VEHICLE, BOAT, AND MANUFACTURED HOME DEALERS INVENTORIES

Changes to the Texas Property Tax Code affecting the taxation of certain types of vehicles, vessels and outboard motors, manufactured housing and heavy equipment inventories held for sale or for resale are now in effect. This outlines certain responsibilities you will have if the law applies to you.

In summary, the law applies (with certain exceptions) to: (1) inventories of automobiles, trucks, motorcycles, recreational vehicles, or travel trailers held by a person who holds a General Distinguishing Number issued by the Texas Department of Transportation; and (2) inventories of certain vessels, boat trailers and outboard motors held by a person who holds a Dealer’s and Manufacturer Number issued by the Texas Parks and Wildlife Department; (3) Inventories held by dealers of manufactured homes; (4) Inventories held by dealers of heavy equipment.

The law provides generally that the market value of such an inventory on January 1 is the average of monthly sales for the preceding year. You are required to file an annual declaration of your prior year sales with the appraisal district before February 1. Additionally, by the 10th day of each month during the year, you must file monthly statements with the appraisal district and submit the statement and monthly tax prepayments to the county assessor and collector of taxes. Substantial civil and criminal penalties are provided in the law for failure to file the required declarations and statements timely.

Both the annual declarations and monthly reports must be filed on forms prescribed by the State Comptroller of Public Accounts.. Copies are available at no charge from the Montgomery Central Appraisal District’s Personal Property Department.

For additional information, please contact MCAD’s Personal Property Department at (936)-756-3354 or the Montgomery County Tax Assessor and Collector’s Office at (936)-539-7897.