taxes

Motor Vehicle Seller-Financed Sales Tax

Who is responsible for this tax?

A motor vehicle seller who holds a dealer’s license from the Texas Department of Motor Vehicles and finances the vehicles it sells collects this tax on these vehicle sales when the buyer makes payment.

Rates

6.25 percent of gross receipts.

Due Date

Due dates are based on the surcharge collection amount:

  • less than $1,500 collected per month: file quarterly
  • $1,500 or more collected per month: file monthly

Returns must be filed or postmarked on or before the 20th day of the month following the end of each reporting period (for example, April 20 for March activity).

Penalties and Interest

Penalties
  • A $50 penalty is assessed on each report filed after the due date.
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $100,000

Less than $100,000

Select one of these reporting methods:

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via WebFile (American Express, Discover and MasterCard)
  • TEXNET
  • Check
$100,000 or more

$100,000 or more

Select one of these reporting methods:

TEXNET is the only acceptable payment method.

Discounts

0.5 percent for timely filing and paying plus 1.25 percent for prepaying.

Additional Resources