Did a vehicle brought into Texas owe motor vehicle use tax or the historical new-resident tax?

Plain-English summary

The Texas Tax Administration Division said a vehicle purchased outside Texas and brought into the state for highway use generally incurred motor vehicle use tax. The historical rate was 6%, with credit for legally paid motor vehicle sales or use tax in another state.

If the vehicle had already been registered in the owner's name in another state, the owner might qualify under Rule 3.71 as a new resident. The letter said a qualifying new resident would instead owe the then-$15 new-resident tax.

The county tax assessor-collector handled registration, licensing, tax, and fees. The agency forwarded the request to that office.

What this means for you

New Texas residents

Prior registration in your name was relevant, but the letter did not decide whether this requester actually qualified. Verify today's eligibility rules and tax amount.

Vehicle owners

The cited rates and procedures are historical. Keep proof of vehicle tax paid to another state when seeking any available credit.

Common questions

Q: Did every vehicle brought into Texas owe the new-resident tax?

A: No. The letter conditioned that treatment on qualifying as a new resident.

Q: Did the letter decide that this requester qualified?

A: No. It said the owner "may qualify" and referred to Rule 3.71.

Q: Who handled registration and collection?

A: The county tax assessor-collector.

Citations and references

• 34 Tex. Admin. Code Rule 3.71 — referenced and enclosed for historical new-resident qualification; its text is not reproduced in the STAR document.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/9107L1144C03

Original ruling text

ALERT: The tax rates (including the New Resident rate) cited in this article are no longer the current motor vehicle sales tax or motor vehicle rental tax rates.

July 9, 1991

Dear **:

Thank you for your letter regarding the licensing and registration
of your vehicles in Texas.

There is a 6% motor vehicle use tax imposed on a motor vehicle purchased
outside of Texas and brought into Texas for use on the public highways
of this state (with credit allowed for motor vehicle sales or use tax
paid to another state). If you bring into Texas a vehicle which has been
registered in your name in another state, you may qualify for the New
Resident Tax (see enclosed Rule 3.71). If you do qualify as a new
resident, the applicable tax would be the $15 New Resident Tax.

The actual registration, licensing, and collection of tax and fees
are handled by the county Tax Assessor-Collector's office. I am
forwarding a copy of your letter to that office for reply.

This opinion is based on the facts provided. If there are additional
or different facts, the opinion may change.

If you have any tax questions, please don't hesitate to call toll
free at 1-800-252-5555.

Sincerely,

Joan Hale
Tax Administration Division