Fillable Form 50-246 - Dealer'S Motor Vehicle Inventory Tax Statement (Page 3 of 3) in pdf

P r o p e r t y T a x

D e a l e r ’ s M o t o r V e h i c l e I n v e n t o r y T a x S t a t e m e n t

Form 50-246

Instructions

Step 2: Information about the business. Give the address of

If you are an owner of an inventory subject to Sec. 23.121, Tax

Code, you must file this dealer’s motor vehicle inventory tax state-

the actual physical location of the business. Include your business’

ment as required by Sec. 23.122.

name and the account number from the appraisal district’s notices.

Filing deadlines: You must file this statement on or before the

Step 3: Information on each vehicle sold during the report-

ing month. Complete the information on each motor vehicle

10th day of each month regardless of whether a motor vehicle is

sold. If you were not in business for the entire year, you must file

sold, including the date of sale, model year, model make, vehicle

identification number, purchaser’s name, type of sale, sales

this statement each month after your business opens, but you

do not include any tax payment until the beginning of the next

price and unit property tax. The footnotes include:

calendar year. You are presumed to have started business on the

Type of Sale: Place one of the following codes by each sale

date you were issued a dealer’s general distinguishing number.

reported:

The chief appraiser, however, has sole discretion to designate a

MV – motor vehicle inventory – sales of motor vehicles. A

different starting date. However, if your dealership was the pur-

motor vehicle is a fully self-propelled vehicle with at least two

chaser of an existing dealership and you have a contract with the

wheels which has the primary purpose of transporting people

prior owner to pay the current year motor vehicle inventory taxes

or property and includes a towable recreational vehicle. Motor

owed, then you must notify the chief appraiser and the county tax

vehicle does not include equipment or machinery designed

assessor-collector of this contract and continue to pay the monthly

and intended for a specific work related purpose other than

tax payment. Be sure to keep a completed copy of the statement

transporting people or property. Only this type of sale has a

for your files and a blank copy of the form for each month’s filing.

unit property tax value (see below).

Filing places: You must file the original statement with your

FL – fleet sales – motor vehicles included in the sale of five

monthly tax payment with the county tax assessor-collector. You

or more motor vehicles from your inventory to the same buyer

must file a copy of the original completed statement with the

within one calendar year.

county appraisal district’s chief appraiser. Texas Department of

Transportation has authority to view this form in auditing dealer

DL – dealer sales – sales of vehicles to another Texas dealer

license compliance.

or dealer who is legally recognized in another state as a motor

vehicle dealer.

Filing penalties: Late filing incurs a penalty of 5 percent of the

amount due. If the amount is not paid within 10 days after the due

SS – subsequent sales – dealer-financed sales of motor

date, the penalty increases for an additional penalty of 5 percent of

vehicles that, at the time of sale, have dealer financing from

the amount due. Failure to file this form is a misdemeanor offense

your motor vehicle inventory in this same calendar year. The

punishable by a fine not to exceed $100. Each day that you fail to

first sale of a dealer-financed vehicle is reported as a motor

comply is a separate offense. In addition, a tax lien attaches to

vehicle inventory sale, with sale of this same vehicle later in

your business personal property to secure the penalty’s payment.

the year classified as a subsequent sale.

The district attorney, criminal district attorney, county attorney,

Sales Price: The price as set forth on the Application for Cer-

collector or a person designated by the collector shall collect the

tificate of Title, or would appear if that form was used.

penalty, with action in the county in which you maintain your prin-

cipal place of business or residence. You also will forfeit a penalty

Unit Property Tax: To compute, multiply the sales price by

of $500 for each month or part of a month in which this statement

the unit property tax factor. For fleet, dealer and subsequent

is not filed after it is due.

sales that are not included in the net motor vehicle inventory,

the unit property tax is $-0-. The unit property tax factor is the

Annual property tax bill: You will receive a separate tax bill(s) for

aggregate tax rate divided by 12 and then by $100. Calculate

your motor vehicle inventory for each taxing unit that taxes your

your aggregate tax rate by adding the property tax rates for all

property, usually in October. The county tax assessor-collector

taxing units in which the inventory is located. Use the property

also will receive a copy of the tax bill(s) and will pay each taxing

tax rates for the year preceding the year in which the vehicle

unit from your escrow account. If your escrow account is not suf-

is sold. If the county aggregate tax rate is expressed in dollars

ficient to pay the taxes owed, the county tax assessor-collector

per $100 of valuation, divide by $100 and then divide by 12.

will send you a tax receipt for the partial payment and a tax bill

Dividing the aggregate rate by 12 yields a monthly tax rate and

for the amount of the deficiency. You must send to the county

by $100 to a rate per $1 of sales price.

tax assessor-collector the balance of total tax owed. You may not

withdraw funds from your escrow account.

Total Unit Property Tax for This Month: Enter only on last

page of monthly statement.

Step 1: Property owner’s name and address. Give the corpo-

rate, sole proprietorship or partnership’s name, including mailing

Step 4: Total sales. Provide totals on last page of statement of

address and telephone number of the actual business location

the number of units and the sales amounts for vehicles sold in

required by the monthly statement (not of the owner). Give the

each category.

person’s name and title that completed the statement.

Step 5: Sign the form. Sign and enter the date if you are the

person completing this statement.

For more information, visit our website:

50-246 • 09-11/12 • Page 3

Form 50-246 - Dealer'S Motor Vehicle Inventory Tax Statement Page 3

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