CHAPTER 152. TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES

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TAX CODE

TITLE 2. STATE TAXATION

SUBTITLE E. SALES, EXCISE, AND USE TAXES

CHAPTER 152. TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 152.001. DEFINITIONS. In this chapter:

(1) "Sale" includes:

(A) an installment and credit sale;

(B) an exchange of property for property or money;

retains title as security for payment of the purchase price;

(D) a transaction in which a motor vehicle is transferred to

another person without payment of consideration and that does not

qualify as a gift under Section 152.025; and

(E) any other closed transaction that constitutes a sale.

(2) "Retail sale" means a sale of a motor vehicle except:

(A) the sale of a new motor vehicle in which the purchaser is a

franchised dealer who is authorized by law and by franchise

agreement to offer the vehicle for sale as a new motor vehicle

and who acquires the vehicle either for the exclusive purpose of

sale in the manner provided by law or for purposes allowed under

Chapter 503, Transportation Code;

(B) the sale of a vehicle other than a new motor vehicle in

which the purchaser is a dealer who holds a dealer's general

distinguishing number issued under Chapter 503, Transportation

Code, and who acquires the vehicle either for the exclusive

purpose of resale in the manner provided by law or for purposes

allowed under Chapter 503, Transportation Code; or

removed from the franchised dealer's inventory for the purpose of

entering into a contract to lease the vehicle to another person

if, immediately after executing the lease contract, the

franchised dealer transfers title of the vehicle and assigns the

lease contract to the lessor of the vehicle.

(3) "Motor Vehicle" includes:

(A) a self-propelled vehicle designed to transport persons or

property on a public highway;

(B) a trailer and semitrailer, including a van, flatbed, tank,

dumpster, dolly, jeep, stinger, auxiliary axle, or converter

gear; and

Code.

(4) "Motor Vehicle" does not include:

(A) a device moved only by human power;

(B) a device used exclusively on stationary rails or tracks;

(D) a mobile office;

(E) a vehicle with respect to which the certificate of title has

been surrendered in exchange for:

(i) a salvage vehicle title issued pursuant to Chapter 501,

Transportation Code;

(ii) a certificate of authority issued pursuant to Chapter 683,

Transportation Code;

(iii) a nonrepairable vehicle title issued pursuant to Chapter

501, Transportation Code;

(iv) an ownership document issued by another state if the

document is comparable to a document issued pursuant to

Subparagraph (i), (ii), or (iii); or

(F) a vehicle that has been declared a total loss by an

insurance company pursuant to the settlement or adjustment of a

claim.

(5) "Rental" means:

(A) an agreement by the owner of a motor vehicle to give for not

longer than 180 days the exclusive use of that vehicle to another

for consideration;

(B) an agreement by the original manufacturer of a motor vehicle

to give exclusive use of the motor vehicle to another for

consideration; or

another for re-rental purposes.

(6) "Lease" means an agreement, other than a rental, by an owner

of a motor vehicle to give for longer than 180 days exclusive use

of the vehicle to another for consideration.

(7) "Public agency" means:

(A) a department, commission, board, office, institution, or

other agency of this state or of a county, city, town, school

district, hospital district, water district, or other special

district or authority or political subdivision created by or

under the constitution or the statutes of this state; or

(B) an unincorporated agency or instrumentality of the United

States.

(8) "Gross rental receipts" means value received or promised as

consideration to the owner of a motor vehicle for rental of the

vehicle, but does not include:

(A) separately stated charges for insurance;

(B) charges for damages to the motor vehicle occurring during

the rental agreement period;

of the motor vehicle; or

(D) discounts.

(9) "Owner of a motor vehicle" means:

(A) a person named in the certificate of title as the owner of

the vehicle; or

(B) a person who has the exclusive use of a motor vehicle by

reason of a rental and holds the vehicle for re-rental.

(10) "Orthopedically handicapped person" means a person who

because of a physical impairment is unable to operate or

reasonably be transported in a motor vehicle that has not been

specially modified.

(11) "Volunteer fire department" means a company, department, or

association whose members receive no or nominal compensation and

which is organized for the purpose of answering fire alarms and

extinguishing fires or answering fire alarms, extinguishing

fires, and providing emergency medical services.

(12) "Motor vehicle used for religious purposes" means a motor

vehicle that is:

(A) designed to carry more than six passengers;

(B) sold to, rented to, or used by a church or religious

society;

to and from a church or religious service or meeting; and

(D) not registered as a passenger vehicle and not used primarily

for the personal or official needs or duties of a minister.

(13) "Farm machine" means a self-propelled motor vehicle

specially adapted for use in the production of crops or rearing

of livestock, including poultry, and use in feedlots and includes

a self-propelled motor vehicle specially adapted for applying

plant food materials, agricultural chemicals, or feed for

livestock. "Farm machine" does not include any self-propelled

motor vehicle specifically designed or specially adapted for the

sole purpose of transporting agricultural products, plant food

materials, agricultural chemicals, or feed for livestock.

(14) "Nonprofit" means:

(A) organized as a nonprofit corporation under the Texas

Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes); or

(B) organized and operated in a way that does not result in

accrual of distributable profits, realization of private gain

resulting from payment of compensation other than reasonable

compensation for services rendered by persons who are not members

of the organization, or realization of any other form of private

gain.

(15) "Seller-financed sale" means a retail sale of a motor

vehicle by a dealer licensed under Chapter 503, Transportation

Code, in which the seller collects all or part of the total

consideration in periodic payments and retains a lien on the

motor vehicle until all payments have been received. The term

does not include a:

(A) retail sale of a motor vehicle in which a person other than

the seller provides the consideration for the sale and retains a

lien on the motor vehicle as collateral;

(B) lease; or

(16) "Mobile office" means a trailer designed to be used as an

office, sales outlet, or other workplace.

(17) "Lessor" means a person who acquires title to a new motor

vehicle for the purpose of leasing the vehicle to another person.

(18) "New motor vehicle" means a motor vehicle that, without

regard to mileage, has not been the subject of a retail tax.

(19) "Franchised dealer" has the meaning assigned the term by

Chapter 503, Transportation Code.

Acts 1981, 67th Leg., p. 1586, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, Sec.

5(c), eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 3211, ch. 553,

Sec. 1, 2, eff. Sept. 1, 1983; Acts 1989, 71st Leg., ch. 606,

Sec. 4, eff. Jan. 1, 1990; Acts 1991, 72nd Leg., ch. 524, Sec. 2,

eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 29, Sec. 1, eff.

