TX 7708L2015B10 Motor Vehicle Tax 1977-08-18

Did a Texas dealer owe vehicle tax while its vehicle was used in Germany before a later Texas sale or use?

Short answer: No tax was due on the described vehicle while the relevant use occurred in Germany and no Texas sale or use had occurred. Motor vehicle sales or use tax would become due once a sale or use took place in Texas. As a licensed Texas dealer, the company could reassign titles and manufacturers' statements of origin without tax.

Apply this to your situation

This page answers the general question as of 1977. Ezel answers yours, under current Texas tax law, with citations.

Disclaimer: This is an August 18, 1977 taxpayer-response letter about a licensed Texas dealer's vehicle used in Germany. Dealer status, foreign purchase and use, Texas sale or use, importation, title and MSO reassignment, resale, tax timing, and highway-department procedures may have changed. The letter said tax would arise after a Texas sale or use but did not decide the amount or a specific later transaction. The referenced title and MSO endorsements are not included in STAR's text. STAR documents may no longer represent current policy even when not marked superseded. Names are redacted. This summary is informational only and is not legal or tax advice.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

No Texas motor vehicle sales or use tax was due before a Texas sale or use occurred.

The inquiry involved the dealer's vehicle being used in Germany. On the stated facts, the letter found no Texas sale or use at that stage.

Once the vehicle was sold or used in Texas, motor vehicle sales or use tax would be due. The licensed Texas dealer could reassign titles and manufacturers' statements of origin without tax, but needed to ask the highway department about endorsements on the two MSOs discussed.

What this means for you

The answer turned on the location and timing of sale or use, plus the company's licensed-dealer status. It did not say the vehicle was permanently exempt after entering a Texas transaction.

Common questions

Q: Did use in Germany create Texas tax?
A: No, on the stated facts.

Q: What event would create tax?
A: A sale or use in Texas.

Q: Could the licensed dealer reassign titles and MSOs without tax?
A: Yes.

Citations and references

No statute or rule was cited in the letter.

Source

STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
Opinion: https://star.comptroller.texas.gov/view/7708L2015B10

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

August 18, 1977

Dear ***:

In reference to your inquiry concerning *** and his use of
your vehicle in Germany, neither a sale or a use tax was made in Texas
for the vehicle in question by ****. Therefore, no tax is due.

Once a use or sale takes place in Texas, the Motor Vehicle Sales and Use
Tax would be due.

Since you are a licensed Texas dealer, you can reassign titles and MSO's
without Motor Vehicle Sales and Use Tax due. You need to contact the
State
Department of Highways and Public Transportation concerning the
statements
made on the back of both MSO's for *****'s vehicle, and the
Mercedes
assigned to your company.

Any correspondence in this matter should be directed to the attention of
the
Motor Vehicle Sales Tax Division or call toll free 1-800-252-5555,
extension
134.

Yours very truly,
Tom Gay
Motor Vehicle Sales Tax

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