gift, and the OMV only accepts those through a licensed dealer.
- Budget $68.50 for the title fee plus an $8 handling fee. Our fee to handle the transfer is $80.
Most people who come to us about this are moving a vehicle inside the family. A parent passing a car to a kid heading to college, a grandparent who has stopped driving, a sibling taking over a truck that has been sitting.
The instinct is to keep it simple. Sign the title, hand over the keys, done. That is the version that creates a problem six months later when the new driver tries to register it and finds out the transfer never legally happened.
Donating a vehicle to family? We are an authorized Public Tag Agent in Covington with a notary on site, so the signing and the title work happen in one visit.
Donation or Manual Gift? The Distinction That Decides Your Paperwork
Louisiana recognizes two ways to give away a movable thing like a vehicle, and only one of them works at the OMV counter for a private transfer.
The Office of Motor Vehicles defines a donation as an authentic act executed before a notary in the presence of two witnesses, transferring ownership with no monetary exchange. A manual gift is different. Under Louisiana Civil Code Article 1543, a donation of a corporeal movable may be made by delivery of the thing to the donee without any other formality.
That sounds like it should cover handing someone a set of keys. Here is the catch. OMV Policy 52.00 states that a donation of a vehicle by manual gift is only acceptable when it is submitted in connection with a motor vehicle transaction by a Louisiana Motor Vehicle Commission licensee. In plain terms, the manual gift route runs through a licensed dealer. For a private family transfer, you are doing an act of donation.
That is why the paperwork matters more here than people expect.
What the Act of Donation Form Actually Asks For
Form DPSMV1699, the Act of Donation of a Movable is short, and every blank on it is there for a reason.
The form asks for the parish, the donor, the donee, and the vehicle by make, model, year, and VIN. Two lines catch people off guard. It asks for the relationship between donor and donee, and it asks for the value of the property being donated.
That value line is not optional, and it is not a place to write zero. The vehicle has a real value even when nobody is paying for it, and the OMV uses that figure. The donor also warrants on the form that there are no mortgages, liens, or encumbrances against the vehicle, which is a meaningful statement to sign if a loan is still open.
At the bottom there are four signature lines and one for the notary: donor, donee, and two witnesses. The two witnesses are what makes it an authentic act rather than an ordinary signed paper.
Once the form is right, the rest is the standard title packet.
The Full Document List for a Donated Vehicle
The OMV wants the donation paperwork and the ordinary transfer paperwork together. Missing one piece sends you home.
Per OMV Policy 52.00, a donation transfer needs:
- Vehicle Application form DPSMV1799, completed and signed by the donee
- The current certificate of title, assigned before a notary by the donor to the donee
- Act of Donation form DPSMV1699, completed in its entirety and notarized
- An odometer disclosure, and if the field on the back of the title is blank, a supplemental odometer statement
- A lien release, if a lien is recorded on the title
- Proof of a UCC-1 or other security agreement, if a new lien is being recorded
- Proof of current liability insurance, if a license plate is being issued
- A copy of the donee’s driver’s license or state ID, if a license plate is being issued
Note the second item. The title itself has to be assigned in front of a notary, separately from the donation form. That is the step people most often complete incorrectly at a kitchen table, and it is a large part of why notarizations get rejected.
What It Costs, and the Tax Rule Worth Reading Twice
This is the part that surprises people in a good way, and then occasionally in a bad one.
| Item | Amount |
|---|---|
| Title fee | $68.50 |
| Handling fee | $8.00 |
| License plate or transfer fee | If applicable |
| Lien recordation, security agreement | $10.00 |
| Lien recordation, UCC-1 filing | $15.00 |
| Sales and use tax | Only if a mortgage is assumed |
Those amounts go to the OMV. Title Authority’s fee for handling a title transfer is $80, which covers document preparation, the notary, and any other paperwork the transfer needs. That is on top of tax, title, and license.
OMV Policy 52.00 lists sales and use tax as not due on an act of donation where no assumption of mortgage is occurring. It puts donations in the same category as transfers by affidavit of heirship, by divorce decree, and by judgment of possession.
Now the exception. Tax is due on the outstanding principal when someone assumes a mortgage, unless the person assuming it is a spouse. So a father giving his daughter a paid-off truck owes no tax. A father giving his daughter a truck with $9,000 still owed on it, where she takes over the note, creates tax on that $9,000.
Not sure if there is still a lien on the title? We can check the title and tell you what the transfer will actually cost before you commit to anything.
When It Is Not a Donation at All
One situation comes up often enough that it deserves its own warning.
If the owner has died, you are not doing a donation. A dead person cannot appear before a notary to donate anything. That transfer runs through an affidavit of heirship or a succession instead, which is a different process with different paperwork. We cover it in detail in our guide to retitling a vehicle after a loved one passes away, and we handle small successions directly.
The good news is that those transfers are also tax-free under the same policy. The paperwork is simply different, and starting down the donation path first wastes a trip.
Common Questions About Donating a Vehicle in Louisiana
These are the questions we field most frequently at the counter in Covington, answered the way we would answer them in person.
Do I have to pay sales tax on a car given to me in Louisiana?
No, as long as nobody is assuming a loan on it. OMV Policy 52.00 states that sales and use tax is not due on an act of donation where no assumption of mortgage is occurring. If you take over an outstanding balance, tax is due on that principal, unless you are the donor’s spouse.
Can I just sign the title over instead of doing an act of donation?
The title still has to be assigned before a notary, and for a private transfer with no money involved the OMV expects the donation form with it. Signing the back of the title alone, without a notary and without the DPSMV1699, is the most common reason these transfers get rejected.
How many witnesses does an act of donation need?
Two. A donation is an authentic act, which the OMV defines as executed before a notary in the presence of two witnesses. The form has separate signature lines for both. A notarized document with no witnesses does not meet the requirement.
What if the vehicle still has a loan on it?
The lien has to be properly released before the title can transfer. The donation form also asks the donor to warrant that there are no mortgages, liens, or encumbrances, so signing it while a lien is open is a problem. Sort out the payoff or the assumption first.
What value do I put on the form if it is a gift?
The actual value of the vehicle, not zero. The form asks for the value of the property donated, and the OMV uses it. Writing zero on a vehicle that is plainly worth several thousand dollars invites questions you do not need.
Can I donate a vehicle to someone who is not family?
Yes. The form asks for the relationship between donor and donee, but it does not limit donations to relatives. Fill in the actual relationship, and that can be a family tie, a friend, or an organization.
How long do I have to complete the transfer?
Do it promptly. Ownership does not legally move until the donee applies for the title, so until that happens the vehicle is still yours on the OMV’s records, along with whatever comes with that.
Get It Signed and Filed in One Visit
A donation is one of the more pleasant reasons to walk into our office. Somebody is helping somebody else out. The paperwork should not be the hard part.
We are an authorized Public Tag Agent in Covington with a notary on site, which means the DPSMV1699 signing, the title assignment, and the DPSMV1799 filing all happen in the same appointment. You do not need to find two witnesses on your own or make a separate trip to an OMV field office.
Ready to transfer a vehicle to someone? Bring the title, the current registration, and both parties’ IDs. We will handle the rest, including the witnesses.
