Ezel / Tax Rulings / TX
TX 9308L1255B01 Motor Vehicle Tax 1993-08-27

Was Texas motor vehicle tax due when an owner transferred vehicle title to a living trust created for that same owner's benefit?

Short answer: No. The Tax Administration Division said motor vehicle tax was not due when a person transferred vehicle title into a living trust established for that same person's benefit.

Apply this to your situation

This page answers the general question as of 1993. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1993
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 an official Texas Tax Administration letter issued on one 1993 transfer to a living trust for the transferor's own benefit. It predates modern Private Letter Ruling reliance terms and cannot bind the Comptroller for unrelated taxpayers. The response does not address irrevocable trusts, different beneficiaries, consideration, liens, later distributions, gifts, title procedure, or current trust law. Taxpayer-identifying 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

The Texas Tax Administration Division said no motor vehicle tax was due when an owner transferred vehicle title into a living trust established for that same owner's benefit.

The short response did not address trusts for other beneficiaries, consideration, assumed debt, or later transfers out of the trust.

What this means for you

Vehicle owners and estate-planning professionals

The historical no-tax result was limited to a same-beneficiary living trust.

Title professionals

Current title documents and trust-transfer procedures should be verified separately.

Common questions

Q: Was the described transfer taxable?

A: No.

Q: Did the letter cover a trust for someone else?

A: No.

Citations and references

  • The letter did not identify a statute or administrative rule by number.

Source

Original ruling text

August 27, 1993

Dear *:

This is in response to your letter dated August 6, 1993, requesting a
written statement regarding motor vehicle tax as it applies to a
vehicle's title being transferred into the name of a living trust.

Motor vehicle tax is not due when a vehicle is transferred from one name
into the name of a living trust that has been set up for the benefit of
the person that is transferring the vehicle into the living trust.

If you have any questions or need more information, please write or call
me at 1-800-531-5441, extension 5-0330, or 512/463-4600.

Sincerely,

Bettie Peterson
Tax Administration Division

NOTE: Previous Accession Number 93070141L.2 adn/or 9307141L

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