| (A) retail sale of a motor vehicle in which a person
other than the seller provides the total consideration for the sale
and retains a lien on the motor vehicle as collateral;
(B) lease; or
(C) rental.
(20) Seller-financed sales tax report--The Texas Motor
Vehicle Seller-Financed Sales Tax Report, Form 14-117, its electronic
equivalent, or a successor form, promulgated by the comptroller. The
seller-financed sales tax report is available at comptroller.texas.gov.
(21) Texas Registration for Motor Vehicle Related Finance
Company--Form AP-222, its electronic equivalent, or a successor form,
promulgated by the comptroller, used to apply for a related finance
company registration. Texas Registration for Motor Vehicle Related
Finance Company is available at comptroller.texas.gov.
(22) Total consideration--
(A) The amount paid or to be paid for a motor vehicle
and its accessories attached on or before the sale, without deducting:
(i) the cost of the motor vehicle;
(ii) the cost of material, labor or service, interest
paid, loss, or any other expense;
(iii) the cost of transportation of the motor vehicle
before its sale; or
(iv) the amount of manufacturers' or importers' excise
tax imposed on the motor vehicle by the United States.
(B) The amount paid or to be paid includes anything
of monetary value, such as cash or the equivalent; a book entry reflecting
cash received or paid; the forgiveness or assumption of debt; book
entries reflecting accounts receivable or accounts payable for an
item; the performance of a service; or real or tangible personal property.
(C) The term does not include:
(i) separately stated cash discounts;
(ii) a full cash or credit refund to a customer of
the sales price of, meaning the amount paid for, a motor vehicle that
the customer returns to the seller;
(iii) the amount charged for labor or service rendered
in installing, applying, remodeling, or repairing the motor vehicle
sold;
(iv) separately stated finance or interest charges
on credit extended under a conditional sale or other deferred payment
contract;
(v) the value of a motor vehicle taken by a seller
as all or a part of the consideration for sale of another motor vehicle;
(vi) the fair market value of a motor vehicle titled
in Texas in the name of a dealer or a person who is in the business
of renting or leasing motor vehicles, as provided by §3.73 of
this title (relating to Qualifying for Fair Market Value Deduction
and Determination of Fair Market Value for Replaced Vehicles);
(vii) a charge for transportation of the motor vehicle
after the sale of the motor vehicle;
(viii) motor vehicle inventory tax, separately stated
charges to prepare and process documents related to the transfer of
a motor vehicle, fees to register and/or apply for a certificate of
title, fees or charges prescribed by law in connection with the sale
or inspection of the motor vehicle, and any additional fees charged
by the deputy of a county tax assessor-collector; or
(ix) separately stated charges for the sale of an extended
warranty, maintenance agreement, service contract, insurance, automobile
club membership, roadside assistance program, or a debt cancellation
agreement.
(23) Wholesale motor vehicle dealer--A dealer who sells
motor vehicles only to persons who hold a dealer's general distinguishing
number.
(b) Motor vehicle seller-financed sales tax permit.
Every dealer making seller-financed sales must apply to the comptroller
and obtain a Motor Vehicle Seller-Financed Sales Tax Permit.
(1) To obtain a permit, the dealer must complete a
Texas Application for Motor Vehicle Seller-Financed Sales Tax Permit,
Form AP-169, its electronic equivalent, or its successor, promulgated
by the comptroller. The application is available at comptroller.texas.gov.
(2) A separate permit is not required for each location.
The comptroller issues one Motor Vehicle Seller-Financed Sales Tax
Permit to each dealer making seller-financed sales, regardless of
the number of locations or dealerships the dealer operates.
(3) Each dealer (corporation, partnership, sole proprietor,
etc.) must apply for its own permit. The permit cannot be transferred
from one dealer to another.
(c) Collection and remittance of motor vehicle tax.
(1) Seller-financed sales.
(A) A dealer who makes a seller-financed sale must
apply to the appropriate county tax assessor-collector to title and
register the motor vehicle by filing an Application for Texas Title
and/or Registration no later than the 45th day after the date the
motor vehicle is delivered to the purchaser.
(B) A dealer making a seller-financed sale must also:
(i) collect and remit motor vehicle tax on the total
consideration for the motor vehicle at the time the Application for
Texas Title and/or Registration is presented to the county tax assessor-collector;
or
(ii) collect and remit the motor vehicle tax to the
comptroller as the payments are received, as explained in subsection
(d) of this section. A dealer making a seller-financed sale must include
its 11-digit Seller-Financed Sales Tax Permit Number on the Application
for Texas Title and/or Registration if the dealer intends to remit
the motor vehicle tax on a report to the comptroller instead of remitting
the motor vehicle tax at the time the Application for Texas Title
and/or Registration is presented to the county tax assessor-collector.
(2) Retail sales other than seller-financed sales.
(A) A dealer must collect motor vehicle tax on each
retail sale, unless an exemption applies. The tax is imposed on the
total consideration for the motor vehicle.
(B) The dealer must remit the motor vehicle tax due
to the appropriate county tax assessor-collector at the time the dealer
submits the Application for Texas Title and/or Registration. Motor
vehicle tax is due within 30 calendar days after the date of the sale.
(C) A dealer is not required to collect motor vehicle
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 an Application for Texas
Title and/or Registration, signed by both the dealer and purchaser,
and all other documents required by the Texas Department of Motor
Vehicles to apply for title or register the motor vehicle. The purchaser
must remit motor vehicle tax to the county tax assessor-collector
within 30 calendar days after the date of sale.
(D) If a dealer sells a commercial motor vehicle that
is required to be equipped with a body or other necessary equipment
before the motor vehicle can be registered under the Transportation
Code, then the dealer must remit the motor vehicle tax within 30 calendar
days after the date on which the motor vehicle becomes eligible for
registration.
(3) The dealer must retain copies of the documentation
provided to the purchaser and all other records pertaining to the
sale. The specific records each dealer is required to keep are listed
in Tax Code, §152.063 (Records) and §152.0635 (Records of
Certain Sellers). The dealer must keep the records for a minimum of
four years from the date on which the record is made, and throughout
any period in which any tax, penalty, or interest may be assessed,
collected, or refunded by the comptroller or in which an administrative
hearing or judicial proceeding is pending, unless the comptroller
authorizes in writing a shorter retention period.
(4) The motor vehicle tax due is 6.25% of the total
consideration. Except as provided in paragraph (2)(C) of this subsection,
the motor vehicle tax is a debt of the purchaser to the dealer until
paid. Unpaid motor vehicle tax is recoverable by the dealer in the
same manner as the total consideration for the motor vehicle, if unpaid,
would be recoverable. The comptroller may proceed against either the
dealer or purchaser, or both, until all applicable motor vehicle tax,
penalty, and interest due has been paid.
(d) Remittance of motor vehicle tax on seller-financed
sales as payments are received.
(1) Each dealer making seller-financed sales who collects
motor vehicle tax as the payments are received from the purchaser
must remit the motor vehicle tax collected to the comptroller on or
before the 20th day of the month following each reporting period.
The dealer must file a consolidated report with the comptroller, together
with the motor vehicle tax collected for seller-financed sales made
at all locations owned by the dealer.
Cont'd... |
