SECTION 3.79. Standard Presumptive Value

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Appraised value--The taxable value of a used motor vehicle for the purpose of calculating motor vehicle sales tax due on the date of a certified appraisal.

(2) County working day--A day in which a county tax office is open for business to the public.

(3) Date of purchase--Same as date of sale; the day the motor vehicle is delivered to the purchaser unless otherwise specified by written agreement.

(4) Dealer--A person who holds a license issued pursuant to Transportation Code, Chapter 503, Subchapter B, or under similar regulatory requirements of another state. The term includes:

(A) a dealer who holds a franchised dealer's license issued under Occupation Code, Chapter 2301 authorized by law and by franchise agreement to offer for sale a new motor vehicle;

(B) an independent dealer authorized by law to offer for sale a motor vehicle other than a new motor vehicle;

(C) a wholesale motor vehicle dealer;

(D) a wholesale auction dealer;

(E) a motorcycle dealer;

(F) a house trailer dealer;

(G) a trailer or semitrailer dealer;

(H) an independent mobility motor vehicle dealer; or

(I) any other dealer as provided by Transportation Code, Chapter 503, Subchapter B, but not a drive-a-way operator or a salvage vehicle dealer as defined pursuant to Transportation Code, §501.091(17).

(5) Insurance adjuster--A person licensed under Insurance Code, Chapter 4101, or licensed or operating under similar regulatory requirements of another state.

(6) Motor vehicle--A self-propelled vehicle designed to transport persons or property upon the public highways and a vehicle designed to be towed by a self-propelled vehicle while carrying property. The term includes trucks, truck tractors, motor homes, automobiles, trailers, trailers sold unassembled in a kit, semitrailers, house trailers, travel trailers, dollies, jeeps, stingers, auxiliary axles, converter gears, truck cab/chassis, and motorcycles. A unit that meets the definition of a "motor vehicle" does not lose its identity as a motor vehicle if tangible personal property is added to the vehicle allowing the unit to perform a specialized function but prohibiting the vehicle from transporting separate property or persons other than the driver. An example of such a vehicle would be a truck cab/chassis upon which oil well servicing equipment is attached.

(7) Private-party transaction--A retail sale of a motor vehicle in which no party is a dealer.

(8) Retail sale--A sale of a motor vehicle other than:

(A) a sale of a new motor vehicle in which the purchaser is a franchised dealer who is authorized by law and by franchise agreement to offer the vehicle for sale as a new motor vehicle and who acquires the vehicle to sell in a manner provided by law or for purposes allowed under Transportation Code, Chapter 503;

(B) a sale of a vehicle other than a new motor vehicle in which the purchaser is a dealer who holds a dealer's license issued under Transportation Code, Chapter 503, and who acquires the vehicle either for the exclusive purpose of resale in the manner provided by law or for purposes allowed under Transportation Code, Chapter 503; or

(C) a sale to a franchised dealer of a new motor vehicle removed from the franchised dealer's inventory for the purpose of entering into a contract to lease the vehicle to another person if, immediately after executing the lease contract, the franchised dealer transfers title of the vehicle and assigns the lease contract to the lessor of the vehicle.

(9) Standard presumptive value--The private-party transaction value of a motor vehicle, as determined by the Texas Department of Motor Vehicles based on an appropriate regional guidebook of a nationally recognized motor vehicle value guide service, or based on another motor vehicle guide publication that the department determines is appropriate if a private-party transaction value for the motor vehicle is not available from a regional guidebook.

(10) Used motor vehicle--A motor vehicle that previously has been the subject of a retail sale.

(b) Calculating tax due on a used motor vehicle. Tax is due on the value of a used motor vehicle as defined in subsection (c) of this section, less any deductions as provided by Tax Code, §152.002(b).

(c) Taxable value of a used motor vehicle.

(1) Subject to the exceptions in subsections (c)(2), (c)(3), and (e) of this section, the taxable value of a used motor vehicle is the greater of:

(A) the amount paid or to be paid for the motor vehicle, or

(B) 80% of the motor vehicle's standard presumptive value.

(2) If the amount paid or to be paid is less than 80% of the motor vehicle's standard presumptive value, the purchaser may establish the taxable value of the motor vehicle for the purpose of calculating motor vehicle sales tax due by substituting a certified appraisal, as provided for in subsection (d) of this section, provided the certified appraisal is not less than the amount paid or to be paid for the motor vehicle.