Oct. 1, 1993; Acts 1993, 73rd Leg., ch. 169, Sec. 3, eff. Aug.

30, 1993; Acts 1993, 73rd Leg., ch. 587, Sec. 18, eff. Oct. 1,

1993; Acts 1995, 74th Leg., ch. 76, Sec. 17.01(49), eff. Sept. 1,

1995; Acts 1995, 74th Leg., ch. 1015, Sec. 1, eff. Jan. 1, 1996;

Acts 1997, 75th Leg., ch. 165, Sec. 30.251, eff. Sept. 1, 1997;

Acts 1997, 75th Leg., ch. 1040, Sec. 26, eff. Oct. 1, 1997; Acts

2003, 78th Leg., ch. 1325, Sec. 17.08, eff. Sept. 1, 2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

686, Sec. 1, eff. September 1, 2009.

Sec. 152.002. TOTAL CONSIDERATION. (a) "Total consideration"

means the amount paid or to be paid for a motor vehicle and its

accessories attached on or before the sale, without deducting:

(1) the cost of the motor vehicle;

(2) the cost of material, labor or service, interest paid, loss,

or any other expense;

(3) the cost of transportation of the motor vehicle before its

sale; or

(4) the amount of manufacturers' or importers' excise tax

imposed on the motor vehicle by the United States.

(b) "Total consideration" does not include:

(1) a cash discount;

(2) a full cash or credit refund to a customer of the sales

price of a motor vehicle returned to the seller;

(3) the amount charged for labor or service rendered in

installing, applying, remodeling, or repairing the motor vehicle

sold;

(4) a financing, carrying, or service charge or interest on

credit extended on a motor vehicle sold under a conditional sale

or other deferred payment contract;

(5) the value of a motor vehicle taken by a seller as all or a

part of the consideration for sale of another motor vehicle,

including any cash payment to the buyer under Section 348.404,

Finance Code;

(6) a charge for transportation of the motor vehicle after a

sale;

(7) motor vehicle inventory tax; or

(8) an amount made available to the customer under Subchapter G,

Chapter 382, Health and Safety Code.

leasing motor vehicles, who obtains the certificate of title to a

motor vehicle, and who uses that motor vehicle for business or

personal purposes may deduct its fair market value from the total

consideration paid for a replacement vehicle if:

(1) the person obtains the certificate of title to the

replacement motor vehicle;

(2) the person uses the replacement motor vehicle for business

or personal purposes; and

(3) the replaced motor vehicle is offered for sale.

(d) A person who holds a vehicle lessor license under Chapter

2301, Occupations Code, or is specifically not required to obtain

a lessor license under Section 2301.254(a) of that code may

deduct the fair market value of a replaced motor vehicle that has

been leased for longer than 180 days and is titled to another

person if:

(1) either person:

(A) holds a beneficial ownership interest in the other person of

at least 80 percent; or

(B) acquires all of its vehicles exclusively from franchised

dealers whose franchisor shares common ownership with the other

person; and

(2) the replaced motor vehicle is offered for sale.

(e) A person who is a motor vehicle owner, is in the business of

renting motor vehicles, and holds a permit may deduct the fair

market value of a replaced motor vehicle that is titled to

another person if:

(1) either person:

(A) holds a beneficial ownership interest in the other person of

at least 80 percent; or

(B) acquires all of its vehicles exclusively from franchised

dealers whose franchisor shares common ownership with the other

person; and

(2) the replaced motor vehicle is offered for sale.

(f) Notwithstanding Subsection (a), the total consideration of a

used motor vehicle is the amount on which the tax is computed as

provided by Section 152.0412.

Acts 1981, 67th Leg., p. 1587, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1995, 74th Leg., ch. 945, Sec. 5, eff. Jan.

1, 1996; Acts 1999, 76th Leg., ch. 1042, Sec. 2, eff. Aug. 30,

1999; Acts 1999, 76th Leg., ch. 1467, Sec. 2.30, eff. Oct. 1,

1999; Acts 2001, 77th Leg., ch. 1263, Sec. 26, eff. Oct. 1, 2001;

Acts 2003, 78th Leg., ch. 1276, Sec. 14A.816, eff. Sept. 1, 2003.

Amended by:

Acts 2006, 79th Leg., 3rd C.S., Ch.

6, Sec. 1, eff. September 1, 2006.

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 1.08, eff. June 8, 2007.

Sec. 152.003. DUTIES OF COMPTROLLER. (a) The comptroller may:

(1) supervise the collection of taxes imposed by this chapter;

and

(2) establish rules for the determination of taxable value of

motor vehicles and the administration of this chapter.

(b) The comptroller shall furnish a copy of the rules to each

county tax assessor-collector.

the rules authorized by this section to the determination of

taxable value of each motor vehicle purchased in the state or

taxable under the use tax levied by this chapter.

Acts 1981, 67th Leg., p. 1588, ch. 389, Sec. 1, eff. Jan. 1,

1982.

SUBCHAPTER B. IMPOSITION OF TAX

Sec. 152.021. RETAIL SALES TAX. (a) A tax is imposed on every

retail sale of every motor vehicle sold in this state. Except as

provided by this chapter, the tax is an obligation of and shall

be paid by the purchaser of the motor vehicle.

(b) The tax rate is 6-1/4 percent of the total consideration.

Acts 1981, 67th Leg., p. 1588, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1,

Sec. 6, eff. Aug. 1, 1984; Acts 1987, 70th Leg., 2nd C.S., ch. 5,

art. 6, Sec. 1; Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec.

16.02, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 29, Sec. 2,

eff. Oct. 1, 1993; Acts 1995, 74th Leg., ch. 1015, Sec. 2, eff.

Jan. 1, 1996.

For expiration of this section, see Subsection (c).

Sec. 152.0215. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. (a)

Except as provided by Subsection (a-1), a surcharge is imposed on

every retail sale, lease, or use of every on-road diesel motor

vehicle that is over 14,000 pounds and that is sold, leased, or

used in this state. The amount of the surcharge for a vehicle of

a model year 1996 or earlier is 2.5 percent of the total

consideration and for a vehicle of a model year 1997 or later,

one percent of the total consideration.

(a-1) The surcharge does not apply to a recreational vehicle, as

that term is defined by Section 522.004(b), Transportation Code,

that is not held or used for the production of income.

