Buying A Used Motor Vehicle
Effective October 1, 2006, state law changes the method to calculate motor vehicle
sales and use tax due when you buy a used vehicle. The tax will continue to be due
when you title and register the vehicle at the county tax office. A purchaser must
pay the tax within 20 county working days from the date of purchase or the date
the vehicle was brought into Texas for use to avoid penalties.
Estimate Tax Calculation For Buying A Used Motor Vehicle:
How much tax is due?
If you buy the vehicle from a licensed dealer, the tax is 6.25% of the sales price.
If you buy from a private party, such as a friend or relative, the tax is 6.25% of:
the sales price, if you paid 80% or more of the vehicle’s standard
presumptive value
(SPV);
80% of the vehicle’s SPV, if you paid less than that amount; or
the certified appraised value, if you paid less than 80% of the vehicle’s SPV
and you get
a certified appraisal.
What is vehicle's Standard Presumptive Value (SPV)?
The law requires the Texas Department of Motor Vehicles (TxDMV) to determine
and publish a SPV data base for used vehicles. Check the TxDMV Web site at
www.TxDMV.gov.
Where do you get a certified appraisal?
You have two options. Get a certified appraisal from a licensed dealer for your
vehicle
type. The fee can be no less than $100 and no more than $300, except for
appraisals of
motorcycles, house trailers, travel trailers and motor homes. Or
get an appraisal from a
licensed insurance adjuster for a fee to be determined
by the adjuster.
Questions?
Contact the Comptroller’s office at 1-800-252-1382 or your local county tax
office for more information. For more details, see
Comptroller publication 96-1220,
County Procedures for Standard Presumptive Value and Used Motor Vehicles.
Publication 96-1220, explains the law and its provisions and is available on the
Comptroller’s Window on State Government at www.window.state.tx.us