Sales Tax ! ?

[WhiteBassFisher]

I had assumed Texas would tax everything, so this surprises me.

No state sales tax or motor vehicle tax is due on a purely private-party sale of a used, off-road-only vehicle (such as an ATV, UTV, or dirt bike) in Texas, as these casual transactions between individuals generally only require a title transfer fee.

[Hooked]

What?? The state of Texas passing up an opportunity steal more of our $$$$. Interesting they don't charge a fee for those 'toys' but tax boats.....similar kinda toy.

[WhiteBassFisher]

I could not agree more. Taxing the same item over and over seems more like theft.

[Unknownstrohsfan]

You mean like the dirt that your house is on , hell they tax that annually and it ain't even for sale!

[dwilliams35]

Not sure about that… am I missing something?

https://comptroller.texas.gov/taxes/publications/98-805.php

Private-Party Sales


In a private-party sale, in which no party is a dealer, the buyer must remit the motor vehicle tax to the CTAC when the Form 130-U is presented for titling and/or registration (PDF).

Motor vehicle tax is due on the greater of the sales price paid for the motor vehicle or 80 percent of the motor vehicle’s standard presumptive value (SPV). The motor vehicle tax is due within 30 calendar days after the date of sale.

https://comptroller.texas.gov/taxes/publications/94-438.php

[Boom!]

Start an LLC in Montana and quit paying those vultures.

[Chuck Richey]

I've had mine for 3 years.

[WhiteBassFisher]

Not sure about that… am I missing something?
.....

There are contradictory statements on the net about it, but it seems not taxed:

No, casual individual-to-individual (private party) sales of used off-road ATVs are generally not subject to state motor vehicle sales tax in Texas, provided the seller is not an active commercial dealer. [1, 2]

🔎 Key Rules & Requirements

• 📋 Occasional Sales: Casual sales by non-dealers count as occasional sales exempt from standard retail collection. [1]

• 🏷️ Titling Fees: Texas requires an application for a title transfer through your County Tax Office, which typically involves a standard title application or transfer fee (around $30) rather than a percentage-based sales tax. [1, 2]

• ⚠️ Exemptions vs. Usage: If the vehicle is used strictly for commercial agricultural or timber production, it qualifies for a complete tax exemption. [1]

• 🛑 Exceptions: If you purchase an ATV from an out-of-state seller or a licensed retailer, distinct use or sales tax rules apply. [1]

Another Copy and paste:

No, you generally do not owe state sales tax when you buy a used off-road ATV from a private individual in Texas. [1]

Tax Rules for Private ATV Sales

• Occasional/Casual Sales: Under Texas law, private-party sales of used tangible personal property (like an off-highway vehicle or ATV previously purchased at retail) by a non-dealer individual qualify as occasional sales and are exempt from limited sales and use tax. [1, 2]

• Dealer vs. Private Party: The seller is only responsible for collecting sales tax if they are a licensed retailer or dealer. [1, 2]

• Titling Fees: While sales tax does not apply to a used private-party transaction, you are still required by the Texas Department of Motor Vehicles (TxDMV) to transfer the title into your name, which involves a standard title transfer fee. [1, 2]

(Note: If a local county tax office clerk mistakenly asks for sales tax on a private off-road vehicle purchase, you can clarify that it was an occasional/private sale of an off-highway vehicle from an individual.) [1]

[WhiteBassFisher]

In Texas, no sales tax is due on a used off-road ATV sold directly from one individual to another. Because all-terrain vehicles (ATVs) are classified as off-highway vehicles (OHVs), they are governed by general Sales and Use Tax laws (Chapter 151) rather than Motor Vehicle Tax laws (Chapter 152). This distinction allows person-to-person sales to qualify for the Occasional Sale Exemption. [1, 2, 3, 4]

Key Tax & Titling Rules for Private ATV Sales

• Occasional Sale Exemption: An individual-to-individual transaction is tax-exempt as long as the seller is not in the regular business of selling vehicles and has not made more than two retail sales of taxable items within a 12-month period. [1, 2]
• No Standard Presumptive Value (SPV): Unlike used cars or trucks sold privately, ATVs are completely exempt from SPV rules. The state will not look up a "book value" to calculate taxes. [1, 2]
• Title Transfer Requirements: While no sales tax is collected, the Texas Department of Motor Vehicles (TxDMV) still requires you to officially transfer the title. The buyer must submit Form 130-U (Application for Texas Title) to their County Tax Assessor-Collector (CTAC) within 30 days of the sale. [1, 2, 3]
• Required Fees: You will only be responsible for the standard title transfer fee (typically $28.00 to $33.00 depending on your county). [1, 2]
• The Out-of-State Exception: If you are a Texas resident purchasing a used ATV from an individual located outside of Texas and bringing it into the state, this exemption may not apply, and a 6.25% Texas Use Tax could be due to get the title. [1, 2]

[Wado II]

Get a load of this crap. When I got out of the shrimping business this BS was not in affect. A year later TPWD put this in and all the titles that had been transferred and recorded were subject to this tax. I sold my boat and both licenses to an individual and he was summoned along with a bunch of other people that had bought boats prior to this to come in and pay the sales tax. Their licenses were frozen until the sales tax was paid you could not renew them, period. I sold my boat as a package deal with two licenses, all fishing gear, electronics and of course the hull and engine. I signed an affidavit as to the value of the boat at 100 dollars. Basically, I gave it to him. They still taxed him around 300 dollars and I paid capital gains on the amount I reported. Taxes on top of taxes.



Like

Dislike Sales Tax on Commercial Shrimp Boats in Texas


In Texas, commercial shrimp boats are generally subject to the same boat and boat motor sales and use tax rules as other motorboats, provided they meet the size and type criteria.