(3) The taxable value of a used motor vehicle may be established by:

(A) a properly completed Application for Texas Certificate of Title, Form 130-U, signed by both purchaser and seller when the seller is a Texas dealer; or

(B) documentation, including a receipt or invoice, provided by the seller to the purchaser of the vehicle when the seller is a dealer licensed by or under similar regulatory requirements of another state.

(d) Certified appraisal to establish the taxable value of a used motor vehicle.

(1) Time limit. A purchaser must obtain and present to the county tax assessor-collector a certified appraisal within 20 county working days after the date of purchase or, if purchased out of state, within 20 county working days after bringing the motor vehicle into Texas.

(2) Appraisal form. A certified appraisal must be on comptroller form 14-128, Texas Used Motor Vehicle Appraisal Form.

(3) Appraisal standards. Upon request by a purchaser of a used motor vehicle, a dealer must provide a certified appraisal. However, a dealer may only provide appraisals for the categories of motor vehicles which the dealer is licensed to sell under Transportation Code, Chapter 503, Subchapter B. An insurance adjuster may appraise any type of used motor vehicle. The dealer or insurance adjuster must view the motor vehicle in person and provide all the information requested on appraisal form 14-128 for the appraisal to be valid, including the appraised value of the used motor vehicle.

(4) Appraisal fee.

(A) Except as provided by clause (i) and (ii) of this subparagraph, a dealer may charge no less than $100 and no more than $300 for a certified appraisal:

(i) a licensed motorcycle dealer may charge no less than $40 and no more than $300 for a certified appraisal of a motorcycle; and

(ii) a dealer may charge no less than $100 and no more than $500 for a certified appraisal of a house trailer, travel trailer, or motor home.

(B) An insurance adjuster is not limited to the amount charged for a certified appraisal under this section.

(C) The fee for a certified appraisal is not subject to limited sales and use tax under Tax Code, Chapter 151, and is not subject to motor vehicle sales and use tax under Tax Code, Chapter 152.

(5) Retention of certified appraisals. A county tax assessor-collector shall retain a certified appraisal for four years from the end of the current fiscal year in which it is presented and accepted.

(6) Questioning a certified appraisal. A county tax assessor-collector may question a certified appraisal in the manner as provided in Tax Code, §152.062(e).

(e) Excluded vehicles. This section does not apply to:

(1) vehicles involved in an even exchange or trade, as provided by Tax Code, §152.024;

(2) vehicles received as a gift, as provided by Tax Code, §152.025 and §3.80 of this title (relating to Motor Vehicles Awarded as Prizes);

(3) vehicles acquired through a mechanic's lien, as provided in Property Code, Chapter 70;

(4) vehicles acquired through a storage lien, as provided by Occupations Code, Chapter 2303;

(5) abandoned or abandoned nuisance vehicles acquired under Transportation Code, Chapter 683;

(6) vehicles eligible for a specialty license plate as a classic motor vehicle, as provided in Transportation Code, §504.501; and

(7) vehicles acquired from a governmental entity either directly or through public auction. A governmental entity includes but is not limited to the federal government or an agency, department, instrumentality or wholly owned corporation of the federal government; or a state, territory or possession of the United States or any agency, department, county, city, special district, or other political subdivision of a state, territory or possession of the United States.

(f) Payments under protest and refunds.

(1) Persons seeking the recovery of payments under protest and refunds relating to this section must follow the provisions set forth in §3.75 of this title (relating to Refunds, Payments Under Protest, Payment Instruments and Dishonored Payments).

(2) If the purchaser of a used motor vehicle paid less than 80% of standard presumptive value and paid tax on a taxable value as determined by subsection (c)(1)(B) of this section, the purchaser may request a refund from the comptroller if the purchaser obtains a valid certified appraisal within 20 county working days of the motor vehicle's purchase or use in Texas, provided the value of the certified appraisal is not less than the amount paid or to be paid for the motor vehicle.

Source Note: The provisions of this §3.79 adopted to be effective October 1, 2006, 31 TexReg 8001; amended to be effective May 16, 2010, 35 TexReg 3649