Texas Comptroller Manual of Accounts - Fiscal 2025
Revenue Object 3016 – Motor Vehicle Sales and Use Tax – Seller Financed Motor Vehicles

On a seller financed motor vehicle sale, the seller shall add motor vehicle sales and use tax to the sales price of the vehicle. The tax shall be collected and remitted to the Comptroller's Office by the seller.

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).

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.

As the seller receives the proceeds of the sale.

Statutory allocation of 25% to Foundation School Account 0193 and 75% to General Revenue Fund 0001 made through 8-31-95. Dedications eliminated per § 403.094, Government Code and no further allocations made effective 8-31-95.

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

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

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.