Transferring a title from one co-owner or co-maker to another is not a taxable transfer. Co-owners or co-makers have purchased a motor vehicle together. Both parties own the motor vehicle and, if there is a lien involved, both are jointly and separately liable for repayment of the entire loan. Taking over the sole responsibility of a lien does not make the transfer taxable, as each owner has been jointly and separately liable for the loan.
If the remaining owner gives any consideration to the former co-owner or co-maker, motor vehicle tax is due. Standard presumptive value (SPV) may apply.
Documentation should indicate that a co-owner or co-maker’s name is being removed from the loan.
If a new co-owner is added to the title and gives any consideration to the existing owner, motor vehicle tax is due. SPV procedures may apply.
Motor vehicle tax is due when a co-signer takes possession of the motor vehicle. A co-signer who has agreed to guarantee the repayment of a loan on a motor vehicle does not become liable on the loan, unless the borrower defaults on the loan. If the borrower defaults on the loan, the co-signer has the right to take ownership of the motor vehicle and assume liability of the amount remaining due on the loan. Upon taking possession, the co-signer owes motor vehicle tax on the greater of the assumed liability or 80 percent of the motor vehicle’s SPV.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.