taxes

Motor Vehicle Tax Guide

Nonprofit Organizations

A nonprofit organization is not automatically exempt from paying motor vehicle tax. This includes organizations that may be exempted from federal tax or other state taxes, such as sales, franchise and/or hotel occupancy taxes. To qualify for exemption from motor vehicle tax, an organization must be either a public agency or exempt by Tax Code Chapter 152, Subchapter E, Exemptions.

Gift Tax

A nonprofit organization may qualify for the $10 gift tax as a donor or the recipient of a motor vehicle, if the organization is a nonprofit service organization qualifying under Section 501(c)(3) of the Internal Revenue Code (IRC), and the motor vehicle will be used for the purpose of the organization.

State or Federal Funds

An organization funded by the state or federal government is not automatically exempt from motor vehicle tax.

To qualify for exemption from motor vehicle tax, an organization must be either a public agency or exempt by Tax Code Chapter 152, Subchapter E, Exemptions.

Limited Sales Tax Exemption Certificate

An organization may not use Form 01-339, Texas Sales and Use Tax Resale Certificate/Exemption Certification (PDF), as set forth by Tax Code Chapter 151, Limited Sales, Excise and Use Tax, to claim an exemption from motor vehicle tax.

96-254
(09/2021)