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

not arriving until after the 30 days still qualifies.
After a person resides in Texas for 30 days, a vehicle
brought into Texas by that person is presumed to have
been brought in after the person has become a Texas
resident. The new resident tax does not apply, and the
person owes the motor vehicle use tax.
If a new resident has not previously registered the
motor vehicle in the new resident’s name in another
state or foreign country, Texas use tax applies. A motor
vehicle leased out of state does not have to be registered
to the lessee.
If the $90 new resident tax is due, the new resident
does not receive any credit for motor vehicle tax paid to
another state or foreign country.
New Resident Requirements
Rule 3.71(b) defines a new resident for tax purposes
as any person, firm, corporation or association moving
into Texas with the intent to live or locate within Texas.
A natural person may demonstrate the necessary intent
to live in Texas by establishing a fixed dwelling place in
Texas, registering to vote in Texas or demonstrating a
legal or economic constraint to live in Texas. A business
entity may demonstrate the necessary intent to locate in
Texas by establishing a fixed place of business in Texas,
advertising that it is located in Texas or demonstrating a
contractual obligation to locate in Texas.
A new resident may also be a resident of other states.
Once residency is established in Texas, however, a
person, firm, corporation or association may not
subsequently become a new resident without showing
that the residency formerly established in Texas was
abandoned.
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 another state to title
a motor vehicle 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 establishing that the taxpayer
previously titled or registered that motor vehicle in the
resident’s name in Texas.
When the New Resident Tax
Does Not Apply
The new resident tax does not apply in the following
situations:
• Texas resident in military service with Texas
indicated as the home state of record;
• motor vehicle brought into Texas for public
highway use by a person or firm already doing
business in Texas; or
• motor vehicle apprehended for improper
registration that is owned or operated by a
person or firm domiciled or doing business
in Texas.
These motor vehicles are subject to the use tax.
Antique Motor Vehicles
New residents who bring antique motor vehicles into
Texas will pay the lesser of the $90 new resident tax or
the use tax on the motor vehicle’s sales price. To qualify
for this tax treatment, the motor vehicle must be at
least 25 years old and a collectors item, used exclusively
for exhibitions, club activities or parades, and may not
carry advertising.
Military Personnel
Military personnel moving to Texas owe either the new
resident tax or motor vehicle use tax.
Military personnel who are new residents to Texas
(as demonstrated by a home of record in another
state) and who bring a motor vehicle into Texas that
was purchased and registered in the military person’s
name in another state or foreign country, owe the new
resident tax. If the new resident has not previously
registered the motor vehicle in the new resident’s
name in another state or foreign country, then Texas
use tax applies.
Military personnel who are Texas residents (as
demonstrated by a Texas home of record) do not
qualify for the new resident provision and owe motor
vehicle use tax on vehicles purchased elsewhere and
brought into Texas.
Motor Vehicle Tax Guidebook
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