House Bill 2654 established new criteria for determining when a transaction qualifies as a gift for motor vehicle tax purposes. Effective Sept. 1, 2009, the only transactions that qualify to be taxed as gifts ($10) are those wherein the vehicles are received from a: spouse, parent or stepparent, in laws, grandparent or grandchild, child or stepchild, sibling, guardian, decedent's estate or if it is donated to, or given by, a nonprofit service organization qualifying under the Internal Revenue Code, Sec. 501(c)(3).
All other motor vehicle transfers made without payment of consideration are now defined as sales and will be subject to tax calculated on the normal standard presumptive value (SPV) of the vehicle as determined through the Registration and Title System (RTS).
The donor or recipient are the only ones that may bring in the paperwork into the Tax Office in order to process.
Recipient: legal name on photo ID must match the name on all paper work
- Complete the Assignment of Title section on the certificate of title.
- From the date of sale, the recipient has 30 calendar days to complete the title transfer before late fees are assessed.
- Original signature on the sales tax affidavit form Application for Texas Title (VTR-130 U)
- Original signature and notarize the Affidavit of Motor Vehicle Gift Transfer (14-317)
- Valid government-issued ID
- Valid proof of Insurance
- Must be in the name of all recipients.
- Insurance on another vehicle owned by the recipients can be used for the first 30 calendar days from the date of sale
- Vehicle Inspection Report (VIR) – Inspection Report showing emissions test overall passed and issued within the last 90 days. Required only if the vehicle is from out of state or was last registered or titled in a TX county without an emissions inspection program.
- Exemptions include
- Title only transfers
- Vehicles less than 2 years old or vehicles older than 24 years
- Diesel-powered vehicles, vehicles registered as an antique, motorcycle, and title only vehicles.
- If the vehicle was purchased out of state ask the station for the Vehicle Inspection Report (VIR). Verify that the vehicle identification number on the form matches your vehicle information and bring the form to the tax office. No alterations or errors will be accepted. Original signature of the inspector.
- Any supporting documents such as Release of Lien, Power of Attorney (VTR-271), etc.
Gift Transfer Fees
- Title Application fee $33
- Gift Tax $10
- Applicable registration fee
- If over 30 calendar days from sale date additional title and sales tax penalties may apply.
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