Texas Dealers Motor Vehicle Sales Tax, Inventory Declaration, and VIT

A licensed motor vehicle dealer will collect sales tax at the time of the sale on most transactions. The sales tax you collect will then be remitted to the county specified by the purchaser

A licensed motor vehicle dealer will normally only be charging the sales tax rate of 6.25 percent.

A dealer is not required to collect tax on the sale of a motor vehicle with a gross weight in excess of 11,000 pounds. If the dealer does not collect the motor vehicle tax, the dealer must provide the purchaser with Form 130-U signed by both the dealer and purchaser.

A Texas licensed motor vehicle dealer may purchase vehicles for resale without an application for Texas title, but must issue Form 14-313, Texas Motor Vehicle Sales Tax Resale Certificate to the selling dealer. A one-time “blanket” certificate may be issued

The TxDMV requires Form 130-U to apply for title and/or registration. The Comptroller’s office requires Form 130-U to pay motor vehicle tax or claim an exemption. The form must be signed by both the dealer and the purchaser.

Standard Presumptive Value

The Standard presumptive value law only applies to sales of motor vehicles between individuals which are not licensed dealers. A private-party sale does not involve a licensed motor vehicle dealer. If a licensed motor vehicle dealer sells the used vehicle, tax is due based on the sales price. The county does not have to check the used vehicle’s standard presumptive value if the seller is a licensed dealer. The selling dealer’s signature on the title application is an acceptable record of the sales price. The county tax assessor-collector, at his or her option, may request the dealer’s invoice or sales receipt from any purchaser.

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Texas Dealer License

Delus Johnson-Lead Instructor
Automobile Dealer Training Association