(b) The surcharge shall be collected at the same time and in the

same manner and shall be administered and enforced in the same

manner as the tax imposed under this chapter. The comptroller by

rule shall adopt any additional procedures needed for the

collection, administration, and enforcement of the surcharge

authorized by this section and shall deposit all remitted

surcharges to the credit of the Texas emissions reduction plan

fund.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 3, eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 22, eff.

July 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

835, Sec. 1, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

1125, Sec. 18, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 2.14, eff. June 8, 2007.

Acts 2009, 81st Leg., R.S., Ch.

1125, Sec. 19, eff. September 1, 2009.

Sec. 152.022. TAX ON MOTOR VEHICLE PURCHASED OUTSIDE THIS STATE.

(a) A use tax is imposed on a motor vehicle purchased at retail

sale outside this state and used on the public highways of this

state by a Texas resident or other person who is domiciled or

doing business in this state.

(b) The tax rate is 6-1/4 percent of the total consideration.

Acts 1981, 67th Leg., p. 1588, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1,

Sec. 7, eff. Aug. 1, 1984; Acts 1987, 70th Leg., 2nd C.S., ch. 5,

art. 6, Sec. 2; Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec.

16.03, eff. Sept. 1, 1991.

Sec. 152.023. TAX ON MOTOR VEHICLE BROUGHT INTO STATE BY NEW

TEXAS RESIDENT. (a) A use tax is imposed on a new resident of

this state who brings into this state a motor vehicle:

(1) that has been registered previously in the new resident's

name in any other state or foreign country; or

(2) that the person leased in another state or foreign country.

(b) Except as provided by Subsection (b-1), the tax is $90 for

each vehicle.

(b-1) The tax on a motor vehicle eligible to be issued

exhibition vehicle specialty license plates under Section

504.502, Transportation Code, is equal to the lesser of $90 or

6.25 percent of the total consideration.

imposed by Section 152.022.

Acts 1981, 67th Leg., p. 1589, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1999, 76th Leg., ch. 1414, Sec. 1, eff.

Sept. 1, 1999.

Amended by:

Acts 2005, 79th Leg., Ch.

700, Sec. 1, eff. September 1, 2005.

Sec. 152.024. TAX ON AN EVEN EXCHANGE OF MOTOR VEHICLES. (a) A

tax is imposed on each party to a transaction involving the even

exchange of two motor vehicles.

(b) The tax on each party is $5.

accomplished until the taxes have been paid.

Acts 1981, 67th Leg., p. 1589, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 152.025. TAX ON GIFT OF MOTOR VEHICLE. (a) A tax is

imposed on the recipient of a gift of a motor vehicle. This

section applies only if the person receiving the motor vehicle:

(1) receives the vehicle from:

(A) the person's:

(i) spouse;

(ii) parent or stepparent;

(iii) grandparent or grandchild;

(iv) child or stepchild;

(v) sibling; or

(vi) guardian; or

(B) a decedent's estate; or

(2) is exempt from federal income taxation under Section 501(a),

Internal Revenue Code of 1986, by being listed as an exempt

organization under Section 501(c)(3) of that code, and the

vehicle will be used for the purposes of the organization.

(b) The tax is $10.

Acts 1981, 67th Leg., p. 1589, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

686, Sec. 2, eff. September 1, 2009.

Sec. 152.026. TAX ON GROSS RENTAL RECEIPTS. (a) A tax is

imposed on the gross rental receipts from the rental of a rented

motor vehicle.

(b) The tax rate is 10 percent of the gross rental receipts from

the rental of a rented motor vehicle for 30 days or less and

6-1/4 percent of the gross rental receipts from the rental of a

rented motor vehicle for longer than 30 days.

stolen motor vehicle, the total amount of gross rental receipts

tax paid by the owner, as defined by Section 152.001(9)(A) of

this code, on a motor vehicle registered under Section 152.061 of

this code may not be less than an amount equal to the tax that

would be imposed by Section 152.021 or 152.022 of this code but

for Subsection (d) of this section.

(d) The taxes imposed by Sections 152.021 and 152.022 of this

code are not due on a motor vehicle as long as it is registered

as a rental vehicle under Section 152.061 of this code.

Acts 1981, 67th Leg., p. 1589, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1,

Sec. 8, eff. Aug. 1, 1984; Acts 1987, 70th Leg., 2nd C.S., ch. 5,

art. 6, Sec. 3; Acts 1991, 72nd Leg., ch. 16, Sec. 17.04, eff.

Aug. 26, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 16.04,

eff. Sept. 1, 1991.

Sec. 152.027. TAX ON METAL DEALER PLATES. (a) A use tax is

imposed on each person to whom is issued a metal dealer's plate

authorized by Chapter 503, Transportation Code.

(b) The tax is $25 for each plate issued.

imposed by this chapter.

Acts 1981, 67th Leg., p. 1589, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1,

Sec. 9, eff. Aug. 1, 1984; Acts 1997, 75th Leg., ch. 165, Sec.

30.252, eff. Sept. 1, 1997.

Sec. 152.028. USE TAX ON MOTOR VEHICLE BROUGHT BACK INTO STATE.

(a) A use tax is imposed on the operator of a motor vehicle that

was purchased tax-free under Section 152.092 of this code and

that is brought back into this state for use on the public

highways of this state. The tax is imposed at the time the motor

vehicle is brought back into this state.

(b) The tax rate is 6-1/4 percent of the total consideration.

Added by Acts 1983, 68th Leg., p. 722, ch. 167, Sec. 2, eff. May

20, 1983. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art.

1, Sec. 10, eff. Aug. 1, 1984; Acts 1987, 70th Leg., 2nd C.S.,

ch. 5, art. 6, Sec. 4; Acts 1991, 72nd Leg., 1st C.S., ch. 5,

Sec. 16.05, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1040,

Sec. 27, eff. Oct. 1, 1997.

SUBCHAPTER C. COLLECTION OF TAXES

Sec. 152.041. GENERAL COLLECTION PROCEDURE. (a) The tax

assessor-collector of the county in which an application for

registration or for a Texas certificate of title is made shall

collect taxes imposed by this chapter, subject to Section

152.0412, unless another person is required by this chapter to

collect the taxes.

(b) Except as provided by Section 152.069, the tax

assessor-collector may not accept an application unless the tax

and any penalty is paid.

the tax imposed by Section 152.021 is due on the 20th working day

after the date the motor vehicle is delivered to the purchaser.

(d) Except as provided by Subsection (f), the tax imposed by

Section 152.022 is due on the 20th working day after the date the

motor vehicle is brought into this state.

