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Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts
Glenn Hegar
Texas Comptroller of Public Accounts

taxes

Use Tax for New Off-Highway Vehicles Purchased From Out-of-State Retailers

Beginning March 1, 2020, a purchaser must provide proof they paid use tax for their new off-highway vehicle (OHV), bought out of state for use in Texas, to title their OHV with their county tax assessor collector (CTAC). Use Form 130-U, Application for Texas Title and/or Registration at your CTAC to title your OHV. For more information about titling your OHV, see the Texas Department of Motor Vehicles website.

File and pay online the use tax for your purchase of a new off-highway vehicle from an out-of-state retailer and get a receipt acknowledging your payment has been made today!

Filing Options

To receive a receipt acknowledging your payment of the use tax for a new off-highway vehicle purchased from an out-of-state retailer, you can file and pay online; or submit Form 01-163, Texas Use Tax Return – For New Off-Highway Vehicles Purchased From Out-Of-State Retailers (PDF)

  • in person at a local field office; or
  • by mail to:
    Texas Comptroller of Public Accounts
    Attn: Off-Highway Vehicle Use Tax
    111 E 17th Street
    Austin TX 78774-0100
Determining the Use Tax Rate

The state use tax rate is 6.25 percent. Depending on where you use or store your off-highway vehicle, you may owe up to an additional 2 percent in local use taxes.

Use our tax rate locator to search for your tax rate by your address.

Credit for Sales Tax Paid to Another State

Texas allows a credit for sales or use tax due and payable to other states. For more information, see Rule 3.338, Multistate Tax Credit and Allowance of Credit for Tax Paid to Supplies.

Who Owes Use Tax When Buying a New Off-Highway Vehicle?

A purchaser who buys a taxable new OHV from an out-of-state retailers for use in Texas owes Texas use tax. Use tax is complementary to the Texas sales tax and is imposed on the storage, use, or other consumption of a taxable item.

OHVs include

  • all-terrain vehicles (ATVs)
  • off-highway motorcycles
  • off-highway recreational vehicles (OHRV)
  • sand rails
  • utility vehicles (UTVs)

For example, if you buy a new all-terrain vehicle (ATV) from an out-of-state retailer in Oklahoma who does not charge Texas sales tax, and you store or use the ATV in Texas, you owe Texas use tax on the price of the ATV.

For more information about the tax responsibility for vehicles designed for off-road use in Texas, see tax publications 94-438, All-Terrain or Off-Road Vehicles and Texas Use Tax (PDF) and 98-805, Motorcycles, Autocycles and Off-Highway Vehicles – Which Texas Tax is Due?

Off-Highway Vehicles – Agricultural and Timber Exemptions

Off-highway vehicles used exclusively on a farm, ranch or in a timber operation in the production of agricultural or timber products for sale, are exempt from sales and use tax. Present your Ag/Timber registration number from your courtesy card to your local county tax assessor-collector to claim your agricultural or timber exemption of your new off-highway vehicle purchased from an out-of-state retailer.

If a purchaser does not have a valid or active Ag/Timber number at the time they purchase a new off-highway vehicle from an out-of-state retailer, then the purchaser must pay use tax to the Comptroller’s office and present to the CTAC the receipt that the tax was paid. The purchaser may file a refund claim directly with the Comptroller’s office for the use tax they were required to pay. An Assignment of Right to Refund is not required in this situation.

Tax is due on off-road vehicles used for recreational riding, hunting, wildlife management or any other purpose.

For more information about sales and use tax exemptions for agricultural equipment, see Agricultural and Timber Exemptions and Texas Taxes.

Additional Resources

Need Assistance?

Contact the Comptroller’s Office at 800-252-5555 or email us.

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