Used Car Tax
05-23-07, 08:16 PM
#16
Lexus Champion
However you do it you will end paying 6.25% TX sales tax. Plan on having that amount figured in the deal. TX will not let you off the hook on the state sales tax unless you can prove you paid it in another state.
I bought a new car in TX a few years ago and paid the state sales tax, then a few years later I exported the car to Canada for a couple of years. It was reregistered in Canada, and as far as the USA was concerned it didn't exist any longer. I then reexported it back to TX and had to retitle it. Technically, they could have made me pay taxes again on it as it didn't have a valid state title from anywhere in the USA. Fortunately I had all my old paperwork, but they wanted proof that sales tax had been paid in TX.
I bought a new car in TX a few years ago and paid the state sales tax, then a few years later I exported the car to Canada for a couple of years. It was reregistered in Canada, and as far as the USA was concerned it didn't exist any longer. I then reexported it back to TX and had to retitle it. Technically, they could have made me pay taxes again on it as it didn't have a valid state title from anywhere in the USA. Fortunately I had all my old paperwork, but they wanted proof that sales tax had been paid in TX.
Last edited by Evitzee; 05-23-07 at 08:23 PM.
05-24-07, 02:19 PM
#17
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Sale by Private Party:
The seller of the car in Cailfornia does not have to collect any sales or use tax because it is considered an occassional sale by the California Board of Equalization. However the buyer of the vehicle has to pay use tax to Texas Department of Revenue (Texas DMV) for the vehicle being titled and used in Texas. To sum it up there is no way of getting out of Texas tax.
Texas Tax Code
34 TAC Sec. 3.70(e) Motor vehicle use tax is due on a motor vehicle purchased outside of the State of Texas and leased and brought into the state for use upon the highway. The lessee of the motor vehicle is liable for such tax. If the lessee is a resident of this state or is domiciled or doing business in this state the tax is based upon the consideration paid outside the state by the purchaser of the motor vehicle, regardless of any use or depreciation of the vehicle subsequent to its purchase and prior to its use in this state. If the lessee is a new resident of this state as described in sec. 3.71 of this title (relating to Definition of "Resident" and "New Resident"), the new resident may pay a new resident use tax of $90 imposed by Tax Code, sec. 152.023, in lieu of the 6.25% use tax.
The seller of the car in Cailfornia does not have to collect any sales or use tax because it is considered an occassional sale by the California Board of Equalization. However the buyer of the vehicle has to pay use tax to Texas Department of Revenue (Texas DMV) for the vehicle being titled and used in Texas. To sum it up there is no way of getting out of Texas tax.
Texas Tax Code
34 TAC Sec. 3.70(e) Motor vehicle use tax is due on a motor vehicle purchased outside of the State of Texas and leased and brought into the state for use upon the highway. The lessee of the motor vehicle is liable for such tax. If the lessee is a resident of this state or is domiciled or doing business in this state the tax is based upon the consideration paid outside the state by the purchaser of the motor vehicle, regardless of any use or depreciation of the vehicle subsequent to its purchase and prior to its use in this state. If the lessee is a new resident of this state as described in sec. 3.71 of this title (relating to Definition of "Resident" and "New Resident"), the new resident may pay a new resident use tax of $90 imposed by Tax Code, sec. 152.023, in lieu of the 6.25% use tax.
Last edited by cali_guy; 05-24-07 at 02:23 PM.
Thanks for quoting the code 
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