Sales of kits that do not contain an entire motor vehicle (e.g., contain body only) are subject to the limited sales and use tax, which the seller collects. The county tax assessor-collector (CTAC) has no responsibility to determine whether limited sales and use tax has been paid. The initial titling and registration of a completed motor vehicle is not subject to motor vehicle tax. Subsequent sales of motor vehicles are subject to motor vehicle tax.
If the owner sells the completed motor vehicle, the purchaser owes motor vehicle tax on the total consideration (e.g., price for labor and materials). Standard presumptive value (SPV) procedures may apply.
When a person purchases a complete car kit, motorcycle kit or trailer kit that contains all the component parts of a motor vehicle, motor vehicle tax is due at the time of registration. Tax is based on the purchase price of the kit. SPV procedures apply to determine motor vehicle tax due on complete motor vehicle kits sold in private-party purchases, when no licensed dealer was involved in the sale.
Glider kits, also called "glove frames" or "rebuild kits," consist of a set of parts that enable an owner to upgrade a truck or truck tractor to the equivalent of a later model motor vehicle and establish a different vehicle identification number (VIN) for the vehicle. Since the glider kit is only a set of parts, and not the entire components of a motor vehicle, no motor vehicle tax is due on the purchase of the kit. The purchaser should pay limited sales or use tax at the time of purchase. The CTAC has no responsibility to determine whether limited sales and use tax has been paid.
Since upgrading the motor vehicle is not the sale of a motor vehicle and does not change the ownership, no motor vehicle tax is due. At the time of registration of the upgraded vehicle with a different VIN, both Form 130-U, Application for Texas Title and/or Registration (PDF), and the tax receipt should indicate that no change in ownership occurred and that the owner installed a glider kit.
If the owner sells the motor vehicle after installing the glider kit, the new owner owes motor vehicle tax on the total consideration. SPV procedures may apply.