34 Tex. Admin. Code § 3.95 - Motor Vehicle Sales Tax Resale Certificate; Sales for Resale
(a) Sale for resale. A sale for resale is not
taxable. A sale for resale is a sale of a motor vehicle to a purchaser who is a
dealer who holds a general distinguishing number issued under Article 6686,
Revised Statutes, as amended, and the Transportation Code, Chapter 503; and
(1) holds the motor vehicle exclusively for
resale; or
(2) operates the motor
vehicle with metal dealer plates in accordance with Article 6686, Revised
Statutes, as amended, and the Transportation Code, Chapter 503.
(b) Acceptance of resale
certificate.
(1) A motor vehicle seller must
document a sale for resale by obtaining from the purchaser a properly completed
resale certificate. A properly completed resale certificate contains the
information required by subsection (e) of this section.
(2) The seller must retain properly executed
Motor Vehicle Sales Tax Resale Certificates at the seller's principal office
for at least four years from the date of sale.
(c) Blanket resale certificate. A blanket
Motor Vehicle Sales Tax Resale Certificate may be provided to a seller by a
purchaser who purchases from that seller only motor vehicles for resale. The
seller may rely on the blanket certificate until it is revoked in writing. The
information required in subsection (e)(2) of this section is not required for a
blanket resale certificate. However, vehicle identification information for
vehicles sold under blanket certificates must be retained by the
seller.
(d) Use of a motor vehicle
purchased for resale. A motor vehicle purchased for resale may be operated with
metal dealer plates in accordance with Article 6686, Revised Statutes, as
amended, and the Transportation Code, Chapter 503. Motor vehicle sales tax
imposed in the Tax Code, §
152.021, will be due on a
motor vehicle purchase by a dealer who operates a motor vehicle with a metal
dealer plate if the dealer does not hold a general distinguishing number of the
category to sell that vehicle, or if the motor vehicle is operated with other
registration. Motor vehicle dealers should be aware of the restrictions of
their dealer's license issued by the Motor Vehicle Board of the Texas
Department of Transportation. Only the holder of a valid franchised dealer's
license for a particular make or makes, may operate that make new motor vehicle
with a metal dealer's license plates.
(e) Content of a Motor Vehicle Sales Tax
Resale Certificate. Except as provided in subsection (c) of this section, the
resale certificate must show:
(1) the name
and address of the purchaser;
(2) a
description of the vehicle being purchased (including the vehicle
identification number, make of vehicle, and year model);
(3) the signature of the purchaser and the
date;
(4) the name and address of
the seller; and
(5) the purchaser's
general distinguishing number issued by the Texas Department of
Transportation.
(f) Form
of a Motor Vehicle Sales Tax Resale Certificate. The resale certificate may be
combined with related sale transaction documents that are provided to the
seller. The comptroller adopts the certificate by reference. Copies are
available for inspection at the office of the Texas Register or may be obtained
from the Comptroller of Public Accounts, Tax Administration Division, 111 West
6th Street, Austin, Texas 78701-2913. Copies may also be requested by calling
our toll-free number 1-800-252-5555. In Austin, call 463-4600. (From a
Telecommunication Device for the Deaf (TDD) only, call 1-800-248-4099 toll
free. In Austin, the local TDD number is 463-4621.)
Notes
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