Motor Vehicle Tax Guidebook 2011 - Texas Comptroller of Public ...
Motor Vehicle Tax Guidebook 2011 - Texas Comptroller of Public ...
Motor Vehicle Tax Guidebook 2011 - Texas Comptroller of Public ...
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Section III<br />
Specific Provisions<br />
Accessories and Attachments<br />
Affixed to a <strong>Motor</strong> <strong>Vehicle</strong><br />
• <strong>Tax</strong> Due at Time <strong>of</strong> Sale<br />
• Three Situations and <strong>Tax</strong> Consequences<br />
• Accessories/Attachments Affixed<br />
at the Time <strong>of</strong> Sale<br />
• Accessories/Attachments Purchased Separately<br />
• Accessories/Attachments Purchased to<br />
Combine into a Homemade or Shop-Made<br />
<strong>Motor</strong> <strong>Vehicle</strong><br />
<strong>Tax</strong> Due at Time <strong>of</strong> Sale<br />
<strong>Motor</strong> vehicle tax is due on the consideration paid or to<br />
be paid for a motor vehicle, including all accessories or<br />
attachments affixed at the time <strong>of</strong> sale.<br />
Accessories/Attachments Affixed at the<br />
Time <strong>of</strong> Sale<br />
<strong>Motor</strong> vehicle tax is due on the total selling price <strong>of</strong> a<br />
motor vehicle with affixed accessories or attachments.<br />
Example 1:<br />
A customer orders a truck with a tool box and grill<br />
guard accessories attached. The customer pays motor<br />
vehicle tax on the truck, the tool box, grill guard and<br />
any other attached accessories.<br />
Examples <strong>of</strong> accessories include items such as a sideview<br />
mirror, trailer hitch or grill guard.<br />
Examples <strong>of</strong> attachments include a major piece <strong>of</strong><br />
equipment that performs a function, such as a concrete<br />
mixer or an air compressor.<br />
To determine the amount <strong>of</strong> tax due on a motor<br />
vehicle, it is necessary to determine what accessories or<br />
attachments were affixed to the motor vehicle at time <strong>of</strong><br />
purchase. A person may purchase a motor vehicle and<br />
accessories/attachments separately, but then combine<br />
them before the person actually registers the motor<br />
vehicle.<br />
Three Situations and <strong>Tax</strong> Consequences<br />
Three situations can occur with the purchase <strong>of</strong> a motor<br />
vehicle and accessories/attachments:<br />
• accessories/attachments are affixed to the motor<br />
vehicle at the time <strong>of</strong> sale;<br />
• accessories/attachments are purchased separately<br />
from the motor vehicle; or<br />
• accessories/attachments are purchased to<br />
combine into a homemade or shop-made motor<br />
vehicle.<br />
The following sections address each <strong>of</strong> these situations<br />
and the resulting tax consequences.<br />
INVOICE<br />
Ajax <strong>Motor</strong>s<br />
Austin, <strong>Texas</strong><br />
Crew Cab $30,900<br />
Tool Box 350<br />
Grill Guard 750<br />
Total 32,000<br />
<strong>Motor</strong> <strong>Vehicle</strong> Sales <strong>Tax</strong> 6.25% 2,000<br />
Final Total $34,000<br />
Accessories/Attachments Purchased<br />
Separately<br />
When a buyer purchases a motor vehicle and then<br />
purchases unattached accessories separately, motor<br />
vehicle tax is due on the motor vehicle’s selling price.<br />
Limited sales tax is due on the selling price <strong>of</strong> the<br />
unattached accessories. The buyer may purchase the<br />
motor vehicle and the accessories from different sellers<br />
<strong>Motor</strong> <strong>Vehicle</strong> <strong>Tax</strong> <strong>Guidebook</strong><br />
III-1