(e) If a motor vehicle title applicant has paid the tax to the

seller who is required by this chapter to collect the tax and the

seller has failed to remit the tax to the county tax

assessor-collector, the tax assessor-collector may accept

application for title to the motor vehicle without the payment of

additional tax by the applicant. Before title to the motor

vehicle may be issued under these circumstances, the motor

vehicle title applicant must present satisfactory documentation

to the tax assessor-collector that the tax was paid. The county

tax assessor-collector shall notify the comptroller in writing of

the seller's failure to remit the tax. The notice must:

(1) be made before the 31st day after the date the application

for title is accepted;

(2) contain the name and address of the seller; and

(3) include any documentation of the payment of the tax provided

to the county tax assessor-collector by the motor vehicle title

applicant.

(f) The tax imposed by Section 152.021 or 152.022 on a motor

vehicle designed for commercial use is due on the 20th working

day after the date the motor vehicle is equipped with a body or

other equipment that enables the motor vehicle to be eligible to

be registered under the Transportation Code.

Acts 1981, 67th Leg., p. 1589, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1983, 68th Leg., p. 455, ch. 93, Sec. 11,

eff. Sept. 1, 1983; Acts 1993, 73rd Leg., ch. 29, Sec. 3, eff.

Oct. 1, 1993; Acts 1999, 76th Leg., ch. 1467, Sec. 2.31, eff.

Oct. 1, 1999; Acts 2001, 77th Leg., ch. 1263, Sec. 27, eff. Sept.

1, 2001.

Amended by:

Acts 2006, 79th Leg., 3rd C.S., Ch.

6, Sec. 2, eff. September 1, 2006.

Sec. 152.0411. COLLECTION BY SELLERS. (a) Except as provided

by this section, a seller who makes a sale subject to the sales

tax imposed by Section 152.021 shall add the amount of the tax to

the sales price, and when the amount of the tax is added:

(1) it is a debt of the purchaser to the seller until paid; and

(2) if unpaid, it is recoverable at law in the same manner as

the original sales price.

(b) The seller shall collect the tax from the purchaser and

remit it to the tax assessor-collector in the time and manner

provided by law.

to be titled and registered in Texas. If a purchaser intends to

the terms of Section 152.092.

(d) This section does not apply to a seller-financed sale.

(e) This section applies only to a sale in which the seller is a

motor vehicle dealer who holds a dealer license issued under

Chapter 503, Transportation Code, or Chapter 2301, Occupations

Code.

(f) This section does not apply to the sale of a motor vehicle

with a gross weight in excess of 11,000 pounds. The seller of a

motor vehicle with a gross weight in excess of 11,000 pounds

shall maintain records of the sale in the manner and form, and

containing the information, required by the comptroller.

Added by Acts 1995, 74th Leg., ch. 1015, Sec. 3, eff. Jan. 1,

1996. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.253, eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1040, Sec. 28, eff. Oct.

1, 1997; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.817, eff. Sept.

1, 2003.

Sec. 152.0412. STANDARD PRESUMPTIVE VALUE; USE BY TAX

ASSESSOR-COLLECTOR. (a) In this section, "standard presumptive

value" means the private-party transaction value of a motor

vehicle, as determined by the Texas Department of Motor Vehicles

based on an appropriate regional guidebook of a nationally

recognized motor vehicle value guide service, or based on another

motor vehicle guide publication that the department determines is

appropriate if a private-party transaction value for the motor

vehicle is not available from a regional guidebook described by

this subsection.

(b) If the amount paid for a motor vehicle subject to the tax

imposed by this chapter is equal to or greater than 80 percent of

the standard presumptive value of the vehicle, a county tax

assessor-collector shall compute the tax on the amount paid.

imposed by this chapter is less than 80 percent of the standard

presumptive value of the vehicle, a county tax assessor-collector

shall compute the tax on the amount that is equal to 80 percent

of the standard presumptive value of the vehicle, unless the

purchaser establishes the valuation of the vehicle as provided by

Subsection (d).

(d) A county tax assessor-collector shall compute the tax

imposed by this chapter on the valuation of a motor vehicle if

the valuation is shown on:

(1) documentation, including a receipt or invoice, provided by

the seller to the purchaser of the vehicle, but only if the

seller is a motor vehicle dealer operating under Subchapter B,

Chapter 503, Transportation Code, or under similar regulatory

requirements of another state; or

(2) an appraisal certified by an adjuster licensed under Chapter

4101, Insurance Code, by a motor vehicle dealer operating under

Subchapter B, Chapter 503, Transportation Code, or by an adjuster

or motor vehicle dealer licensed or operating under similar

regulatory requirements of another state.

(d-1) An appraisal described by Subsection (d)(2):

(1) must be on a form prescribed by the comptroller for that

purpose; and

(2) must be obtained by the purchaser of the vehicle not later

than the 20th working day after the date the motor vehicle is

delivered to the purchaser or is brought into this state, as

applicable.

(e) On request, a motor vehicle dealer operating under

Subchapter B, Chapter 503, Transportation Code, or under similar

regulatory requirements of another state shall provide a

certified appraisal of the valuation of a motor vehicle. The

comptroller by rule shall establish a fee that a dealer may

charge for providing the certified appraisal. The county tax

assessor-collector shall retain a copy of a certified appraisal

received under this section for a period prescribed by the

comptroller.

(f) The Texas Department of Motor Vehicles shall maintain

information on the standard presumptive values of motor vehicles

as part of the department's registration and title system. The

department shall update the information at least quarterly each

calendar year and publish, electronically or otherwise, the

updated information.

(g) This section does not apply to a transaction described by

Section 152.024 or 152.025.

(h) This section does not apply to a motor vehicle disposed of

in accordance with Chapter 2303, Occupations Code, or Chapter 70,

Property Code, or sold by a federal, state, or local governmental

entity at public auction, including an auction authorized by

Chapter 683, Transportation Code.

(i) This section does not apply to a motor vehicle that is

eligible for a specialty license plate under Section 504.501,

Transportation Code.

(j) The requirements of Section 520.031, Transportation Code,

continue to apply to a transferee of a used motor vehicle who

obtains an appraisal under Subsection (d)(2), and obtaining an

appraisal does not modify those requirements.

Added by Acts 2006, 79th Leg., 3rd C.S., Ch.

6, Sec. 3, eff. October 1, 2006.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

825, Sec. 1, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

933, Sec. 3K.08, eff. September 1, 2009.

