| (4) The transfer of a joint or undivided ownership interest in a motor vehicle for no consideration to a dealer that is a corporation, limited liability company, partnership or trust is subject to tax by the dealer on the value of the vehicle pursuant to subsection (c)(2) of this section, at the time of the transfer, unless the transaction qualifies as a gift pursuant to subsection (b)(4) of this section or is exempt from tax pursuant to Tax Code, Chapter 152, Subchapter E. (e) Transfer of a motor vehicle as a prize. A joint or undivided ownership interest in a motor vehicle that is transferred to the winner of a contest or drawing, regardless of how the contest or drawing is held, is subject to sales and use tax as follows: (1) A motor vehicle that is purchased by a contest sponsor and transferred directly from the seller of the vehicle to the contest winner is subject to tax based on the total consideration paid for the vehicle. The tax is the liability of the contest sponsor and is due and payable before the vehicle can be titled and/or registered. (2) A motor vehicle that is transferred directly from the seller of the vehicle to a contest sponsor for consideration and the sponsor subsequently transfers the vehicle to the contest winner is subject to tax as follows: (A) the sponsor owes tax on the total consideration paid for the vehicle to the seller; and (B) the winner owes sales and use tax based on the taxable value pursuant to subsection (c) of this section, unless the transfer from the sponsor to the winner qualified as a gift pursuant to subsection (b)(4) of this section. (3) The transfer of a motor vehicle directly from the owner of the vehicle to a contest sponsor for no consideration, and the subsequent transfer of the vehicle from the sponsor to the contest winner are both subject to tax pursuant to subsection (c) of this section unless: (A) the owner of the vehicle is a dealer, then the sponsor owes tax based on the dealer's book value of the vehicle at the time of the transfer and the winner owes tax pursuant to subsection (c) of this section; or (B) if the sponsor qualifies as a nonprofit organization pursuant to subsection (b)(4) of this section, then the $10 gift tax is due by both the sponsor and the winner. (4) The transfer of a motor vehicle directly to the winner of a contest or drawing from a manufacturer or dealer of motor vehicles that sponsored the contest or drawing is subject to tax by the winner based on the manufacturer's or dealer's book value of the vehicle at the time of transfer. (5) The transfer of a motor vehicle directly from a sponsor of a contest or drawing located outside of Texas to a winner who is a Texas resident or who is domiciled or doing business in Texas is subject to use tax by the winner pursuant to subsection (c) of this section if the vehicle is brought into Texas for use on the public highways of Texas unless: (A) the sponsor is a manufacturer or dealer, then the winner owes tax on the manufacturer's or dealer's book value of the vehicle at the time of transfer; or (B) the sponsor qualifies as a nonprofit organization pursuant to subsection (b)(4) of this section, then the $10 gift tax is due by the winner. (f) Documentation required for a gift of a motor vehicle. The principal parties to the transfer of a motor vehicle as the result of a gift or transfer of title to community property between spouses pursuant to subsection (b) of this section, must file comptroller's form 14-317, Texas Affidavit of Motor Vehicle Gift Transfer, with the tax assessor-collector of the county in which the Application for Texas Certificate of Title, form 130-U, is submitted. (1) To be valid, the affidavit must be properly completed and contain the signatures of all principal parties to the transaction sworn to and subscribed before either: (A) a notary public of Texas or the equivalent from some other state or jurisdiction; or (B) a county tax assessor-collector or an employee of the county tax assessor-collector pursuant to Government Code, §602.002. (2) the party or parties whose signature is being acknowledged must: (A) be present and sign the affidavit in front of the tax assessor-collector or an employee of the county tax assessor-collector; or (B) have a signed power of attorney from any absent party or the signature of the absent party must be formally certified pursuant to paragraph (1)(A) of this subsection. (3) Pursuant to Tax Code, §152.062, the tax assessor-collector may examine each Texas Affidavit of Motor Vehicle Gift Transfer or Application for Texas Certificate of Title for their truth and accuracy. If the tax assessor-collector has reason to question the validity of the information in an affidavit or application for title, or if any material fact fails to meet the guidelines required by the Comptroller, the tax assessor-collector may request that any party to the affidavit or application for title furnish further substantiation for the information contained in the affidavit or application for title, including but not limited to documentation used to arrive at a taxable value, or proof of marriage, certified copies of birth certificates, decrees of adoption, baptismal records, court orders establishing paternity or voluntary admissions of paternity. (4) Pursuant to Tax Code, §152.101, a person commits a felony of the third degree by signing an affidavit or application for title required by this section if he or she knows that it is false in any material fact. |
