Texas Sales Tax on Used Vehicle Purchases

I added an eBay forum posting and an eBay Wiki article notifying eBayers about a new change in Texas sales tax law concerning the tax on purchases of used vehicles. Here is the information.

The tax rate didn't change, but the base is no longer the stated sales price. Now the county tax assessor-collector will determine the tax due based on a Standard Presumptive Value (SPV), using the following guidelines:

• purchase price of the used vehicle (purchase price is greater than or equal to 80% of the SPV)
• 80% of SPV (purchase price is less than 80% of SPV)
• appraised value (purchase price is less than 80% of SPV and purchaser provides a certified appraisal)

A certified appraisal can be obtained either from a licensed Texas motor vehicle dealer (for a fee set by the Texas State Comptroller), or from a licensed insurance adjuster (for a fee to be determined by the adjuster). The certified appraisal must be obtained on a Comptroller-prescribed form within 20 days of purchase or of bringing the vehicle into Texas.

There are a few exceptions to SPV, including gifts, antique vehicles, and sales resulting from M&M liens. Check here for more information: http://www.window.state.tx.us/taxinfo/taxpnw/tpn2006/tpn606.html. Bottom line: it's probably going to cost more for some Texans to buy a used vehicle, if not in taxes, at least in fees.