Sec. 152.042. COLLECTION OF TAX ON METAL DEALER PLATES. A

person required to pay the tax imposed by Section 152.027 shall

pay the tax to the Texas Department of Motor Vehicles, and the

department may not issue the metal dealer's plates until the tax

is paid.

Acts 1981, 67th Leg., p. 1589, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1995, 74th Leg., ch. 165, Sec. 22(70), eff.

Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

933, Sec. 3K.09, eff. September 1, 2009.

Sec. 152.043. COLLECTION OF TAX ON MOTOR VEHICLES OPERATED BY

NONRESIDENTS. A person doing business in this state who

registers a motor vehicle under Section 502.054, Transportation

Code, shall pay the tax imposed by Section 152.022 of this code

to the comptroller on or before the day the motor vehicle is

brought into Texas.

Acts 1981, 67th Leg., p. 1590, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.254, eff.

Sept. 1, 1997.

Sec. 152.044. PAYMENT BY SELLER. (a) If the comptroller on an

audit of the records of a seller finds that the amount of tax due

was incorrectly reported on a joint statement and that the amount

of tax paid was less than the amount due, the seller and

purchaser are jointly and severally liable for the amount of the

tax determined to be due.

(b) The comptroller shall ascertain compliance with the terms of

this section. If the comptroller on an audit of the records of a

motor vehicle dealer finds that the documents necessary to title

and register a motor vehicle in the name of the purchaser of the

motor vehicle have not been executed and delivered to the tax

assessor-collector, together with tax due, if any, the motor

vehicle dealer is liable for the amount of the tax due, plus

penalty and interest, if any.

Acts 1981, 67th Leg., p. 1590, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1993, 73rd Leg., ch. 587, Sec. 19, eff.

Oct. 1, 1993; Acts 1995, 74th Leg., ch. 1015, Sec. 4, eff. Jan.

1, 1996.

Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS. (a)

Except as inconsistent with this chapter and rules adopted under

this chapter, an owner of a motor vehicle subject to the tax on

gross rental receipts shall report and pay the tax to the

comptroller in the same manner as the Limited Sales, Excise and

Use Tax is reported and paid by retailers under Chapter 151 of

this code.

(b) The owner shall add the tax to the rental charge, and when

added, the tax is:

(1) a part of the rental charge;

(2) a debt owed to the motor vehicle owner by the person renting

the vehicle; and

(3) recoverable at law in the same manner as the rental charge.

vehicle for any unpaid gross rental receipts tax.

Acts 1981, 67th Leg., p. 1590, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec.

16.06, eff. Sept. 1, 1991.

Sec. 152.046. CHANGE IN TAX STATUS OF MOTOR VEHICLE. (a) If

the owner, as defined by Section 152.001(9)(A) of this code, of a

motor vehicle registered as a rental vehicle ceases to use the

vehicle for rental, the owner shall report and remit on the next

report required to be filed with the comptroller by Section

152.045(a) of this code any unpaid portion of gross rental

receipts tax imposed by Section 152.026 of this code.

(b) An owner of a motor vehicle on which the motor vehicle sales

or use tax has been paid who subsequently uses the vehicle for

rental shall collect the gross rental receipts tax imposed by

this chapter from the person renting the vehicle. The owner may

credit an amount equal to the motor vehicle sales or use tax paid

by the owner to the comptroller against the amount of gross

rental receipts due. This credit is not transferable and cannot

be applied against tax due and payable from the rental of another

vehicle belonging to the same owner.

under Section 152.026(c) of this code only, an owner of a motor

vehicle on which the tax on gross rental receipts is imposed may

credit against the amount of gross rental receipts due an amount

equal to the tax on gross rental receipts the owner has paid to

any other state. This credit is not transferable and cannot be

applied against tax due and payable from the rental of another

vehicle belonging to the same owner.

Acts 1981, 67th Leg., p. 1590, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 152.047. COLLECTION OF TAX ON SELLER-FINANCED SALE. (a)

Except as inconsistent with this chapter and rules adopted under

this chapter, the seller of a motor vehicle shall report and pay

the tax imposed on a seller-financed sale to the comptroller on

the seller's receipts from seller-financed sales in the same

manner as the sales tax is reported and paid by a retailer under

Sections 151.401, 151.402, 151.405, 151.406, 151.409, 151.423,

151.424, and 151.425.

(b) If a note, mortgage, account receivable, or other document

evidencing the purchaser's indebtedness to the seller of a

vehicle sold subject to a seller-financed sale does not bear

interest, it will be conclusively presumed that the total

consideration for the sale is principal.

evidencing the purchaser's indebtedness to the seller of a

vehicle sold subject to a seller-financed sale bears interest, it

is conclusively presumed that interest accrues and is paid by the

purchaser on a straight line basis.

(d) The seller shall add the tax imposed on a seller-financed

sale to the sales price of the vehicle sold, and when added, the

tax is:

(1) a part of the sales price;

(2) a debt owed to the seller by the purchaser; and

(3) recoverable at law in the same manner as the sales price.

(e) Regardless of the accounting method used by the seller, the

seller shall collect and pay the tax imposed on a seller-financed

sale to the comptroller as the seller receives the proceeds of

the sale.

(f) If the seller fails to apply, not later than the 60th day

after the date the motor vehicle is delivered to the purchaser,

for registration and a Texas certificate of title for a motor

vehicle sold in a seller-financed sale in accordance with Section

152.069, the seller is liable for all unpaid tax on the total

consideration, and the tax is due and must be sent to the

comptroller with the first report after the expiration of the

prescribed period.

(g) If a seller factors, assigns, or otherwise transfers the

right to receive payments, all unpaid tax is due on the total

consideration not reported at the time the agreement is factored,

assigned, or otherwise transferred. The seller shall report and

submit the tax in the report period in which the right to receive

the payment is factored, assigned, or otherwise transferred. The

seller may not take a deduction in the amount of tax due if a

transfer at a discount is made.

(g-1) Subsection (g) does not apply to a transaction by a

dealer, as defined by Section 503.001, Transportation Code, in

which the dealer:

(1) sells a purchaser's account to a person registered under

Section 152.0475 as a related finance company; or

(2) grants a security interest in a purchaser's account but

retains custody and control of the account and the right to

receive payments in the absence of a default under the security

agreement.

(h) The comptroller may proceed against the purchaser in a

seller-financed sale for the amount of any tax not paid by the

purchaser.

(i) The comptroller shall adopt rules and promulgate forms

necessary to implement this section.

