No taxes on new build?

[elmariachi]

Originally Posted by Ronbo

Typically you just bring all this stuff (receipts) to the DMV and pay what taxes are due on the major components (engine, trans, body and frame). Unless your building it for resale (like GM, Ford, ect.), the taxes are due. No point fooling around with the tax people, the penalties are murder. (typically double the original tax + 1~1.5% per mo.)

Not correct.

1. If you buy parts from an entity who holds a Texas sales and use tax certificate (like a business) then you will pay 8.25% sales tax on any parts and components you purchase in the state of Texas for your build. You are not taxed again on these parts when you register the finished car.

2. If you buy goods for your build from out of state, Texas has a sales/use tax requirement that says you are obligated to pay sales tax on that as well. The local tag office will NOT attempt to collect that, you must file form 01-156, Texas Occasional Use Tax. (Would all the idiots who are filling out this form and voluntarily paying sales tax on the Rolexes you bought in Mexico please stand up?) I would like to meet one Texas resident who has EVER filled out and filed this form.

3. When you go to title and register your car, if you BUILT it, you do not have to pay sales tax on any of the parts or the car itself because you are the builder. You do NOT pay tax on the engine, frame or body. The local tag office is not even set up to collect the sales/use tax anyway, it has to be filed on the above mentioned form.

4. If you attempt to register a roller (Superformance, Backdraft, etc) you will be asked to show your MSO and your bill of sale for the roller. If you did not pay sales tax on the roller, you WILL pay 6.25% Texas vehicle sales tax on the roller at the time of registration.