taxes

Motor Vehicle Tax Guide

Driver Training Motor Vehicles

A driver training motor vehicle provided by a dealer is exempt from motor vehicle tax only if the motor vehicle is

• owned by a motor vehicle dealership;
• purchased in this state;
• loaned free of charge by the dealer to a public school for use in an approved standard driver training course; and
• displays exempt license plates. A public school that is loaned a motor vehicle by a dealer will apply for exempt license plates at the time of vehicle registration.

The driver training motor vehicle must meet all requirements to be exempt from motor vehicle tax.

To claim the exemption, the title applicant should indicate "Driver Training" in Box 38 of Form 130-U, Application for Texas Title and/or Registration (PDF), and list the statutory reference for this exemption, "Tax Code Section 152.081, Driver Training Motor Vehicles."

The driver training motor vehicle exemption does not apply to the loan of a motor vehicle to a private or parochial school, or a nonprofit organization.

96-254
(09/2021)