Added by Acts 1993, 73rd Leg., ch. 29, Sec. 4, eff. Oct. 1, 1993.

Amended by Acts 2001, 77th Leg., ch. 1263, Sec. 28, eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

191, Sec. 1, eff. July 1, 2007.

Sec. 152.0472. DETERMINATION OF WHETHER LOAN IS FACTORED,

ASSIGNED, OR TRANSFERRED. (a) A seller is not considered to

have factored, assigned, or transferred a loan under Section

152.047(g) if:

(1) a loan through a seller is pledged as security for the sale

of bonds:

(A) to a qualified institutional buyer, as that term is defined

by 17 C.F.R. Section 230.144A, that is not affiliated to the

seller;

(B) to an institutional accredited investor, as that term is

defined by 17 C.F.R. Section 230.501(a)(1), (2), (3), or (7),

that is not affiliated to the seller; or

(2) the right to receive payments and the risk of loss on

nonpayment remains with the seller or an affiliated collection

entity acting as agent of the seller; and

(3) bondholders receive only interest and principal.

(b) Notwithstanding Subsection (a), the seller may elect to pay

all unpaid tax imposed under this chapter on the total

consideration. A seller that makes this election is entitled to

a credit or reimbursement for the taxes paid under this chapter

on the remaining unpaid balance of the contract for which the

seller has not received payment or has not otherwise collected

the tax due. The seller shall take the tax credit or

reimbursement on the seller's seller-finance return. The tax

credit or reimbursement does not accrue interest.

Added by Acts 2007, 80th Leg., R.S., Ch.

931, Sec. 8, eff. June 15, 2007.

Sec. 152.0475. REGISTRATION OF RELATED FINANCE COMPANY. (a)

"Related finance company" means a person in which at least 80

percent of the ownership is identical to the ownership of a

dealer, as defined by Section 503.001, Transportation Code.

(b) The comptroller shall establish a registration system for

related finance companies under this section.

comptroller on a form prescribed by the comptroller. The

comptroller shall make the forms available to the public.

(d) The comptroller may charge an annual fee for each

registration. The fee may not exceed $1,500.

(e) The comptroller may adopt rules to implement this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

191, Sec. 2, eff. July 1, 2007.

Sec. 152.048. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. (a) All

gross receipts of a seller required to obtain a permit under

Section 152.065 are presumed to be subject to the provisions of

this code.

(b) The presumption provided by Subsection (a) does not apply to

receipts:

(1) on which a tax imposed under other law is computed and paid

to the comptroller; or

(2) for which a properly completed resale or exemption

certificate is accepted by the seller.

by credible evidence that the receipts are not from a

seller-financed sale or that the tax on those receipts has been

sent to the comptroller.

Added by Acts 1993, 73rd Leg., ch. 29, Sec. 4, eff. Oct. 1, 1993.

SUBCHAPTER D. TAX ENFORCEMENT PROCEDURES

Sec. 152.061. REGISTRATION OF MOTOR VEHICLE PURCHASED FOR

RENTAL. (a) An owner of a motor vehicle purchased for rental

may furnish the county tax assessor-collector a rental

certificate in lieu of the motor vehicle sales or use tax imposed

by Sections 152.021 and 152.022 of this code. The county tax

assessor-collector shall accept the motor vehicle for

registration and issue a receipt for the license and title

application.

(b) A rental certificate may be furnished by:

(1) a dealer licensed under Chapter 503, Transportation Code; or

(2) the owner if the vehicle is for use in a rental business

that rents at least five different motor vehicles within any

12-month period.

comptroller and must contain:

(1) the name, address, and signature of the owner;

(2) the owner's or dealer's license number or a statement by the

owner that the rental business of the owner meets the activity

requirements of Subsection (b) of this section;

(3) the motor vehicle identification number; and

(4) the amount of total consideration for the motor vehicle and

the amount of tax that would be due if the rental certificate had

not been furnished.

Acts 1981, 67th Leg., p. 1591, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.255, eff.

Sept. 1, 1997.

Sec. 152.062. REQUIRED STATEMENTS. (a) The persons obligated

by this chapter to pay taxes on the transaction shall file a

joint statement with the tax assessor-collector of the county in

which the application for registration and for a Texas

certificate of title is made.

(b) The statement must be in the following form:

(1) if a motor vehicle is sold, the seller and purchaser shall

make a joint statement of the then value in dollars of the total

consideration for the vehicle;

(2) if the ownership of a motor vehicle is transferred as the

result of an even exchange, the principal parties shall make a

joint statement describing the nature of the transaction; or

(3) if the ownership of a motor vehicle is transferred as the

result of a gift, the principal parties shall make a joint

statement describing the nature of the transaction and the

relationship between the principal parties.

(b-1) A joint statement required by Subsection (b)(3) must be

notarized.

corporation, the president, vice-president, secretary, manager,

or other authorized officer of the corporation shall make the

statement for the corporation.

(d) Repealed by Acts 1999, 76th Leg., ch. 1467, Sec. 4.01(3),

eff. June 19, 1999.

(e) The tax assessor-collector shall examine each joint

statement for the purpose of determining the truth and accuracy

of the information it contains. If the tax assessor-collector or

the comptroller has reason to question the truth of the

information in a statement, or if any material fact fails to meet

the guidelines promulgated by the comptroller, the tax

assessor-collector or the comptroller shall require any party to

the statement to furnish substantiation of information contained

in the statement.

(f) The tax assessor-collector shall immediately report to the

nearest peace officer and to the comptroller, the name and

address of each party whose name is signed on a joint statement

found to be false in any material fact.

(g) The tax assessor-collector shall keep a copy of each

statement and any substantiating materials required to be

furnished in connection therewith until it is called for by the

comptroller for auditing or by any court of competent

jurisdiction.

Acts 1981, 67th Leg., p. 1591, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1,

Sec. 45, eff. Aug. 1, 1984; Acts 1993, 73rd Leg., ch. 587, Sec.

20, eff. Oct. 1, 1993; Acts 1999, 76th Leg., ch. 1467, Sec. 4.01,

eff. June 19, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

686, Sec. 3, eff. September 1, 2009.

Sec. 152.063. RECORDS. (a) The seller of a motor vehicle shall

keep at his principal office for at least four years from the

date of the sale a complete record of each retail sale of a motor

vehicle. The record must include a copy of the invoice of each

vehicle sold. The invoice copy must show the full price of the

motor vehicle and the itemized price of all its accessories. All

sales and supporting records of a seller are open to inspection

and audit by the comptroller.

