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

vehicle tax if the vehicles are either purchased in Texas
or are purchased outside Texas and apportioned into
Texas. Trailers pulled by apportioned tractors and
operated interstate on token plates also qualify for
the exemption.
An interstate motor vehicle includes a truck, truck
tractor or any other motor vehicle with a gross
registered weight in excess of 26,000 pounds (calculated
either separately or in combination with a trailer or
semi-trailer) and which is operated in Texas and some
other state or foreign country. The registration fees are
apportioned if the motor vehicle is registered in a state
or country that is a member of IRP.
Interstate-operated charter buses are exempt
from the Texas motor vehicle tax, regardless of type
of registration.
Units rented by contract for 180 days or less continue
to be subject to motor vehicle rental tax.
Cancelation of Apportioned
Registration
Any unit diverted from interstate use within one year
of purchase in Texas loses the exemption. Any unit
purchased outside of Texas and apportioned in Texas
that is diverted from interstate use within one year of
entry into Texas also loses the exemption. Obtaining
non-apportioned registration may be evidence of a unit
being diverted. The IRP cab card(s) will also indicate
use in Texas.
Leased trucks and trailers regardless of when removed
from interstate use will pay motor vehicle tax. The
owner is responsible for remitting the tax directly to
the Comptroller. The motor vehicle tax is based on the
lessor’s book value.
TERP Registration Surcharge
IRP trucks with apportioned plates pay an annual
10 percent of the registration fee for TERP. The RTS
accounts for this 10 percent registration surcharge that
is remitted to the Comptroller.
Motor Vehicles Transported
Out of State
• Sales for Use Out of State
Sales for Use Out of State
A motor vehicle purchased in Texas for use exclusively
outside Texas is exempt from the motor vehicle sales
tax. To be exempt, the purchaser must not use the
motor vehicle in Texas, except for transportation
directly out of state, and must not title or register the
motor vehicle in Texas. The purchaser should issue the
seller at the time of sale Form 14-312, Texas Motor
Vehicle Sales Tax Exemption Certificate – For Motor
Vehicles Taken Out of State.
Occasionally, a purchaser may be required to obtain a
title for the motor vehicle because of the requirements
of another state or foreign country where the purchaser
will use the vehicle. If the purchaser documents those
requirements, the county TAC can accept a Form 130-U
for a certificate of title only. The motor vehicle should
not be registered in Texas.
If the owner later brings the motor vehicle back into
Texas for use, the owner owes motor vehicle use tax.
Nonprofit Organizations
• Nonprofits Not Exempt
• State or Federal Funds
• Limited Sales Tax Exemption Certificate
Nonprofits Not Exempt
A nonprofit entity is not automatically exempt from
paying motor vehicle tax.
State or Federal Funds
An organization funded by the state or federal
government is not automatically exempt from motor
vehicle tax.
To qualify for exemption from motor vehicle tax, an
organization must be either a public agency or exempt
by a specific statute.
Limited Sales Tax Exemption Certificate
An organization may not use a limited sales tax
exemption certificate, as set forth by Tax Code Chapter
151, to claim an exemption from motor vehicle tax.
Motor Vehicle Tax Guidebook
IV-5