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Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts

taxes

Motor Vehicle Tax Guide

Vehicles Purchased in Another Name

Occasionally, a purchaser will title and register a motor vehicle in another person’s or a company’s name, rather than the purchaser’s name, for fleet price, insurance/financial, convenience or personal reasons.

Motor Vehicle Tax

When a purchaser titles and registers a motor vehicle in the name of another person or company, motor vehicle tax is due on the purchase price.

If the motor vehicle is later transferred back to the purchaser, the motor vehicle tax may be due again, since this would be a second transaction. If no consideration (including a lien assumption) is given at the time of the second transfer, tax would be due on the standard presumptive value (SPV) provided by the Registration and Titling System (RTS), unless the transfer qualifies as a gift (in which case the $10 gift tax is due).

Exceptions

Exceptions to this provision include transfers between spouses that is not community property and changing from an individual’s name to a sole proprietor business name. In certain situations, neither motor vehicle sales and use tax nor gift tax is due.


96-254
(09/2021)

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