Texas Comptroller Manual of Accounts - Fiscal 2024
Revenue Object 3004 – Motor Vehicle Sales and Use Tax

A tax of 6.25% of retail sale price of each motor vehicle sold in this state or purchased outside this state and used in Texas, less value of any trade-in (152.021, 152.022 and 152.028).

A $90 use tax on a motor vehicle brought into Texas previously registered in the new resident's name in another state or country. The tax on a motor vehicle to be issued exhibition vehicle specialty plates is the lesser of $90 or 6.25% (152.023). A $5 tax is paid by each party in an even exchange of two motor vehicles (152.024). A $10 tax is imposed on the recipient of a gift motor vehicle (152.025). $25.00 tax per issued metal dealer plate (152.027).

A Texas emissions reduction plan surcharge is imposed on the retail sale, lease or use of every diesel motor vehicle over 14,000 pounds. The surcharge is 2.5% for a 1996 or earlier model vehicle and 1% on 1997 or later vehicles. The surcharge does not apply to a recreational vehicle not used to produce income (152.0215).

The amount of motor vehicle taxes, received by the Comptroller and calculated off the vehicle's standard presumptive value, is to be deposited to the Property Tax Relief Fund 0304 (152.1222).

Beginning 2006 the county tax assessor may retain 5% of motor vehicle taxes and penalties collected in the preceding year. This was phased in with the county retaining 10% of the 5% in 2006 and increasing that share each year by 10%. In 2015, the county will retain the full 5%.

Beginning September 1, 2019 through August 31, 2029, 35% of all motor vehicle sales taxes above the first $5 billion collected each fiscal year are allocated to the State Highway Fund (0006). See transfer code 7928/3928.

The due date is based on tax collections during the previous state fiscal year. If collections were less than $2 million, then the due date is on the 10th of each month. If collections were between $2 million and $10 million, then once a week. If collections were over $10 million then it is due daily.

Formerly deposited to Omnibus Tax Clearance Fund (No. 0120). Fund abolished by H.B. 872, 67th Leg. R.S. 

H.B. 61, 70th Leg., 2nd C.S. increased tax from 5% to 6%.

H.B. 11, 72nd Leg., 1st C.S. increased tax from 6% to 6.25%.

H.B. 122, 68th Leg., 2nd C.S. added tax allocation of 25% deposited to the Foundation School Fund (0193), 10% deposited to the State Highway Fund (0006) (see 3933 in Transfer section), and the remainder to General Revenue. H.B. 79, 69th Leg., 3rd C.S. suspended these allocations from February 1, 1987 to August 31, 1987. For this period, funds were allocated 25% to Foundation School Fund (0193)and 75% to GR. H.B. 63, 70th Leg., 2nd C.S. repealed original allocations and left at 25% to Foundation School Fund and 75% to GR. Statutory allocation of 25% to Fund 0193 and 75% to Fund 0001 made through August 31, 1995. S.B. 3, 72nd Leg., 1st C.S created Government Code 403.094(h) which eliminated allocation/dedication effective August 31, 1995. 

H.B. 2140, 76th Leg., R.S. increased the tax on vehicles brought into Texas from $15 to $90.

Surcharge added by S.B. 5, 77th Leg., R.S.

Surcharge amended by H.B. 1365, 78th Leg., R.S.

Surcharge exception added by S.B. 867, 79th Leg., R.S. 

Exhibition plate exception added by S.B. 338, 79th Leg., R.S.

Property Tax Relief Fund deposit added by H.B. 2, 79th Leg., 3rd C.S.

Surcharge extended from September 1, 2008 to September 1, 2010 by H.B. 2481, 79th Leg., R.S.

Surcharge extended to September 1, 2013 by S.B. 12, 80th Leg., R.S.

Surcharge extended to September 1, 2019 by H.B. 1796, 81st Leg., R.S.

Phased in 5% county assessor provision added by H.B. 3588, 78th Leg., R.S.

H.B. 3097, 81st Leg., R.S. transfers some duties from Texas Department of Transportation to the Texas Department of Motor Vehicles.

Allocation to the State Highway Fund (0006) proposed by S.J.R. 5, 84th Leg., R.S. and adopted by voters November 3, 2015.

H.B. 3745, 86th Leg., R.S. extended surcharge expiration from 8-31-19 to the date the commission publishes the notices required under Health and Safety code 382.037.

Effective 9/1/2021, H.B. 3745, 86th Leg., R.S. changed deposit of surcharge from GR account 5071 to the new Texas Emissions Reduction Plan Trust Fund 1201 outside of the state treasury.