Each of the following transactions is subject to the $10 gift tax:
If the heir assumes a debt or gives other consideration to the estate of the deceased person to whom the inherited motor vehicle belonged, motor vehicle tax is due and standard presumptive value (SPV) procedures may apply.
Note: The estate may owe motor vehicle tax on any motor vehicle that has not been previously titled and registered and on which Texas tax has not been previously paid.
When a motor vehicle is transferred by the heir(s) of a deceased person to another person, two taxable transactions have taken place. First, the heir(s) owes tax (either motor vehicle use tax or gift tax) on acquiring the vehicle from the estate. Second, the person receiving the vehicle from the heir(s) also owes motor vehicle tax. The second transaction is subject to motor vehicle use tax, unless the person receiving the vehicle is a qualifying recipient and the $10 gift tax applies.