What may a vehicle leasing company show a Texas county as proof that motor vehicle tax was paid to another state?

Plain-English summary

The Texas Comptroller explained that no statute defined what evidence a county had to accept as proof that tax was paid to another state. Each county tax assessor-collector therefore had authority to decide, and acceptable documentation could vary by county.

When the other state did not issue its own proof-of-tax form, the letter identified two possible records: a copy of the original lease showing that the lease payments included motor vehicle tax paid by the lessee, or a notarized statement from the leasing company stating the tax paid by the lessee.

What this means for you

Vehicle leasing companies

Keep the original lease and tax-payment records available. A notarized lessor statement was acceptable under this response, but a county could set its own evidentiary requirements.

County tax offices and fleet operators

The letter did not impose one statewide document standard. Confirm the receiving county's current requirements before submitting a title or tax-credit claim.

Common questions

Q: Did every Texas county have to accept the same proof?

A: No. The letter says each county tax assessor-collector had authority to decide what was acceptable.

Q: What if the other state did not issue a tax-paid form?

A: The Comptroller said acceptable proof could include the original lease showing tax in the payments or a notarized leasing-company statement of tax paid by the lessee.

Citations and references

• The letter states that no statute defined acceptable proof but does not cite a specific section.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/200208331L

Original ruling text

August 6, 2002

Dear **:

Thank you for your letter about motor vehicle tax. I am pleased to be of
assistance.

You asked what a leasing company could provide to Texas counties as acceptable
proof of sales tax paid to another state. You faxed a copy of a notarized
letter issued by a leasing company that has been accepted by some counties and
rejected by others. You asked if this letter is not sufficient, then what
would be acceptable proof when a state issued form of sales tax paid is not
available.

There is no statutory provision defining what is acceptable proof of tax paid
to another state. Each County Tax Assessor-Collector has the authority to
determine the acceptable proof and it may vary among the counties.

Absent proof of tax paid issued by another state, acceptable proof may include
a copy of the original lease agreement verifying the lease payments in the
contract included motor vehicle tax paid by the lessee. A notarized statement
from the leasing company of tax paid by the lessee is acceptable.

A complete set of rules, the entire text of the Tax Code, and other information
are available through our website at .

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

If you have any questions or need more information, I will be glad to help you.
You may e-mail me at , or you may call me toll-free
at 1-800-531-5441, extension 3-4622.

Sincerely,

Stefanie B. Medack
Tax Policy Division