registering a 'gift' car in TX
04-15-2006, 05:15 PM
#1
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registering a 'gift' car in TX i was given an 88GTA from a family friend that i am getting ready to register, and i need to know if there are any loopholes in TX to get around paying sales tax on it.
ok, this part is confusing, so pay attention:
the car is currently registered/titled in massachusetts, and i'm just waiting for the original owner to get a new copy of title so he can send it to me (he lost the original title when he moved to FL). MA has a sales tax exemption for cars given as gifts, so i was hoping that TX would have something similar. i know i could register it in MA using my parents house for my address to avoid paying the sales tax, but then i'd have to register/title the car twice, which would probably be more $$$ than just registering/titling the car once in TX and paying the sales tax.
i tried looking at the TX DOT website, but didnt find anything. i dont think its right to pay sales tax on an item where no 'sale' occured, so i'm hoping you guys know something that i dont.
also, am i correct in reading the TX policy that after you get the title, you need to get an inspection first, then get insurance, and then register last?
ok, this part is confusing, so pay attention:
the car is currently registered/titled in massachusetts, and i'm just waiting for the original owner to get a new copy of title so he can send it to me (he lost the original title when he moved to FL). MA has a sales tax exemption for cars given as gifts, so i was hoping that TX would have something similar. i know i could register it in MA using my parents house for my address to avoid paying the sales tax, but then i'd have to register/title the car twice, which would probably be more $$$ than just registering/titling the car once in TX and paying the sales tax.
i tried looking at the TX DOT website, but didnt find anything. i dont think its right to pay sales tax on an item where no 'sale' occured, so i'm hoping you guys know something that i dont.
also, am i correct in reading the TX policy that after you get the title, you need to get an inspection first, then get insurance, and then register last?
04-15-2006, 05:48 PM
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there is a gift tax, it is about 10 bucks, plus all the regular fee's.
no tax's on a gift.
however if you want to pay less then that, buy the car from the previous owner for a buck, then you have to pay just sales tax on that dollar. and you are correct on the titling proceedure. if you download the application for transfer of ownership, there is some info in there about what to do, and how much you'll be paying.
congrats on the 3G btw.
no tax's on a gift.
however if you want to pay less then that, buy the car from the previous owner for a buck, then you have to pay just sales tax on that dollar. and you are correct on the titling proceedure. if you download the application for transfer of ownership, there is some info in there about what to do, and how much you'll be paying.
congrats on the 3G btw.
04-15-2006, 05:54 PM
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Yea i just went through this with my truck. You have to have it inspected and insured before you get the registration. The only loop hole i know of is i said i bought the truck for 150 bucks for it sales tax and registration was under 100 bucks. My last s10 i said i had an even trade so i didnt pay anything but the registration fee. 
If this is vague pm me i can clear it up and maybe help alittle more.
If this is vague pm me i can clear it up and maybe help alittle more.
04-16-2006, 02:48 AM
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Originally Posted by mellowyellow
I think you should give it to me and not worry about it anymore.. 
. it needs the brakes tweaked (it jukes to one side when braking firmly), it idles rough when cold (think its just a vacuum line), and there is some crazy squeaking coming from the rear somewhere (think a rear suspension part just needs some grease).
Originally Posted by Spazdout
buy the car from the previous owner for a buck, then you have to pay just sales tax on that dollar
Originally Posted by Spazdout
congrats on the 3G btw.
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04-16-2006, 06:58 AM
#8
I just did a gifting of a truck from my mom.
It is a $10 fee, plus the regular fees for a Texas title transfer.
You will probably have to go a little further, though because it's an out-of-state title and a lost title to boot ....
This should anser your general questions ....
http://www.dot.state.tx.us/vtr/vtrreginfo.htm?pg=faq ...
The last part, tell them it was a gift from a relative from out of state.
It is a $10 fee, plus the regular fees for a Texas title transfer.
You will probably have to go a little further, though because it's an out-of-state title and a lost title to boot ....
This should anser your general questions ....
http://www.dot.state.tx.us/vtr/vtrreginfo.htm?pg=faq ...
Question: I just moved to Texas. How do I register my vehicle?
Answer: Your vehicle must first pass a vehicle safety inspection and an inspection of the vehicle identification number. These services are available at a state-approved Safety Inspection Station.
The inspection facility will provide you with verification form that must be submitted to the county tax office along with an application for certificate of title. Title and registration fees are due at the local county tax assessor-collector’s office at the time the application for title is made. Liability insurance is required in Texas before these services are provided.
When filing your application, please submit:
A completed Application for Texas Certificate of Title, Form 130-U.
Original out-of-state title or current foreign or military ownership document (an English translation may be required).
A completed Form VTR-68-A and proof of compliance with U.S. Department of Transportation safety requirements if you have a foreign ownership document.
Vehicle Identification Certificate, issued by an approved safety inspection station.
Valid proof of liability insurance meeting Texas requirements.
The vehicle’s current odometer reading, if the vehicle is less than 10 model years old.
Sales or use tax verification if you have not previously registered the vehicle in another state.
Answer: Your vehicle must first pass a vehicle safety inspection and an inspection of the vehicle identification number. These services are available at a state-approved Safety Inspection Station.
The inspection facility will provide you with verification form that must be submitted to the county tax office along with an application for certificate of title. Title and registration fees are due at the local county tax assessor-collector’s office at the time the application for title is made. Liability insurance is required in Texas before these services are provided.
When filing your application, please submit:
A completed Application for Texas Certificate of Title, Form 130-U.
Original out-of-state title or current foreign or military ownership document (an English translation may be required).
A completed Form VTR-68-A and proof of compliance with U.S. Department of Transportation safety requirements if you have a foreign ownership document.
Vehicle Identification Certificate, issued by an approved safety inspection station.
Valid proof of liability insurance meeting Texas requirements.
The vehicle’s current odometer reading, if the vehicle is less than 10 model years old.
Sales or use tax verification if you have not previously registered the vehicle in another state.
04-16-2006, 10:03 AM
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Originally Posted by slayer_taunu
are you 100% sure on that? in MA you pay sales tax on either the selling price, or the NADA value, which ever is greater... so you cant get away with the 'sell for $1' there.
3G? um.... thanks?
3G? um.... thanks?
Yes, I'm sure, i used to work for the state in this department. the only thing the state will use an NADA is on a bonded title. and you're no where near that.
See most people are afraid to do the dollar thing bc they are in fear of other states policies towards it. Here in texas its allright, Many companies when changing names or ownership, they end up selling there vehicles to the new owner for 1 dollar in the titling phase, especially when you have a fleet of 100 or so vehicles. its completely legal, and just mail the owner a buck or buy him a coke.
-jon
04-16-2006, 09:52 PM
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Originally Posted by nighTdecals
is this your old GTA or a new one?
