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My lienholder is currently holding an out of state certificate of title to my vehicle. How can I apply for Alabama certificate of title when I do not have the outstanding certificate of title to surrender?

My lienholder is currently holding an out of state certificate of title to my vehicle. How can I apply for Alabama certificate of title when I do not have the outstanding certificate of title to surrender?
No certificate of title shall be issued for a vehicle for which the Alabama license plate issuing official has verified that the current owner or operator is listed on a currently effective certificate of title issued by another state and the certificate of title is held by a recorded lienholder. A vehicle normally subject to the Alabama title law would be required to be registered without obtaining an Alabama certificate of title first if all of the following requirements are met:

The registrant is listed as the owner or operator on the out-of-state title.
There is a lien recorded on the out-of-state certificate of title.
The title is being physically held by the lienholder and the title was not issued by one of the states listed below.
The vehicle’s owner must provide to the county licensing official a copy of the certificate of title or a printout of the title record from the state if it issues the title in electronic format. The following is a list of states that sends the valid original title to the owner and not to the lienholder. Applicants from these states must surrender the out-of-state title to the license plate issuing official and their vehicles will be required to be titled in the State of Alabama:

Kentucky
Maryland
Michigan (unless owner authorizes title to be mailed to lienholder)
Minnesota
Missouri
Montana (unless owner authorizes the mailing with signature)
New Jersey
New York
Oklahoma
South Dakota (unless owner indicates that title is to be mailed to lienholder)
Wisconsin
Wyoming (title may be mailed to either the owner or lienholder as requested)
If the owner has requested that a Michigan, Montana, South Dakota or Wyoming title be mailed to the lienholder, the owner must provide documentation from that state that title was mailed to the lienholder in order to be exempt from titling the vehicle in the State of Alabama.

No certificate of title shall be issued for a vehicle for which the Alabama license plate issuing official has verified that the current owner or operator is listed on a currently effective certificate of title issued by another state and the certificate of title is held by a recorded lienholder. A vehicle normally subject to the Alabama title law would be required to be registered without obtaining an Alabama certificate of title first if all of the following requirements are met:

  • The registrant is listed as the owner or operator on the out-of-state title.
  • There is a lien recorded on the out-of-state certificate of title.
  • The title is being physically held by the lienholder and the title was not issued by one of the states listed below.
  • The vehicle’s owner must provide to the county licensing official a copy of the certificate of title or a printout of the title record from the state if it issues the title in electronic format. The following is a list of states that sends the valid original title to the owner and not to the lienholder. Applicants from these states must surrender the out-of-state title to the license plate issuing official and their vehicles will be required to be titled in the State of Alabama:
    • Kentucky
    • Maryland
    • Michigan (unless owner authorizes title to be mailed to lienholder)
    • Minnesota
    • Missouri
    • Montana (unless owner authorizes the mailing with signature)
    • New Jersey
    • New York
    • Oklahoma
    • South Dakota (unless owner indicates that title is to be mailed to lienholder)
    • Wisconsin
    • Wyoming (title may be mailed to either the owner or lienholder as requested)

    If the owner has requested that a Michigan, Montana, South Dakota or Wyoming title be mailed to the lienholder, the owner must provide documentation from that state that title was mailed to the lienholder in order to be exempt from titling the vehicle in the State of Alabama.

Related FAQs in Lien, Titles

In Alabama, a resale certificate is officially called a “Sales Tax License”. To get a copy of your Alabama resale certificate or Sales Tax License, you should:

Login to MAT, locate the appropriate tax account, locate and click “Print tax account license” link. If you need help or cannot access your certificate online contact the Alabama Department of Revenue Sales and Use Tax Division for assistance.

Step by Step Instructions for License Renewal

Yes. In accordance with Rule 810-6-1-.144.03: All buyers of property for resale purposes are entitled to purchase at wholesale, tax-free, the property they resell as regular course of business when they have secured the sales tax license required by law. This rule also applies to retailers located outside Alabama when they have secured the sales tax license required by law in the state in which they are located.

A credit card transaction fee is a charge added to the regular price of an item by a retailer when the purchaser pays for the item using a credit card. Other names for this fee include swipe fee, credit card surcharge, processing fee, service charge, or convenience fee.

These fees are subject to sales and use tax and should be included in the seller’s gross sales on retail transactions when calculating tax due. Example: A sale of tangible personal property totals $100. The customer pays with a credit card and is charged a $3 credit card transaction fee. The total price of $103, including the credit card transaction fee, is subject to sales and use taxes.

A credit card fee, even if separately stated, is part of the retailer’s cost of doing business, and the entire consideration for the sale of tangible personal property is subject to sales and use taxes.

If a transaction consists of only non-taxable goods or services, the credit card transaction fee is not subject to sales and use taxes. Example: A customer is charged $50 for a haircut. The customer pays with a credit card and is charged a $3 credit card transaction fee. Since the haircut is not subject to sales and use taxes, the corresponding credit card transaction fee is not subject to sales and use taxes.

When trying to complete title applications for vessels that have inches listed on the MSO, please use this Vessel Length Chart for conversion purposes.

Vessel Length Chart

Yes, Alabama allows resident individuals to claim a tax credit for income taxes imposed by other states. This credit is claimed on Form 40, Schedule CR. A copy of the other state’s return and a copy of the state Schedule K-1 should be included as documentation of this credit.

If the individual does not file an individual income tax return in the other state or the state provides an exclusion of income, include a proforma return calculating the tax at the other state’s rate and a copy of the state Schedule K-1 as documentation of this credit.

Note: Any Pass-Through Entity tax deducted on the Pass-Through Entity’s federal return, which reduces the taxable income reported on the owner’s K-1, should be added back to compute Alabama taxable income.

No, if the current title is an Alabama ELT there is no cost to print a physical title.

However, once an ELT is printed on physical title paper it can not be printed again. A replacement title application must be applied for if a replacement is needed.