Motor Vehicle Dealer Special Inventory Frequently Asked Questions

It is an annual report of your prior year's sales and determines your market value for the current year. It also provides the dealer's current mailing address and location. The Declaration is due every year prior to February 1. New dealers with licenses issued after January 1 of the current year are required to file a Declaration with the appraisal district and assessor-collector within 30 days of the date that the dealer license was issued by the state.

The Inventory Tax Statement is a report of your prior month's sales with the calculation of the Unit Property Tax on those sales. The Statement is due by the 10th of each month for the prior month's sales. For example, the Statement for the sales made in January 2022 is due by February 10th, 2022.

Yes. You are considered in business beginning on the date the dealer number is issued and continuing until it is canceled or expires.

The law requires you to file every month that your dealer number is active even if you do not have sales or inventory. If you have not made any sales in the prior month, fill out Steps 1-2 and write "No Sales" in Step 3 and sign and date the form.

Yes. See Instructions for filing Declarations and Statements

Your factor is based on the taxing jurisdictions where your business is located on January 1. At the end of each year, the taxing jurisdictions set the tax rates. If a jurisdiction changes its tax rate your factor will change the following year beginning January 1.

The payment you send in each month is considered a prepayment of your tax bill and is held in an escrow account. Your escrow payments are based on the sales in the current year, but your tax is based on the prior year sales. If the current year sales are less than the prior year sales or if the tax rate goes up, you may owe more than the amount held in escrow.

Tax bills are issued in October however the escrow balance will not be applied to the taxes due on the account until after the December statement deadline of January 10 of the following year. If the escrow balance is less than the tax due, a supplemental tax bill will be issued for the difference. If the escrow balance meets or exceeds the tax liability a tax receipt will be issued.

Yes. You must cancel the dealer number with TXDMV. You are required to file reports until the dealer number is canceled. Taxes are not prorated so a closure after January 1 of the tax year will not affect your market value or tax liability for that tax year

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