Texas Vehicle Bill of Sale

Introduction

Key Things to Know

1. 1

   There is no official Texas bill of sale form for a standard private-party vehicle sale. The TxDMV publishes only specialty forms, the Bill of Sale for a Junk Motor Vehicle (Form VTR-203) and the Component Part(s) Bill of Sale (Form VTR-63).

2. 2

   A Texas vehicle bill of sale does not need to be notarized. TxDMV has no requirement that a private-party vehicle bill of sale or the title assignment be notarized; the signed title assignment and Form 130-U effect the transfer.

3. 3

   The seller must disclose the odometer reading at transfer. Texas Transportation Code Sec. 501.072 requires the odometer disclosure in compliance with 49 U.S.C. 32705, except for vehicles exempt under federal rules, and it is captured on the title or Form 130-U. Confirm current exempt-vehicle rules with TxDMV.

4. 4

   Texas computes used-vehicle sales tax of 6.25 percent on the greater of the actual sales price or 80 percent of the vehicle's Standard Presumptive Value (SPV). If your price is under that 80%-of-SPV figure, the county taxes the SPV-based amount, so a low bill-of-sale price cannot reduce the tax below the floor.

5. 5

   You title the vehicle with your county tax assessor-collector within 30 days from the date of sale. Titling and registration run through the TxDMV system at the county office.

6. 6

   A bill of sale is optional in Texas, not a titling prerequisite. The signed title assignment plus Form 130-U transfer the vehicle; a bill of sale is recommended supplementary documentation.

7. 7

   The standout Texas rule is the SPV floor. Because the 6.25 percent tax is figured on the greater of price or 80 percent of Standard Presumptive Value under Tax Code Sec. 152.0412, understating the price on the bill of sale will not lower what you owe at the county window.

Texas Requirements for Bill of Sale

• No Official Texas Form, Form 130-U Titles the Vehicle

  Texas does not publish an official general or private-party vehicle bill of sale form. The TxDMV publishes only the Bill of Sale for a Junk Motor Vehicle (Form VTR-203) and the Component Part(s) Bill of Sale (Form VTR-63). A standard used vehicle is titled with the Application for Texas Title and/or Registration (Form 130-U) plus the signed title assignment.

• No Notarization Required

  A Texas private-party vehicle bill of sale does not need to be notarized, and TxDMV does not require the title assignment to be notarized. The transfer is effected through the signed title assignment and Form 130-U, so signatures of the buyer and seller are sufficient.

• Vehicle Description and VIN

  Identify the vehicle by VIN, year, make, model, body style, and color, and identify the seller and buyer by name and address, with the sale price and the date of sale.

• Odometer Disclosure at Transfer

  Texas Transportation Code Sec. 501.072 requires the seller to disclose the odometer reading at transfer in compliance with 49 U.S.C. 32705, except for vehicles exempt under federal rules. The disclosure is captured on the title or Form 130-U. Confirm current exempt-vehicle rules with TxDMV.

• Sales Tax on the Greater of Price or 80% of SPV

  The motor vehicle sales tax rate is 6.25 percent. Under Texas Tax Code Sec. 152.0412, when the price paid is less than 80 percent of the vehicle's Standard Presumptive Value (SPV), the county tax assessor-collector computes the tax on 80 percent of SPV. A low stated price on the bill of sale cannot reduce the tax below that floor.

• Standard Presumptive Value Floor

  The SPV floor means tax is calculated on the greater of the actual sales price or 80 percent of the SPV shown for the day of the transaction. Buyers should expect the county to apply the SPV-based amount when the stated price is low, so the bill-of-sale price alone does not control the tax.

• Title With the County Tax Assessor-Collector

  Title and register the vehicle at the county tax assessor-collector's office, which runs through the TxDMV system. Bring the signed title assignment and the completed Application for Texas Title and/or Registration (Form 130-U).

• 30-Day Titling Deadline

  The vehicle must be titled in the buyer's name within 30 days from the date of sale. Keep the bill of sale with the title assignment and Form 130-U as supporting documentation when you title at the county office.