The Michigan TR-207 bill of sale is the state’s one-page form for documenting a private sale of a non-titled trailer, non-titled watercraft, or snowmobile. The buyer takes the completed form to a Secretary of State branch office to apply for a title or registration, and the sale price recorded on it drives the use tax calculation.
When TR-207 Is the Right Form
TR-207 covers three categories, and only three: non-titled trailers, non-titled watercraft, and snowmobiles. A checkbox at the top of the form asks you to pick which one.1Michigan Secretary of State. Michigan Bill of Sale Form TR-207 The typical situation is a private sale of an older trailer, a homemade trailer, a small watercraft, or a snowmobile that was never formally titled in Michigan, so there is no certificate of title to sign over.
If the item already has a Michigan title, skip TR-207. The seller signs the existing title, and the buyer brings that signed title to the branch office. TR-207 also does not replace a certificate of title for cars, trucks, or motorcycles. And it is a private-sale document; dealers use their own reassignment paperwork.
Filling Out the Form
You can download TR-207 from the Michigan Secretary of State website or pick one up at any branch.1Michigan Secretary of State. Michigan Bill of Sale Form TR-207 Every field matters, because the state uses what you write to create the new ownership record.
Item Description
Check the box for the item type. Enter the year, make, and serial number. TR-207 asks for a serial number, not necessarily a 17-digit VIN; many trailers and snowmobiles have shorter serial numbers stamped on the frame or hull. If a registration already exists on the item, add the registration number and the year of the last decal.
Sale Details and Signatures
Write the date of sale and the selling price. Enter the buyer’s full legal name and mailing address. The seller prints their name, signs, and provides their address. The seller’s signature is what makes the document work. Without it, the branch office will not process the transfer.
Weight Certification for Trailers
Buying a trailer or trailer coach adds one step. Michigan needs the empty scale weight to register a trailer, and TR-207 has a weight certification section at the bottom for that purpose. You have two options: attach the previous registration, which already lists the weight, or have the trailer weighed at a commercial scale where the weighmaster fills in the weight, signs the form, and lists the business name and address.1Michigan Secretary of State. Michigan Bill of Sale Form TR-207 Arriving at the branch without weight documentation for a trailer means a return trip.
What to Bring to the Branch Office
The buyer handles the trip to the Secretary of State. Bring:
- The completed and signed TR-207.
- Proof of Michigan No-Fault insurance where it applies. Trailers and most watercraft do not need No-Fault, but check your coverage for a snowmobile ridden on public land.2Michigan Legislature. Michigan Compiled Laws 500.3101
- Weight documentation for a trailer, either the previous registration or the weighmaster certification on TR-207.
- Payment for the title fee, use tax, and any plate charges.
- Your Michigan driver’s license or state ID.
You can book an appointment through the Secretary of State’s online system, which usually keeps the visit to about 20 minutes. Walk-ins are accepted with longer waits.3Michigan Department of State. Title Transfer and Vehicle Registration
Fees, Use Tax, and the 15-Day Deadline
The title transfer fee is a flat $15. If you also transfer or buy a plate, add $10 to $15. The larger cost is the 6 percent use tax, assessed on the purchase price or the item’s retail value, whichever is higher.3Michigan Department of State. Title Transfer and Vehicle Registration Writing a low price on the bill of sale will not reduce the tax if state records show a higher retail value.
You pay the use tax at the branch when you transfer the title, not separately to the Department of Treasury. The tax applies to transfers between private parties; a dealer sale usually means sales tax was already collected at the point of purchase.
Michigan gives you 15 days from the date of sale to transfer the title. Miss that window and a $15 late fee is added.4Michigan Department of State. Buying, Selling, or Leasing The clock runs from the sale date written on TR-207, so do not let the form sit.
Family Transfer Exemption
Sales between certain relatives are exempt from the 6 percent use tax. Michigan’s qualifying list includes:
- Spouse, parent, child (including adopted), brother, sister, grandparent, and grandchild.
- Stepparent, stepchild, stepbrother, and stepsister, provided the marriage creating the step-relationship was intact at the time of transfer, or the parent died while married. Divorce before the transfer disqualifies the exemption.
- Half-brother and half-sister.
- Father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, and grandparent-in-law.
- Legal ward or legally appointed guardian, documented with a certified guardianship letter.
Aunts, uncles, cousins, nieces, nephews, step-grandparents, former spouses, and common-law partners (unless established before January 1, 1957) do not qualify.5Michigan Department of Treasury. Transferring a Vehicle Title to a Relative Claiming the exemption without qualifying can trigger penalties up to 100 percent of the tax owed, and the Department of Treasury can ask you to document the relationship after the fact.
What Sellers Should Do
The seller’s main task is completing and signing TR-207 accurately, but a few habits protect you after the item changes hands.
Remove your license plate before the buyer takes the item. Michigan law puts that on the seller.
Keep a copy of the signed TR-207 and any record of the sale for at least 18 months. Under Michigan law, a seller with proof of sale is not liable for damages or violations that happen after the sale if the buyer never transfers the title.4Michigan Department of State. Buying, Selling, or Leasing
Write the actual sale price. That figure is what the state uses to assess tax, and understating it to help the buyer save on taxes is fraud that can reach both parties.