Texas - Vehicle tax question?

Question

I have heard numerous times that in TX, you can no longer tell them the price you payed for the car or use a bill of sale to indicate the tax price. That they rather go by the blue book value to figure the taxes.

A guy had recently said that he was also told this, went in to the DMV with a bill of sale and was taxed for the BOS price.

Answer 1

If you bought your car from a TX registered car dealer, they'll use the BOS price.

If you bought from an out-of-state dealer or a private party, they'll charge sales tax based upon the higher of the book value or the BOS price.

Actually, it's not the Blue Book value but what TX calls the "Standard Presumptive Value". It is based upon book value, adjusted for mileage. However, if your BOS lists a higher price than the SPV, you will pay tax based upon the BOS price.

Here's a link that explains it, along with a handy estimator: http://www.dot.state.tx.us/services/vehicle_titles_and_registration/std_presumptive_value.htm