CHAPTER 152. TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES
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;
(C) an exchange in which property is transferred but the seller
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
(C) the sale to a franchised dealer of a new motor vehicle
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
(C) a house trailer as defined by Chapter 501, Transportation
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;
(C) road-building machinery;
(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
(C) an agreement to give exclusive use of a motor vehicle to
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;
(C) separately stated charges for motor fuel sold by the owner
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;
(C) used primarily for the purpose of providing transportation
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
(C) rental.
(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.
(c) A person who is in the business of selling, renting, or
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.
(c) All county tax assessors-collectors shall consistently apply
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.
(c) This section expires August 31, 2019.
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.
(c) The tax imposed by this section is in lieu of the tax
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.
(c) No transfer of title in an even exchange shall be
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.
(c) Except for a destroyed motor vehicle or an unrecovered
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.
(c) The tax imposed by this section is in lieu of any other tax
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.
(c) Except as provided by Subsection (f) and Section 152.047,
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.
(c) This section applies only to the sale of a vehicle that is
to be titled and registered in Texas. If a purchaser intends to
register a vehicle outside Texas, the purchaser shall comply with
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.
(c) If the amount paid for a motor vehicle subject to the tax
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.
(c) The comptroller may proceed against a person renting a motor
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.
(c) For the purpose of determining the amount of minimum tax due
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.
(c) 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 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
(C) in a public offering;
(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.
(c) A related finance company may annually register with the
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.
(c) The seller may overcome the presumption under Subsection (a)
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.
(c) The rental certificate shall be in a form designated by the
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.
(c) If a party to a sale, even exchange, or gift is a
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.
(c) No mileage records are required.
(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;
(C) the amount of the down payment received at the time the
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.
(c) For retail sales paid in full 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.
(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.
(c) The minimum penalty imposed by this section is $1.
(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.
(c) If the comptroller asserts a claim for an increase in the
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.
(c) The comptroller shall give the person notice of the
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.
(c) If a motor vehicle for which the tax has not been paid
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.
(c) A person authorized by Section 152.061 of this code to
register motor vehicles for rental may issue an exemption
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.
(c) If the comptroller finds that the motor vehicle is not used
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