When could a Texas county tax assessor accept personal checks for vehicle tax, and what happened if a check was dishonored?

Plain-English summary

A county collector could accept a personal check, but the tax remained unpaid until the check cleared.

If a check was dishonored, the assessor could avoid personal liability by reporting all identification required by historical Ruling .035 on Form 2C00-2.14. The Comptroller then issued liability-relief notice and monthly-report credit instructions. The Form 31 receipt was reported in sequence but stayed invalid until payment.

If dishonored checks exceeded two percent of tax due the State on a required report, the Comptroller could prohibit further personal-check acceptance. A collector who ignored that notice became liable for later checks accepted.

The collector could notify the maker, law enforcement, and Comptroller that the check failed and receipt was invalid. Comptroller collection assistance required compliance with Ruling .035 and a certified form plus the check or a legible copy of both sides.

What this means for you

The bulletin separated provisional check acceptance from final tax payment and conditioned collector protection on detailed reporting and collection steps.

Common questions

Q: Was tax paid when the check was handed over?
A: No, only when the bank honored it.

Q: Was Form 31 valid after a dishonored check?
A: No, not until payment was made.

Q: Could the Comptroller stop an assessor from taking personal checks?
A: Yes, after the stated two-percent threshold and notice.

Citations and references

• Texas House Bill 1976
• Ruling .035

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/7709L2006D11

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

September 2, 1977

MOTOR VEHICLE SALES TAX BULLETIN - No. 1977 - D

To: All County Tax Assessor-Collectors

SUBJECT: DISHONORED CHECKS

Ladies and Gentlemen:

House Bill 1976 became effective August 29, 1977. This bill provides for
the acceptance of checks by the County Tax Assessor-Collector for payment
of Motor Vehicle Sales and Use Tax and provides procedures for the
collection of dishonored checks.

A Tax Assessor-Collector may accept personal checks in payment of motor
vehicle tax, but the tax is not considered paid until the check is
honored
by the bank on which the check was drawn.

A Tax Assessor-Collector will not be held liable for the amount of motor
vehicle tax due on a dishonored check, provided all of the identification
required in Ruling .035 is reported to the Comptroller on Form 2C00-2.14.
Upon receipt of a properly completed Form 2C00-2.14, notification
relieving
the Assessor-Collector of tax liability and instructions for taking a
credit
on his monthly motor vehicle report will be issued by this office. The
Form
31 receipt must be timely reported in sequence as issued, but is not
valid
until payment of the tax is made.

If more than 2% of the motor vehicle tax due the State on any required
report
is not remitted because of dishonored checks, the Tax Assessor-Collector
will be notified that he may not accept a personal check for payment of
motor
vehicle tax. A Tax Assessor-Collector who accepts a personal check after
notice is given by the Comptroller is liable to the State for the amount
of
all personal checks accepted thereafter.

The Tax Assessor-Collector may establish collection procedures for
dishonored
checks which include (a) notifying the maker that the check has not been
honored and the Form 31 receipt is not valid until payment of the tax is
made; (b) notifying the sheriff or other law enforcement officer that a
check has not been honored and that the Form 31 receipt is not valid; and
(c) notifying the State Comptroller of Public Accounts of the non-payment
and invalid receipt.

The Comptroller will assist in the collection of a dishonored check only
after all requirements of Ruling .035 have been satisfied.

Form 2C00-2.14 must be completed in detail, certified by the County Tax
Assessor-Collector and reported to the Comptroller along with the
dishonored
check or a legible photostatic copy of the front and back of the
dishonored
check.

Yours very truly,
Richard Montgomery
Director