(b) The owner of a motor vehicle used for rental purposes shall

keep for four years after purchase of a motor vehicle records and

supporting documents containing the following information on the

amount of:

(1) total consideration for the motor vehicle;

(2) motor vehicle sales or use tax paid on the motor vehicle;

(3) gross rental receipts received from the rental of the motor

vehicle; and

(4) gross rental receipts tax paid to the comptroller on each

motor vehicle used for rental purposes by the owner.

(d) A seller's business records must show the total receipts

from all sources of income and expense, including transactions

involving motor vehicles.

(e) For a retail sale for which the seller receives full payment

at the time of sale, the seller shall keep, at the seller's

principal office for at least four years from the date of the

sale, documentation of complete payment in the form of:

(1) a copy of the payment instrument or a receipt for cash

received; and

(2) a copy of the receipt for title application, registration,

and motor vehicle tax issued by the county tax

assessor-collector.

(f) For a sale for resale, the seller shall keep, at the

seller's principal office for at least four years from the date

of the sale, the purchaser's written statement of resale on a

form prescribed by the comptroller.

(g) Any person, other than the seller's employee, acting for the

seller of a motor vehicle has the same record-keeping

responsibilities as the seller.

Acts 1981, 67th Leg., p. 1591, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1993, 73rd Leg., ch. 587, Sec. 21, eff.

Oct. 1, 1993; Acts 1997, 75th Leg., ch. 1040, Sec. 29, eff. Oct.

1, 1997.

Sec. 152.0635. RECORDS OF CERTAIN SELLERS. (a) In addition to

the requirements prescribed by Section 152.063, a seller engaged

in seller-financed sales who has a permit under Section 152.065

shall keep the records required by this section.

(b) For seller-financed sales, the seller shall keep at the

seller's principal office for at least four years from the date

on which the seller receives the final payment for the motor

vehicle:

(1) the lienholder's copy of the receipt for title application,

registration, and motor vehicle tax issued by a county tax

assessor-collector; and

(2) a ledger or other document containing a complete record of

the payment history for that motor vehicle, including:

(A) the name and address of the purchaser;

(B) the total consideration;

motor vehicle is sold;

(D) the date and amount of each subsequent payment;

(E) the date of sale; and

(F) the date of any repossession.

seller shall keep at the seller's principal office for at least

four years from the date of the sale documentation of complete

payment in the form of:

(1) a copy of the payment instrument or a receipt for cash

received; and

(2) a copy of the receipt for title application, registration,

and motor vehicle tax issued by the county tax

assessor-collector.

(d) For sales for resale, the seller shall keep at the seller's

principal office for at least four years from the date of the

sale the purchaser's written statement of resale on a form

prescribed by the comptroller.

Added by Acts 1993, 73rd Leg., ch. 29, Sec. 5, eff. Oct. 1, 1993.

Amended by Acts 1997, 75th Leg., ch. 1040, Sec. 30, eff. Oct. 1,

1997.

Sec. 152.064. TAX RECEIPTS. (a) The comptroller shall

prescribe the form of a tax receipt to be issued to a person

paying a tax imposed by this chapter.

(b) The tax assessor-collector of each county shall:

(1) issue a receipt to the person paying a tax imposed by this

chapter; and

(2) send a copy of the receipt to the comptroller according to

the instructions of the comptroller.

Acts 1981, 67th Leg., p. 1592, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1983, 68th Leg., p. 1361, ch. 280, Sec. 2,

eff. Sept. 1, 1983; Acts 1997, 75th Leg., ch. 357, Sec. 1, eff.

Jan. 1, 1998.

Sec. 152.065. REQUIRED PERMITS. A motor vehicle owner required

to collect, report, and pay a tax on gross rental receipts

imposed by this chapter and a seller required to collect, report,

and pay a tax on a seller-financed sale shall register as a

retailer with the comptroller in the same manner as is required

of a retailer under Subchapter F, Chapter 151.

Acts 1981, 67th Leg., p. 1592, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1993, 73rd Leg., ch. 29, Sec. 6, eff. Oct.

1, 1993.

Sec. 152.066. DEFICIENCY DETERMINATION; PENALTY AND INTEREST.

(a) The comptroller shall give written notice to the seller of a

motor vehicle of a deficiency determination made under Section

152.044 of this code.

(b) A person who fails to pay a tax imposed by this chapter when

due forfeits five percent of the amount due as a penalty, and if

the person fails to pay the tax within 30 days after the day on

which the tax is due, the person forfeits an additional five

percent.

(d) Except in the case of the gross receipts tax, interest

begins to accrue on delinquent taxes 60 days after the day on

which the joint statement was executed. Delinquent taxes on gross

rental receipts draw interest beginning 60 days from the due

date.

Acts 1981, 67th Leg., p. 1592, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1983, 68th Leg., p. 455, ch. 93, Sec. 12,

eff. Sept. 1, 1983; Acts 1997, 75th Leg., ch. 1040, Sec. 31, eff.

Oct. 1, 1997.

Sec. 152.067. PETITION FOR REDETERMINATION OF A DEFICIENCY. (a)

The comptroller shall:

(1) promulgate rules under which the seller may petition for a

redetermination of deficiency; and

(2) grant an oral hearing to any seller who requests a hearing.

(b) The comptroller may increase or decrease the determination

of deficiency before it becomes final, but the amount may be

increased only if the comptroller asserts a claim for the

increase at or before the oral hearing.

determination, the seller is entitled to a 30-day continuance of

the hearing in order to obtain other evidence relating to the

items on which the increase is based.

Acts 1981, 67th Leg., p. 1592, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 152.068. REVOCATION OF MOTOR VEHICLE RETAIL SELLER'S

PERMIT. (a) The comptroller may revoke or suspend any one or

more of the permits held by a person if that person fails to

comply with a provision of this chapter or with a rule of the

comptroller relating to a tax imposed by this chapter.

(b) Before revoking or suspending the permit, the comptroller

must provide the permit holder with a hearing. The permit holder

must be given at least 20 days' notice specifying the time and

place of hearing and requiring that the permit holder show cause

why the permit or permits should not be revoked or suspended.

suspension or revocation of any permit.

(d) Notice required by this section must be written and may be

served either personally or by mail.

(e) The comptroller may not issue a new permit after the

revocation of a permit unless satisfied that the former permit

holder will comply with the provisions of this chapter and the

rules of the comptroller. The comptroller may prescribe the terms

under which a suspended permit may be reissued.