Taxable boats
The Texas Comptroller’s boat and boat motor sales and use tax applies to the retail sale of any boat 115 feet or shorter in length, measured from bow to stern, including sailboats, inboards, outboards, and personal watercraft Texas Comptroller of Public Accounts+1. Commercial shrimp boats that are 115 ft or less are taxable. Boats over 115 ft are not subject to this tax.

Tax rate and cap

• Rate: 6.25% of the taxable value Texas Comptroller of Public Accounts+1.
• Cap: No matter how expensive the boat, the total boat sales tax due is capped at $18,750 per sale Texas Comptroller of Public Accounts+1.
• The taxable value is the purchase price minus any trade-in value, plus accessories, transportation costs, and certain excise taxes Texas Comptroller of Public Accounts.

Who collects the tax

• If purchased from a dealer, the tax is collected at sale and remitted to the Texas Parks and Wildlife Department (TPWD) or the County Tax Assessor-Collector Texas Comptroller of Public Accounts.
• If buying from a private seller or bringing a boat into Texas, you pay the tax when titling and registering the boat using Form PWD 143 www.boatregistrationusa.org.

Use tax for out-of-state purchases
If you buy a boat in another state and bring it into Texas, you owe 6.25% use tax within 45 working days of bringing it in Texas Comptroller of Public Accounts+1. A new Texas resident can pay a $15 use tax instead of the 6.25% rate Texas Comptroller of Public Accounts+1.

Trailer tax
The boat trailer is taxed separately under motor vehicle sales and use tax, which may include local taxes www.boatregistrationusa.org.

Example
A $500,000 commercial shrimp boat with no trade-in would owe:

• 6.25% × $500,000 = $31,250 (but capped at $18,750) vehicletaxcalculator.com.
  If the boat also comes with two $9,000 outboard motors, each is taxed at 6.25% (total $1,125) Texas Comptroller of Public Accounts.
  Total tax: $18,750 + $1,125 = $19,875.

Key points for commercial shrimp boat buyers

• Confirm the boat’s length is ≤115 ft to ensure it’s taxable.
• Factor in the $18,750 cap for high-value boats.
• If buying from a dealer, ensure they collect and remit the tax.
• If buying from a private seller, pay the tax at title/registration.
• Out-of-state purchases require use tax or the $15 new resident rate.

For official details, see the Texas Comptroller’s Boat and Boat Motor Tax page





Like

Dislike
The Texas Comptroller’s Office records show that the new sales tax on boats and boat motors — which would include commercial shrimp boats — was created by the Legislature in 1991. The first official notice of this change was issued on September 26, 1991, when the Comptroller explained that the Legislature had added a new section to the Texas Tax Code to tax the sale of certain boats and motors, similar to the motor vehicle tax statute STAR.

Under the 1991 law, the tax applied to boats purchased in Texas or brought into Texas by Texas residents, with a 6.25% sales or use tax rate. The tax was collected at the time of registration or titling by the Texas Department of Parks and Wildlife or the county tax assessor-collector STAR. This provision covers most boats and outboard motors, including those used in commercial fishing operations.

Summary:

• Year enacted: 1991
• First official notice: September 26, 1991
• Tax rate: 6.25% sales/use tax on taxable boats and motors STAR

If you need the exact statutory language or the full audit procedures for vessels, the Texas Comptroller’s “Audit Procedures for Vessels” document provides detailed guidance Texas Comptroller of Public Accounts.

[WhiteBassFisher]

Truth stranger than fiction.

[Wado II]

Years ago when we had our bait camp and boat launch we had a sales tax permit for tackle and a few supplies we sold. I don't think ice was taxable it is considered food or at least I think so. We had an ice cream freezer and a coke machine and for a while the Frito guy put a rack in our little store. He said he couldn't drive down dirt roads to deliver and took it out and so did the ice cream dude. We just bought it at the grocery store and bought an old ice cream type freezer to put it in marked it up a few cents. Heck, we lost money on that stuff every time I walked by it I got a Nestles Crunch Bar. I don't recall what year it was but we got a letter from the comptroller and had to collect sales tax for bait. That threw my mother into a frenzy we had everything priced even money like a 12 ounce box of frozen was 2.00 and 2.00 a pound for fresh dead and believe it or not 4.00 a pint for live shrimp and 8.00 a quart. We just put up a sign that said all prices on bait include tax and we paid it. The mistake these lawmakers made was they put the tax on deer corn also that blew over like a lead balloon. It was removed shortly after it was put in place. They might have it back now for all I know a quart of live shrimp is how much now? Twenty bucks?

[Retired]

When we recently moved back to Texas from the Armpit state of Ohio, we had to pay a $90 use tax on each of two vehicles to complete the registration process, in addition to the usual license and registration fees. My truck was exempt because it was purchased here just before we moved 12 years ago. We spent over $500 to transfer 3 vehicles, not including the emissions tests. I also agree with other posters about paying sales tax each time a vehicle or boat changes hands, it just seems unfair. And, don’t get me started on real estate taxes that have to be paid for your entire life, even after the property is paid off. That is just another version of a wealth tax, even though the value is not realized to the owner.

[Phantom Fisherman]

I think I would rather have a higher sales tax rather than having to pay property taxes every year on house and land that has been paid off for years. Something just wrong about property taxes.

[wfishtx]

Agree 1000% with you on this. I'd pay a 20% sales tax if I didn't have to pay property taxes. At least with sales tax, I can choose to buy it or choose to do without or choose to buy something cheaper. At least I get to have say in how much I'm willing to spend on sales tax instead of some "appraiser" paid by the county getting to decide how much the county should make in property taxes to make sure he/she keeps their job.