Motor Vehicle Tax Guidebook 2011 - Texas Comptroller of Public ...

Seller-Financed Dealer – A dealer who finances the
sale of motor vehicles from the dealer’s inventory.
Seller-Financed Sale – A retail sale of a motor vehicle
by a dealer licensed under Transportation Code
Chapter 503, in which the dealer collects all or part
of the total consideration in periodic payments and
retains a lien on the motor vehicle until the purchaser
makes all payments.
Shop-Made Vehicle – A shop made vehicle is a motor
vehicle built from components none of which is a
motor vehicle.
Standard Presumptive Value or SPV– The privateparty
transaction value of a motor vehicle as
determined by TxDMV based on an appropriate
regional guidebook of a nationally recognized motor
vehicle value guide service.
Storage Lien – A right to keep possession of property
belonging to another person until a debt for property
storage costs owed is discharged.
Straight-Line Basis – The depreciation of a motor
vehicle by the same amount every year rather than as
a declining percentage of its previous value; also called
straight-line depreciation.
Substitution of Collateral – The process of
substituting a motor vehicle that is being held as
collateral with another motor vehicle of the same or
greater value.
Tax Receipt – See Form 31 RTS Receipt in this
Glossary.
Tax Code Section – Provisions of the Texas Tax Code,
Vernon’s Texas Codes Annotated and supplements.
TERP Surcharge – A charge for the Texas Emissions
Reduction Plan (TERP), as provided by Tax Code
Section 152.0215.
Timber Machine – A self-propelled motor vehicle
specially adapted or modified for use primarily in
timber operations. Timber machine does not include
any self-propelled motor vehicle specifically designed
or adapted for the primary purpose of transporting
timber or timber products.
Title – See Certificate of Title in this Glossary.
Title Owner – The person/entity named as the owner
of a motor vehicle on the Certificate of Title. It also
includes a person/entity who is the legal owner because
of a lease/purchase or conditional sales contract where
the seller retains title until full payment is made.
Title, Assigned – A title of a motor vehicle on which
the previous owner (or a person acting under power of
attorney) signed the back of a title and indicated the
name of the person to whom the motor vehicle was
being transferred.
Title, Negotiable – A title of a motor vehicle that is
free of liens or other encumbrances and can be used to
freely transfer the motor vehicle to another person.
Title, Open – A title of a motor vehicle on which the
previous owner of the motor vehicle (or person acting
under power of attorney) has signed the back of a title,
but has not filled in the name of the person to whom
the motor vehicle is to be transferred.
Titling Trust – A trust whose activities are limited to
owning leased motor vehicles and the related leases.
Re-titling and re-registration of the leased motor
vehicles is not required because the titling trust owns
the motor vehicles. The titling trust is the lessor.
Token Tag or Plate – A license plate for a trailer
towed by a truck tractor where the registration fees are
applied to the pulling unit; also referred to as token
trailer.
Trade Difference – The sales price difference
remaining after deducting the allowance for a motor
vehicle traded by the purchaser on the purchase of
another motor vehicle.
Trade Down – An exchange of a motor vehicle for a
motor vehicle of lesser value.
Trade, Even – An exchange of motor vehicles in which
no consideration other than the exchange of motor
vehicles is involved.
Trade-In Allowance – A credit against the purchase
price of a new motor vehicle when a purchaser trades
in a motor vehicle to the seller. The allowance for the
motor vehicle traded in is the value of the vehicle and
not necessarily the equity in that vehicle.
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Motor Vehicle Tax Guidebook