House Bill 2654 established new criteria for determining when a
transaction qualifies as a gift for motor vehicle tax purposes.
Effective September 1, 2009, the only transactions that qualify to be
taxed as gifts ($10) are those wherein the vehicles are received from a:
spouse, parent or stepparent, in-laws, grandparent or grandchild, child
or stepchild, sibling, guardian, decedent's estate or if it is donated
to, or given by, a nonprofit service organization qualifying under the
Internal Revenue Code, Sec. 501(c)(3).
All other motor vehicle transfers made without payment of consideration
are now defined as sales and will be subject to tax calculated on the
normal Standard Presumptive Value (SPV) of the vehicle as determined through the Registration and Title System (RTS).
Please note: The donor or recipient is the only one that may bring the paperwork into the Tax Office in order to process it.
Donor
- Complete the Assignment of Title Seller section on the certificate of title.
- Completed Affidavit of Motor Vehicle Gift Transfer - (14-317) (PDF)
- Requires notarization, unless signed in front of a county tax office employee
- Refer to page 2 for additional instructions
- Complete form Motor Vehicle Transfer Notification (VTR-346). When you submit the form a remark will be added to the vehicle record
which shows the date you sold the vehicle. This can protect you if the
buyer fails to promptly transfer the title.
Recipient
The legal name on the photo ID must match the name on all paperwork:
- Complete the Assignment of Title Buyer section on the certificate of title.
- From the date of sale, the recipient has 30 calendar days
to complete the title transfer before late fees are assessed.
- Original signature on the sales tax affidavit form Application for Texas Title - VTR-130 U (PDF)
- Completed Affidavit of Motor Vehicle Gift Transfer - (14-317) (PDF)
- Requires notarization, unless signed in front of a county tax office employee
- Refer to page 2 for additional instructions
- Valid government-issued ID
- Valid proof of Insurance on any vehicle in buyers name.
- Vehicle Inspection Report (VIR)
passed and issued within last 90 days.
- Exemptions include:
- If the vehicle was purchased out of state ask the station for the
Vehicle Inspection Report (VIR). Verify that the vehicle identification
number on the form matches your vehicle information and bring the form
to the tax office. No alterations or errors will be accepted. Original signature of the inspector is required. Inspection station locator and information.
- Any supporting documents such as Release of Lien, Power of Attorney (VTR-271), etc.
Gift Transfer Fees
- Title Application fee is $28 in Montague County
- Gift Tax $10
- Applicable registration fee
- If over 30 calendar days from the date of sale, additional title and sales tax penalties may apply.