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

Active duty military personnel have 60 county working
days from the first use in Texas to title and register a
vehicle. Tax is not due until that time.
Motor Vehicles Previously Titled and
Registered with Tax Paid in Texas
Another state may require a former Texas resident or a
Texas resident living temporarily in the other state to
title a motor vehicle that the resident has previously
registered and paid tax on in Texas. There is no liability
for additional tax when the resident returns to Texas
with the same motor vehicle and presents a copy of
a tax receipt or other document showing that the
taxpayer previously titled or registered that motor
vehicle in the resident’s name in Texas.
Leased Motor Vehicles
Use tax is due on motor vehicles brought into Texas for
public highway use when leased outside of Texas by a
Texas resident or by a person who is domiciled or doing
business in Texas. The tax is the responsibility of the
person bringing the motor vehicle into Texas.
Credit is allowed for legally imposed sales tax paid by
the lessor or the lessee up to the time when the lessee
brings the motor vehicle into Texas. If additional tax is
due to the other state, at the end of the lease the lessee
may apply to the Comptroller for additional credit
(refund).
Calculating Use Tax Due
For retail sales of new and used motor vehicles
involving motor vehicle dealers licensed in other states,
motor vehicle use tax is based on the vehicle’s sales
price less any allowance for trade-in vehicle(s). Tax
paid in the other state reduces the Texas use tax. For
example, if a Texas purchaser traded in a vehicle worth
$6,000 for a $15,000 motor vehicle sold by a licensed
Oklahoma dealer, and paid Oklahoma sales tax, the
Texas purchaser owes Texas use tax as follows:
Example:
Total Sales Price $ 15,000
Less Trade-In – 6,000
Taxable Value $ 9,000
Tax Rate x .0625
Use Tax Due $ 562.50
Less Credit for
Tax Paid to
Oklahoma – 180.00
Net Texas Use Tax $ 382.50
The selling dealer’s signature on the title application
is an acceptable record of the sales price. The county
TAC, however, can request the dealer’s invoice or sales
receipt from the purchaser.
For private-party purchases of used motor vehicles from
out of state for Texas use, the motor vehicle tax requires
an SPV calculation.
New Resident Tax
• Tax Responsibility
• New Resident Requirements
• Motor Vehicles Previously Titled and Registered
With Tax Paid in Texas
• When the New Resident Tax Does Not Apply
• Antique Motor Vehicles
• Military Personnel
Tax Responsibility
Texas law imposes a $90 new resident tax upon any
motor vehicle purchased outside Texas and brought
into Texas by a new resident when the motor vehicle
was previously registered in the new resident’s name
in another state or foreign country, or leased by the
new resident in another state or foreign country prior
to entering Texas. The lessor must have purchased the
motor vehicle out of state.
The tax is the new resident’s responsibility and must be
paid within 20 county working days from the vehicle’s
first use in Texas (60 county working days for active
duty military personnel). The new resident pays the tax
to the county TAC when the owner titles and registers
the motor vehicle.
Any qualifying vehicle brought into Texas within
30 days of a person becoming a new Texas resident
is qualified for the new resident tax, by Comptroller
policy. A vehicle documented to be in transit, but
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Motor Vehicle Tax Guidebook