How could a person show new Texas residency for the reduced motor vehicle use tax?

Plain-English summary

The Texas Comptroller explained how Rule 3.71(b) defined a new resident for the reduced motor vehicle use tax discussed in an earlier response.

A person could generally demonstrate the required intent to live in Texas by establishing a fixed dwelling in Texas, registering to vote in Texas, or showing a legal or economic constraint to live in the state. The letter gave an employer transfer and accepting a Texas job as examples of such constraints.

What this means for you

People moving to Texas

Residency intent could be demonstrated in more than one way. The letter did not say that every listed step was required.

Tax and relocation advisers

Match evidence of residence to the current rule before claiming reduced new-resident vehicle tax; the letter's amount and standard are from 2000.

Common questions

Q: Was owning or renting a fixed Texas home relevant?

A: Yes. Establishing a fixed dwelling was one way to show intent to live in Texas.

Q: Could employment establish residency intent?

A: The letter identified an employer transfer or accepting a Texas job as examples.

Citations and references

• Rule 3.71(b)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/200007548L

Original ruling text

Date: July 31, 2000

From: Irene Cage

To: **

Subject: MV purchased overseas

Dear **:

Thank you for your most recent e-mail.

In my previous response, I advised you there is a use tax on a motor vehicles
purchased out of state and then operated in Texas. Additionally, I stated a
new resident may qualify for a $90 new resident use tax in lieu of the 6.25%.
Your question is what you need to do to qualify for Texas residency.

The definition of a new resident for tax purposes can be found in Subsection
(b) of Rule 3.71. Generally, a person may demonstrate the necessary intent to
live in Texas by establishing a fixed dwelling place in Texas, registering to
vote in Texas, or demonstrating a legal or economic constraint to live in Texas
(i.e. you are transferred by your employer or accept a job in Texas).

The rule can be viewed or downloaded from our website at:

This opinion is based on the information presented. If there are additional or
different facts, the opinion could change.

Please let me know if you have additional questions. You may call me toll free
at 1-800-531-5441, extension 3-2995. The direct number is 512/463-2995. The
e-mail address is .

Sincerely,

Irene Cage
Tax Policy Division