Texas Tax Code
§ 152.047 — COLLECTION OF TAX ON SELLER-FINANCED SALE
TX § 152.047Title 2. STATE TAXATION · Part E. SALES, EXCISE, AND USE TAXES · Ch. 152. TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES · Art. C. COLLECTION OF TAXES
Statute text
View on source(a)Except as inconsistent with this chapter and rules adopted under this chapter, the seller of a motor vehicle shall report and pay the tax imposed on a seller-financed sale to the comptroller on the seller's receipts from seller-financed sales in the same manner as the sales tax is reported and paid by a retailer under Sections 151.401, 151.402, 151.405, 151.406, 151.409, 151.423, 151.424, and 151.425.
(b)If a note, mortgage, account receivable, or other document evidencing the purchaser's indebtedness to the seller of a vehicle sold subject to a seller-financed sale does not bear interest, it will be conclusively presumed that the total consideration for the sale is principal.
(c)If a note, mortgage, account receivable, or other document evidencing the purchaser's indebtedness to the seller of a vehicle sold subject to a seller-financed sale bears interest, it is conclusively presumed that interest accrues and is paid by the purchaser on a straight line basis.
(d)The seller shall add the tax imposed on a seller-financed sale to the sales price of the vehicle sold, and when added, the tax is:
(1)a part of the sales price;
(2)a debt owed to the seller by the purchaser; and
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Legislative history
Acts 2007, 80th Leg., R.S., Ch. 191 (S.B. 1617), Sec. 1, eff. July 1, 2007. Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 14.05, eff. October 1, 2011.