PennDOT Form MV-3: Fair Market Value Verification Guide

What Is PennDOT Form MV-3?

Form MV-3 is a Pennsylvania Department of Transportation (PennDOT) document completed by contracted issuing agents. It verifies the average fair market value of certain motor vehicles when the purchase price listed on title and registration applications (Forms MV-1, MV-4ST, or MV-217A) appears significantly lower than market value.

The form supports compliance with Section 1318 of the Pennsylvania Vehicle Code, which requires issuing agents to verify purchase price information. It also helps the Pennsylvania Department of Revenue monitor transactions that may involve understated values for sales tax purposes.

Download the official Form MV-3 here: Pennsylvania PennDOT Form MV-3 PDF

When Is Form MV-3 Required?

According to the official PennDOT fact sheet (April 2025), Form MV-3 must be completed for passenger vehicles, trucks with a registered weight of 11,000 lbs. and under, motorcycles, and recreational (motor home) vehicles when any of the following apply:

• The purchase price listed on Forms MV-1, MV-4ST, or MV-217A is less than 80% of the average fair market value.
• The vehicle is more than 15 years old and the purchase price is less than $500.
• The vehicle is not listed in a PennDOT-approved publication.

To calculate the 80% threshold, the issuing agent determines the average retail value from an approved guide and multiplies that amount by 0.80.

Approved Publications for Determining Fair Market Value

Issuing agents must use the average retail value from one of the following PennDOT-approved publications:

• N.A.D.A. Official Used Car Guide
• The Automobile Red Book
• The Black Book Official Used Car Guide
• American Used Car Guide
• Kelley Blue Book Used Car Guide

N.A.D.A. and The Automobile Red Book also publish guides for motorcycles and certain other vehicle types. Kelley Blue Book provides a guide for recreational vehicles. If an internet version of any approved publication is used, the agent must print the valuation page and retain it with their records.

Exceptions – When Form MV-3 Is Not Required

Form MV-3 is not required in the following situations:

1. A new vehicle sold to the first retail customer
2. Reconstructed, recovered theft, or specially constructed vehicles
3. Flood vehicles
4. Formerly police or taxi vehicles
5. Lease buyouts by the lessee
6. Vehicles transferred in conjunction with death procedures (including sales by an estate, executor, or administrator) – Form MV-39 or a Short Form Certificate is required instead
7. Trailers, including recreational vehicle travel trailers

Additional alternatives exist in limited cases: a public auction block ticket (containing both the reference guide fair market value and actual purchase price) or a licensed dealer’s bill of sale (also showing both values) may be accepted in place of Form MV-3 when attached to the title application.

How to Complete Form MV-3 – Step-by-Step Procedures?

PennDOT outlines clear procedures for issuing agents:

1. Sections A, B, and C – Completed by the issuing agent using information from Forms MV-1, MV-4ST, or MV-217A. Section A includes vehicle description and purchase price. Section B records the average fair market value and the name of the approved publication used (or notes that the vehicle/value was not listed). Section C captures purchaser information.
2. Section D – Completed by the motor vehicle purchaser or seller. This section requires a detailed explanation of why the purchase price is below 80% of fair market value, how the price was determined for older vehicles under $500, or why the vehicle is not listed in an approved guide.
3. Sections E and F – Signatures of the seller and purchaser must be notarized. For vehicles purchased out-of-state, only the Pennsylvania purchaser’s signature is required; the out-of-state seller’s signature is not needed.

Important: If the purchaser or seller refuses to complete Sections D, E, or F, the issuing agent must refuse to process the transaction. Incomplete applications should not be submitted to PennDOT.

The completed Form MV-3 is submitted to the Bureau of Motor Vehicles together with the related title/registration application.

Relationship to Pennsylvania Sales and Use Tax

While Form MV-3 documents fair market value for PennDOT purposes, the Pennsylvania Department of Revenue independently reviews transactions under its Motor Vehicle Understated Value Program. Sales tax is generally calculated on the higher of the purchase price or fair market value in cases where the reported price appears understated.

Key points from the Department of Revenue:

• Copies of Forms MV-1, MV-3, MV-4ST, and MV-13 filed with PennDOT are not accepted as proof of purchase price or fair market value.
• Acceptable documentation includes a detailed bill of sale, a signed seller’s statement, major repair bills, or a written appraisal from a certified dealer describing the vehicle’s condition.
• Transactions that are not “at arm’s length” (for example, between family members, employers/employees, or related businesses) are more likely to be reviewed and assessed based on fair market value.

For more details on the understated value program, visit the official Pennsylvania Department of Revenue page.

Consequences of Non-Compliance

Issuing agents who fail to properly verify purchase price information face penalties under Section 1318(e) of the Pennsylvania Vehicle Code. Violations are summary offenses punishable by fines of $100–$500 for a first offense and $200–$500 (or imprisonment up to 90 days) for subsequent offenses, in addition to any departmental suspension or revocation of the agent’s authority.

Missing or incomplete MV-3 forms are a common reason for PennDOT to reject title and registration applications and return them for correction.

Where to Obtain Form MV-3 and Related Resources?

The official Form MV-3 is available for free download from PennDOT:

Download PennDOT Form MV-3 (PDF)

Additional official resources include:

• PennDOT Fact Sheet – Motor Vehicle Verification of Fair Market Value by Issuing Agent (April 2025)
• PennDOT Driver and Vehicle Services – Forms and Publications
• PA Department of Revenue – Motor Vehicle Understated Value Program

Frequently Asked Questions

Does every low-price vehicle sale require Form MV-3?
No. The form is required only when the purchase price falls below the 80% threshold (or under $500 for vehicles over 15 years old) or the vehicle is not listed in an approved guide, and none of the listed exceptions apply.

Can a private party complete Form MV-3 without an issuing agent?
No. The form is completed by a PennDOT-authorized issuing agent as part of the title and registration process.

Will submitting Form MV-3 prevent a tax review by the Department of Revenue?
Not necessarily. The Department of Revenue may still request independent verification of the purchase price or fair market value and does not accept the MV-3 itself as sufficient proof.

What happens if the seller or buyer refuses to sign or explain the low price?
The issuing agent must refuse to complete the transaction. The incomplete application cannot be submitted to PennDOT.

Conclusion

Pennsylvania PennDOT Form MV-3 plays an important role in ensuring that vehicle purchase prices reported for titling and registration approximate fair market value. Authorized issuing agents use approved valuation guides to determine when the form is needed, complete the required sections, and obtain notarized explanations from the parties involved. Understanding the 80% rule, the 15-year/$500 threshold, approved publications, and clear exceptions helps buyers, sellers, and agents avoid application rejections and potential sales tax assessments.