Off-highway vehicles (OHVs) are designed for use off public streets and highways. OHVs include all-terrain vehicles (ATVs), off-highway motorcycles (OHMs), recreational off-highway vehicles (ROHVs), sand rails (SRs) and utility vehicles (UTVs).
The following are examples of off-highway vehicles:
An OHV is subject to Texas sales or use tax in Tax Code Chapter 151, and is not subject to motor vehicle tax.
When an OHV is purchased in Texas, the seller is responsible for collecting the Texas sales tax.
When an OHV is purchased out of state, the purchaser is responsible for remitting the Texas use tax. Use tax is a complement to the sales tax and is due on all OHVs purchased outside Texas and brought into Texas for use.
Some OHVs may be titled under Transportation Code Chapter 501. In a few situations, the vehicles may also be registered and operated with "slow-moving vehicle" signs. If the vehicle is not manufactured for highway use, no motor vehicle tax is due. Titling and/or registering an OHV does not require payment of motor vehicle tax.
As of March 1, 2020, a purchaser must provide proof of exemption or use tax paid to the Comptroller’s office when submitting an application for title on a new OHV with their county tax assessor collector (CTAC). For example, if a purchaser buys a new ATV from an out-of-state retailer in Oklahoma who does not charge Texas tax, and the purchaser stores or uses the ATV in Texas, Texas use tax is due.
A purchaser may remit use tax for an OHV by paying online or by mail using Form 01-163, Texas Use Tax Return – for New Off-Highway Vehicles Purchased From Out of State Retailers (PDF).
A CTAC may verify if a retailer holds a Texas sales and use tax permit on our Sales Taxpayer Search webpage.
A purchaser may qualify for an ag/timber exemption if the OHV is used in a qualifying exempt manner and the ag/timber number is provided on Form 130-U, Application for Texas Title and/or Registration (PDF).
A CTAC may verify if a purchaser holds an ag/timber number on our Ag/Timber Registration webpage.
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