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RULE §3.90Motor Vehicles Purchased for Use Outside of Texas

(a) Motor vehicle sales tax exemption.

  (1) A motor vehicle purchased in Texas intended for use exclusively outside of Texas is exempt from the motor vehicle sales tax.

  (2) A vehicle exempt under this section may not be operated within Texas for any purpose other than its being driven out of the state.

  (3) A purchaser claiming an exemption from motor vehicle sales tax because the vehicle is purchased for use exclusively outside of Texas must issue to the seller a Texas Motor Vehicle Sales Tax Exemption Certificate as described in subsection (e) of this section. The registration of a motor vehicle in Texas will create the presumption that the vehicle is for use within Texas.

(b) Seller's responsibility.

  (1) The seller of a motor vehicle must keep complete records of every sale at retail and must provide the purchaser a motor vehicle tax statement and any other documents necessary to register the vehicle in Texas. The seller is not relieved of this responsibility even though the vehicle is not registered or titled in Texas.

  (2) The seller must also retain properly executed Texas Motor Vehicle Sales Tax Exemption Certificates. An exemption certificate must be obtained at the time the transaction occurs and retained for a period of four years from the date of the transaction. An exemption certificate will be valid if the seller received it in good faith from a purchaser and the certificate is properly completed.

(c) Use tax.

  (1) Motor vehicle use tax is due on any motor vehicle that was purchased tax-free under the provisions of this section and is later used within the State of Texas.

  (2) Payment of the use tax is the obligation of the person operating the vehicle in this state.

  (3) The use tax rate is the rate in effect at the time the motor vehicle is brought back into the state and is imposed on the original purchase price, less credit for any legally imposed tax previously paid to another state by the purchaser or operator.

  (4) The tax is due within 20 working days after the date the vehicle is first returned to Texas.

  (5) The purchaser must retain records showing the total consideration originally paid for the vehicle and documenting the amount of any tax previously paid to another state.

(d) Vehicles which never enter Texas.

  (1) The Texas motor vehicle sales tax will not be due if a motor vehicle is sold by a Texas seller but the vehicle is delivered from one out-of-state location directly to the purchaser at another out-of-state location.

  (2) The seller will be responsible for retaining sufficient records showing from and to where the vehicle was delivered.

(e) Content of a Texas Motor Vehicle Sales Tax Exemption Certificate. The exemption certificate must show:

  (1) the name and address of the purchaser;

  (2) a description of the vehicle being purchased (including the vehicle identification number, make of vehicle, and year model);

  (3) the signature of the purchaser and the date;

  (4) the name and address of the seller;

  (5) the name of the state where the vehicle will be used and registered; and

  (6) that upon being signed by the purchaser, the comptroller is authorized to provide a copy of the certificate to the state of intended use and registration.

(f) Form of a Texas Motor Vehicle Sales Tax Exemption Certificate. The comptroller adopts the certificate by reference. Copies are available for inspection at the office of the Texas Register or may be obtained from the Comptroller of Public Accounts, Tax Administration Division, 111 West Sixth Street, Austin, Texas 78701-2913. Copies may also be requested by calling our toll-free number 1-800-252-5555. In Austin, call (512) 463-4600. (From a Telecommunication Device for the Deaf (TDD) only, call 1-800-248-4099 toll free. In Austin, the local TDD number is (512) 463-4621.)

Source Note: The provisions of this §3.90 adopted to be effective February 13, 1984, 9 TexReg 580; amended to be effective December 19, 1984, 9 TexReg 614; amended to be effective November 24, 1987, 12 TexReg 4196; amended to be effective November 24, 1987, 12 TexReg 4196; amended to be effective May 25, 1995, 20 TexReg 3572.

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