Texas - Sales Tax on Registration of long-owned vehicles

[tkcas01]

For a fulltimer changing domicile from SD to TX, when registering vehicles from out of state, how do they determine any sales tax that is owed? In my case, both vehicles have been owned for many years.

Do they use current value of the vehicle and collect tax by the difference in vehicle sales tax rates between SD and TX? Is there any value in proving how much you already paid in sales tax on the vehicles in the other state, or would revealing originally purchase price make things worse?

Just wondering if there is anything I can do to minimize how much tax they want to collect and verify it is calculated properly?

[Dtwallace]

They use current value of the vehicle and collect tax based on that alone as I understand it.


When I was in the Military and changed stations, I was asked at times how much a vehicle was worth, or how much I paid for it. These were older vehicles and I'm assuming DMV had no clue as to the values


So that being said, just be ready to answer that question with an answer that is in your best interest.


DTW

[barmcd]

They have an assumed value book they look at for current value. You'll pay tax of 6.25 percent. You get credit for any tax you paid when you bought the vehicle. Most states have a lower sales tax on vehicles, but a few have higher.

As a side note, my son, who's home of record is Texas was stationed in North Carolina and had a car with NC plates and title. He went to Germany and left the car with me. I was able to register the car in Texas without paying the sales tax (never been able to do that before) although the title remained a NC title. I'm not sure how that worked, but it cost me $187 when normal registration is about $45 for his weight of car. Texas charges registration fees by weight.

[barmcd]

They're pretty tone deaf when it comes to values. I bought a basket case of a motorcycle from Florida and had to pay the assumed value when I got a Texas title.

[Selah]

Wait... Texas charges a sales taxe on a vehicle previously owned for more than six months?

[Big Bear Local]

Why would there be a sales tax. It hasn't been sold or bought. No sale took place.

[Beau388]

There is; however, a use tax which varies by county and vehicle weight. There is a surcharge for Diesel powered vehicles over 10,000 lbs. Sales tax is only payed on the net amount of the transaction if it occurs in Texas or at least that what I understand. Here in KY we pay 2% of the assessed value of any motor vehicle used on public roads (except for farm equipment). Moving to TX next year.

[twogypsies]

When you buy a RV elsewhere and register it in Texas you only pay or are refunded the difference between the two sales tax amounts.

[RV Vagabond]

I am moving to Texas next year and read about it on their website. I bought my motorhome in Montana where they do not have sales tax and Texas wanted about $15,000 to re-register it in Texas. No thanks.

[Mr_D]

Originally Posted by Selah

Wait... Texas charges a sales taxe on a vehicle previously owned for more than six months?

WA does to on RV's and they call it a "use tax". They used to not do that if you had the rig over six months, but they consider and RV (and boat) to be a luxury so they make you pay the tax unless you can prove you paid the same or more in another state. Pay less and you now pay the difference. That's one reason it doesn't pay to move to WA for a domicile. We've already paid it on all our vehicles so it behooves us to stay here. MH costs $116 a year for tags and the car and van are about $60 each. No income tax either, property taxes are lower than some and higher than some.
For residents in WA the sales/use tax can be about 10% of the value as determined by the state or, if trading in another vehicle, the difference between the values.

[barmcd]

From the TXDOT website.

Within 30 days of bringing the vehicle to Texas, you must obtain a vehicle inspection and visit your county tax assessor-collector to title and register the vehicle. The vehicle must pass inspection before it can be registered and titled. After having it inspected, take the following to your county tax office:

Proof of Inspection (Vehicle Inspection Report),
Proof of liability insurance meeting State of Texas minimum requirements,
The vehicle's odometer reading if it is less than 10 years old,
An original out-of-state title,
Proof of valid registration,
Proof of sales tax payment or current foreign/military ownership document,
Completed Form 130-U,

The following fees:
Registration fee (base fee of $50.75 for passenger vehicles and light trucks),
Title application fee of $28 or $33, depending on the county,
State portion of the vehicle inspection fee ($7-$40), if the vehicle was inspected after March 1, 2015
6.25% vehicle sales tax,
Local and county fees ($5-$20),
$1 Insurance verification fee
$1 Automation fee

[JohnBoyToo]

I didn't do that when we moved to Texas as there was not a 'sale' involved in the move... We just paid the title fees, etc...

Now, if I had bought the car in Texas, that's another thing - the rv we bought last year? now THAT sales tax HURT --- badly

[barmcd]

Originally Posted by JohnBoyToo

I didn't do that when we moved to Texas as there was not a 'sale' involved in the move... We just paid the title fees, etc...

Now, if I had bought the car in Texas, that's another thing - the rv we bought last year? now THAT sales tax HURT --- badly

You wouldn't pay the sales tax if you already paid it to another state. I'm a life long Texan, but spent 25 years in the Air Force. I was transferred from Nebraska to Texas. We had purchased a car in Nebraska which has a 3.5% vehicle sales tax and had to pay the 3% difference when we registered the vehicle in Texas.

[Jim2]

Don't get hung up on the wording, Sales vs Use. Texas like almost every state applies either a sales or use tax of the same amount to either a sales transaction or a transfer into the state.
The difference I see in Texas, according to the state tax controller's web site Motor Vehicle Sales and Use Tax
is that Texas exempts a "new resident" who transfers in a vehicle that was previously registered in their name in their previous home state; only a fixed $90 fee is applied, in lieu of the Use tax.