Section 701.34.13. Transfers of vehicles resulting from corporate mergers and other types of corporate transfers.

Corporate mergers often involve the transfer of title to large numbers of vehicles from a merging corporation to a surviving corporation. These transfers generally do not involve the “purchase” of these vehicles, though other transfers of vehicles between corporations may involve purchases of vehicles and thus be subject to use tax. See rule 701—15.20(422,423) for examples of property transfers between corporations which involve mergers without purchases and those nonmerger transactions which involve purchases or transfers that may result in an obligation to pay use tax.