Motor Vehicle – Seller-Financed Sales Tax

Who is responsible for this tax?

A motor vehicle seller who holds a dealer’s license from the Texas Department of Motor Vehicles and finances the vehicles it sells collects this tax on these vehicle sales when the buyer makes payment.

Rates

6.25 percent of gross receipts.

Due Date

Due dates are based on the tax collection amount:

• more than $500 collected per month: file monthly
• less than $500 collected per month: file quarterly

Returns must be filed or postmarked on or before the 20th day of the month following the end of each reporting period (for example, April 20 for March activity).

Penalties and Interest

Penalties

• A $50 penalty is assessed on each report filed after the due date.
• If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
• If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.

Interest

• Past due taxes are charged interest beginning 61 days after the due date.
• To calculate interest on past due taxes, visit Interest Owed and Earned.

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $500,000

Select one of these reporting methods:

• Webfile
• Tax Forms

Select one of these payment methods:

• Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
• TEXNET
• Check

$500,000 or more

Select one of these reporting methods:

• Webfile
• Tax Forms

TEXNET is the only acceptable payment method.

Discounts

0.5 percent for timely filing and paying plus 1.25 percent for prepaying.

Additional Resources

• Refunds
• Motor Vehicle Taxpayer Status Search
• All Motor Vehicle Taxes