Ezel / Tax Rulings / TX
TX 8009L0382E11 Motor Vehicle Tax 1980-09-10

What liability did a Texas vehicle seller face for an incorrect value affidavit or failure to provide the buyer an affidavit?

Short answer: The purchaser owed historical motor vehicle tax on every Texas retail sale, but the seller had document duties. The seller had to provide the Manufacturer's Statement of Origin, a completed joint Seller, Donor or Trader's Affidavit stating vehicle value, and other registration papers. Under article 6.06, the seller became liable for tax, penalty, and interest if the value was reported incorrectly or the affidavit was not provided.

Apply this to your situation

This page answers the general question as of 1980. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1980
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is a September 10, 1980 taxpayer-response letter; STAR metadata uses September 1, but this page follows the printed date. STAR warns that the four-percent rate is not current. Former articles 6.01, 6.05, and 6.06, paper affidavits, MSO documents, seller duties, penalties, interest, and registration procedures may have changed. The metadata says “fraudulent/false,” but the body establishes liability for incorrect value or failure to provide an affidavit without analyzing fraud elements. STAR documents may no longer represent current policy even when not marked superseded. Company details are redacted. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

A Texas vehicle seller could become liable for tax, penalty, and interest if the joint value affidavit reported the vehicle incorrectly or the seller failed to give the affidavit to the buyer.

The purchaser owed the underlying historical tax. The seller had to provide the Manufacturer's Statement of Origin, completed Seller, Donor or Trader's Affidavit, and other registration papers. Seller and buyer jointly stated the vehicle's value.

The body does not separately analyze fraudulent intent despite STAR's label.

What this means for you

Seller documentation can create direct tax exposure even when the purchaser is nominally responsible for the tax.

Common questions

Q: Who owed the retail-sale tax?
A: The purchaser.

Q: When could the seller become liable?
A: For incorrect reported value or failure to provide the required affidavit.

Citations and references

  • Texas Tax-General Statutes Annotated arts. 6.01(1), 6.05(1), and 6.06

Source

Original ruling text

ALERT: The tax rates cited in this article are no longer the current motor vehicle sales tax

or motor vehicle rental tax rates.

September 10, 1980

Dear ***:

As you discussed with ***, CORP X, as a Texas seller, must satisfy specific obligations under the Texas Motor Vehicle Sales and Use Tax Statute.

TEX. TAX.-GEN. STAT. ANN. art. 6.01(1) 1979 levies a four percent tax on every retail sale of a motor vehicle in Texas. The tax is the obligation of the purchaser.

As a Texas seller, X must give each buyer a Manufacturer's Statement of Origin, a completed Seller, Donor or Trader's Affidavit and all other papers necessary to register their bus. Article 6.05(1) requires the seller and purchaser of a motor vehicle must complete a joint affidavit, (Seller, Donor, or Trader's Affidavit) stating the value of the vehicle. I'm enclosing some Seller, Donor or Trader's Affidavits for your use. For additional affidavits please contact your county tax assessor collector's office.

The seller is responsible under article 6.06 for tax plus penalty and interest if the value of the vehicle was reported incorrectly on the joint affidavit or if the seller did not give the purchaser an affidavit.

To summarize, all sales of motor vehicles in Texas are subject to Motor Vehicle Sales Tax whether the vehicle is purchased for use or is used in Texas.

Please let me know if I can be of assistance in the future. Our toll-free number is 1-800-252-5555, ext. 173.

Respectfully yours,

Adina Harrell

Motor Vehicle Sales Tax Division

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