(f) The permit holder or person whose permit is revoked may

appeal the comptroller's action in the same manner as a final

deficiency determination may be appealed.

Acts 1981, 67th Leg., p. 1593, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1993, 73rd Leg., ch. 29, Sec. 7, eff. Oct.

1, 1993.

Sec. 152.069. REGISTRATION OF MOTOR VEHICLE USING

SELLER-FINANCING. (a) The seller of a motor vehicle sold in a

seller-financed sale shall apply for the registration of, and a

Texas certificate of title for, the motor vehicle in the name of

the purchaser to the appropriate county tax assessor-collector

not later than the 45th day after the date the motor vehicle is

delivered to the purchaser.

(b) The seller shall provide to the county tax

assessor-collector a joint statement as prescribed by Section

152.062 in lieu of the motor vehicle sales tax imposed by Section

152.021. The statement shall include the seller's permit

identification number issued by the comptroller.

Added by Acts 1993, 73rd Leg., ch. 29, Sec. 8, eff. Oct. 1, 1993.

Amended by Acts 1997, 75th Leg., ch. 1040, Sec. 32, eff. Oct. 1,

1997.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

793, Sec. 16, eff. September 1, 2009.

SUBCHAPTER E. EXEMPTIONS

Sec. 152.081. DRIVER TRAINING MOTOR VEHICLES. The taxes imposed

by this chapter do not apply to the sale or use of a motor

vehicle that is:

(1) owned by a motor vehicle dealer as defined by Section

503.001, Transportation Code;

(2) purchased in this state; and

(3) loaned free of charge by the dealer to a public school for

use in an approved standard driver training course.

Acts 1981, 67th Leg., p. 1593, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.256, eff.

Sept. 1, 1997.

Sec. 152.082. SALE OF MOTOR VEHICLE TO OR USE OF MOTOR VEHICLE

BY PUBLIC AGENCY. The taxes imposed by this chapter do not apply

to the sale of a motor vehicle to or use of a motor vehicle by a

public agency if the motor vehicle is operated with an exempt

license plate issued under Section 502.201 or 502.206,

Transportation Code.

Acts 1981, 67th Leg., p. 1593, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.257, eff.

Sept. 1, 1997.

Sec. 152.083. LEASE OF MOTOR VEHICLE TO PUBLIC AGENCY. (a) The

taxes imposed by this chapter do not apply to the purchase of a

motor vehicle that is to be leased to a public agency.

(b) This exemption applies only if the person purchasing the

motor vehicle to be leased presents the tax assessor-collector a

form prescribed and provided by the comptroller and showing:

(1) the identification of the motor vehicle;

(2) the name and address of the lessor and the lessee; and

(3) verification by an officer of the public agency to which the

motor vehicle will be leased that the agency will operate the

vehicle with an exempt license plate issued under Section 502.201

or 502.206, Transportation Code.

ceases to be leased to a public agency, the owner shall notify

the comptroller on a form provided by the comptroller and shall

pay the sales or use tax on the motor vehicle based on the

owner's book value of the motor vehicle. The tax is imposed at

the same rate that is provided by Section 152.021(b) of this

code.

Acts 1981, 67th Leg., p. 1593, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.258, eff.

Sept. 1, 1997.

Sec. 152.084. RENTAL OF MOTOR VEHICLE TO PUBLIC AGENCY. The

taxes imposed by this chapter do not apply to the rental of a

motor vehicle to a public agency. The tax which would have been

remitted on gross rental receipts without this exemption shall be

deemed to have been remitted for the purpose of calculating the

minimum gross rental receipts tax imposed by Section 152.026 of

this code.

Acts 1981, 67th Leg., p. 1594, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 152.085. RENTAL OF MOTOR VEHICLE FOR PURPOSES OF RE-RENTAL.

(a) The taxes imposed by this chapter on the gross rental

receipts from the rental of a motor vehicle do not apply to the

rental of a motor vehicle for the purpose of re-rental.

(b) The minimum gross rental receipts tax imposed by Section

152.026 of this code remains the obligation of the owner as

defined by Section 152.001(9)(A) of this code. The owner may

credit all gross rental receipts taxes paid to the comptroller on

the re-rental of a motor vehicle registered under Section 152.061

of this code for the purpose of calculating the amount of minimum

gross rental receipts tax due.

certificate to the owner of the motor vehicle. An owner who takes

the certificate in good faith is relieved of the burden of

proving that the motor vehicle was rented for purposes of

re-rental.

Acts 1981, 67th Leg., p. 1594, ch. 389, Sec. 1, eff. Jan. 1,

1982.

Sec. 152.086. MOTOR VEHICLES DRIVEN BY HANDICAPPED PERSONS. (a)

The taxes imposed by this chapter do not apply to the sale or

use of a motor vehicle that:

(1) has been or will be modified before the second anniversary

of the date of purchase for operation by, or for the

transportation of, an orthopedically handicapped person; and

(2) is driven by or used for the transportation of an

orthopedically handicapped person.

(b) The comptroller shall promulgate rules to ensure that motor

vehicles exempted from taxation by this section are used

primarily by orthopedically handicapped persons. The comptroller

may require any individual seeking exemption under this section

to present information establishing qualification for the

exemption.

(b-1) The seller of a motor vehicle may not collect the tax from

the purchaser of the motor vehicle if the purchaser:

(1) signs at the time of the purchase an exemption certificate

that:

(A) is on a form designated by the comptroller; and

(B) contains all information the comptroller considers

reasonable to establish qualification for the exemption at the

time of sale; and

(2) presents any other documentation or information the

comptroller requires by rule.

(b-2) Notwithstanding any other provision of this section or

other law, the seller of a motor vehicle may rely on a properly

executed and signed exemption certificate under Subsection (b-1)

and does not have a duty to investigate the propriety of an

exemption certificate that is valid on the certificate's face. A

seller who relies on an exemption certificate as provided by this

subsection is not liable for the payment of motor vehicle sales

taxes that would otherwise be due as a result of a motor vehicle

sale.

primarily for the purposes specified in this Act or that the

exemption should not have been granted, the comptroller shall

assess the tax in an amount that would have been due had the

exemption not been given under this section.

Acts 1981, 67th Leg., p. 1594, ch. 389, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1981, 67th Leg., p. 2758, ch. 752, Sec.

5(b), eff. Jan. 1, 1982; Acts 2003, 78th Leg., ch. 209, Sec. 25,

eff. Oct. 1, 2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

294, Sec. 1, eff. Septe

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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