assembled vehicle = no sales taxes in Texas?

madmaxx · #1 (**permalink**) 07-23-2007, 11:54 AM

I went to the court houst today (harris county, TX)and she said that I do not have to pay taxes on an assembled vehicle (New kit car). Is this true, that a 6% savings over buying used and having to pay taxes.

mr0077 · #2 (**permalink**) 07-23-2007, 12:16 PM

Maxx, that's the way it SHOULD be, since you paid sales tax on all the individual parts that you assembled into one piece, and at a higher rate (8.25%) than the rate for cars. Seems most of the guys have had to pay tax based on value or some other nebulous/nonsensical thing...hope she is right, let us know what you run into.

Gun Doc · #3 (**permalink**) 07-23-2007, 01:56 PM

MadMaxx,

I just registered my new BDR last week in Bell County. I had to pay the 6.25 % sales tax on the roller. I purchased it out of state (Vintage Motorsports CT). This is the second vehicle I have built and paid sales tax on. The first was a custom bike I built while stationed in Germany. On it, I had to pay tax on the frame. I would assume that would have to pay sales tax on the kit if you purchased it from out of state. If it was purchased in Texas, you have already paid the tax.

I posted my experience concerning the registration process in Texas on both the Registration and TCC sections last week. In them I spell out what forms and other documents are need (at least in Bell County) to register an assembled vehicle.

Gun Doc

madmaxx · #4 (**permalink**) 07-23-2007, 04:39 PM

Thanks Gun Doc and I read your emails. I agree and thought you would have to pay taxes but the clerk at the courthouse said no. I am not building one but a buddy at work is and they are said no taxes. So I guess it is hit and miss, maybe when he registers it they will change their minds. So you did not have to pay taxes on the engines and trans?

Gun Doc · #5 (**permalink**) 07-23-2007, 04:54 PM

Madmaxx,

No, I did not pay on the engine, or trans. All they asked for (and all I offered) was the MSO on the roller and the bill of sale for the same. The Stolen Auto Task Force (DPS) already had checked all the numbers and gave me the VTR68A with the notation: "No Stolen Parts."

You have to remember that all of the paperwork done at the court house ends up in Austin at the DMV. They review all of it and issue the title. Included in the packet the county sent forward on my car was a copy of the MSO and bill of sale.

Gun Doc