How did Texas tax a vehicle brought into the state by a new resident in 1997?

Plain-English summary

The Texas Comptroller's 1997 letter described a special flat $15 tax for a vehicle brought into Texas by a new resident instead of the ordinary 6.25% sales or use tax.

To qualify, the vehicle first had to be registered to the new resident outside Texas. New and used vehicles otherwise used the same 6.25% rate. The county tax assessor-collector handled registration and tax collection, and the letter estimated registration fees at about $55.

STAR now expressly warns that the tax rates in this document, including the new-resident rate, are no longer current. The historical amounts should not be used for a present transaction.

What this means for you

New Texas residents

Check current rates and eligibility; this page records only the 1997 rule.

Relocation advisers and accountants

Prior registration to the same resident was an express historical condition.

County tax assessor-collectors

The letter assigned local registration and tax collection to the county office.

Common questions

Q: Were new and used vehicles taxed at different ordinary rates?

A: No. The 1997 letter stated the same 6.25% rate.

Q: What qualified for the special new-resident amount?

A: A vehicle first registered to the new resident elsewhere.

Q: Are the quoted rates current?

A: No. STAR expressly says they are obsolete.

Citations and references

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

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/9706478L

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.

June 9, 1997

Thank you for your inquiry concerning the motor vehicle tax imposed on bringing
a vehicle into this state.

The motor vehicle sales/use tax rate is 6 1/4% of the purchase price. New and
used vehicles are taxed at the same rate. However, vehicles brought into this
state by a new resident are generally taxed at a flat $15 in lieu of the usual
6 1/4%. In order to qualify for the new resident provision the vehicle must
first be registered to the new resident elsewhere. Registration fees vary must
are usually about $55. Registration and tax collection are handled locally at
the County Tax Assessor-Collector's office.

If you have any questions please do not hesitate to contact this office.

Curt Swenson
[email protected]