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Ezel / Tax Rulings / TX
TX 8012L0197D03 Motor Vehicle Tax 1980-12-08

Did Texas allow credit for tax paid to Mexico when an international-commerce vehicle entered Texas and obtained Texas registration?

Short answer: No. The Comptroller's legal staff said a vehicle entering Texas from Mexico owed historical motor vehicle tax when the operator applied for Texas registration. Because the vehicle came from a foreign country rather than another U.S. state, no credit was allowed for tax previously paid. The printed four-percent rate is historical and STAR expressly says it is not current.

Apply this to your situation

This page answers the general question as of 1980. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1980
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is a December 8, 1980 Comptroller letter to a county motor vehicle tax supervisor; STAR metadata uses December 1, but this page follows the printed date. STAR warns that the four-percent rate is not current. International-commerce, registration, federal protections, treaty issues, foreign-country credits, import rules, and Texas use tax may have changed. The body gives only the conclusion of legal staff and cites no statute. STAR documents may no longer represent current policy even when not marked superseded. The recipient name is 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

A vehicle entering Texas from Mexico owed historical motor vehicle tax when the operator applied for Texas registration, with no credit for tax paid to a foreign country.

The legal staff distinguished tax paid to another U.S. state from tax paid to Mexico. The source's four-percent rate is historical.

What this means for you

Do not assume an other-state credit covers foreign taxes. Current international-commerce, import, registration, and credit rules require separate review.

Common questions

Q: What triggered Texas tax in the letter?
A: Applying for Texas registration after entering from Mexico.

Q: Was prior Mexican tax credited?
A: No.

Citations and references

The letter cites no numbered statute or rule and references an enclosed 1976 Webb County letter not reproduced here.

Source

Original ruling text

ALERT: The tax rates cited in this article are no longer the current motor vehicle sales tax
or motor vehicle rental tax rates.

COMPTROLLER OF PUBLIC ACCOUNTS

STATE OF TEXAS

AUSTIN, 78774

BOB BULLOCK

Comptroller

December 8, 1980

Supervisor of Motor Vehicle Tax

Hidalgo County

P. O. Drawer 178

Edinburg, Tx. 78539

Dear ***:

I have researched your question concerning tax due on vehicles engaged in international commerce entering Texas from Mexico. Our legal staff has determined that when a motor vehicle enters Texas from Mexico and the operator applies for Texas registration, the 4% motor vehicle tax is due. Since the vehicle is entering from a foreign country instead of another state, no credit could be given for tax previously paid.

I am enclosing a copy of a letter which we mailed to Webb County in 1976 when they asked the same question. I trust that this information will assist you in the operation of your office.

If we can be of any further assistance, please feel free to contact us at any time.

Yours very truly,

Luther Elmore

Motor Vehicle Sales Tax Division

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