Off-Highway Vehicles

If you buy an off-highway vehicle (OHV) outside Texas for use in this state, or you buy a used OHV in this state and the seller does not collect tax, you owe Texas use tax. Examples of off-highway vehicles include all-terrain vehicles (ATVs), dirt bikes, golf carts, go-carts, sand rails, utility vehicles (UTVs) and any other motor vehicle designed for use off public streets and highways.

Use Tax

Use tax is complementary to Texas sales tax and is imposed on the storage, use, or other consumption of a taxable item, such as an OHV, in this state. Use tax applies to both businesses and individuals, and is imposed when taxable items (including OHVs and accessories) are first brought into Texas. The use tax rate is the same as the sales tax rate, but based on where the item is being used, not where the item was purchased. The state use tax rate is 6.25 percent. Depending on where you use or store your OHV, you may owe up to an additional 2 percent in local use taxes.

New Off-Highway Vehicles Purchased From Out-Of-State Retailers

Beginning March 1, 2020, a purchaser must provide proof they paid use tax for their new OHV, bought out of state for use in Texas, to title their OHV with their county tax assessor collector (CTAC). A new OHV is one that has not been subject to tax under a previous sale. Use Form 130-U, Application for Texas Title and/or Registration (PDF) at your CTAC to title your OHV. For more information about titling your OHV, see the Texas Department of Motor Vehicles website.

You can file and pay the use tax online for your purchase of a new off-highway vehicle from an out-of-state retailer and get a receipt acknowledging your payment has been made today.

Filing Options

To receive a receipt acknowledging your payment of the use tax for a new off-highway vehicle purchased from an out-of-state retailer, you can file and pay online; or submit Form 01-163, Texas Use Tax Return – For New Off-Highway Vehicles Purchased From Out-Of-State Retailers (PDF)

in person at a local field office; or
by mail to:

Texas Comptroller of Public Accounts
Attn: Off-Highway Vehicle Use Tax
111 E 17th Street
Austin TX 78774-0100

For more information about the tax responsibility for new OHVs purchased outside Texas for use in this state, see Use Tax For New Off-Highway Vehicles Purchased From Out-Of-State Retailers.

Purchase of Used Off-Highway Vehicles

When sales or use tax is not charged by a seller on a taxable item, such as a used OHV, you are required by law to report and pay (PDF) use tax directly to the Texas Comptroller of Public Accounts. You should voluntarily comply and pay use tax because it's the law, and you will avoid being billed by the Comptroller's office for unpaid use tax (and any additional penalty and interest). To ensure Texas residents follow Texas tax laws, our office gathers information of purchases from various sources, and bills Texas residents who owe use tax.

Filing Options

If you have a Texas Sales and Use Tax Permit, and the seller did not collect Texas sales or use tax on the vehicle, report and pay the use tax on your next Texas Sales and Use Tax Return in Item 3, "Taxable Purchases."

If you do not have a Texas Sales and Use Tax Permit, and the seller did not collect Texas sales or use tax on the vehicle, report and pay the use tax on Form 01-156, Texas Use Tax Return (PDF).

Tax Exemption

Exemptions from sales or use tax are typically offered based on the type of buyer.

Sales for Resale

If you have a Texas Sales and Use Tax Permit, you can use a Form 01-339 (front), Texas Sales and Use Tax Resale Certificate (PDF) to purchase OHVs tax free that you intend to resell to your customers from the seller.

Agriculture and Timber

Off-highway vehicles used exclusively on a farm, ranch or in a timber operation in the production of agricultural or timber products for sale are exempt from sales and use tax.

For more information about sales and use tax exemptions for agricultural and timber equipment, see Agricultural and Timber Exemptions.

Exempt Organizations

Certain nonprofit and government organizations are eligible for exemption from paying Texas taxes on their purchases. If an exempt organization purchases an OHV, the purchase must relate to the organization's exempt purpose to qualify for tax exemption. Employees and volunteers cannot buy personal items tax free, even if traveling on official business or if reimbursed by the exempt organization.

If an exempt organization has qualified for sales tax exemption with the Comptroller's office, it can claim a use tax exemption when it buys a taxable item by giving the seller a properly completed Form 01-339 (back), Texas Sales and Use Tax Exemption Certification (PDF).

For more information about sales and use tax exemptions for exempt organizations, see Nonprofit and Exempt Organizations – Purchases and Sales.

Use Tax Rate

The state use tax rate is 6.25 percent. Depending on where you use or store your OHV, you may owe up to an additional 2 percent in local use taxes.

Use our tax rate locator to search for your tax rate by your address.

If you paid another state's sales or use tax on the OHV, you can take a credit for the tax paid to the other state.

Due Dates

If you have a Texas Sales and Use Tax Permit, report and pay on your next scheduled payment date.

If you do not have a sales tax permit, the tax return and payment are due on or before the 20th day following the month when you brought the vehicle into Texas. If the 20th day is a Saturday, Sunday or legal holiday, the next business day is the due date.

Additional Resources

94-438
(04/2021)

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