Motor vehicle taxes (Austin: sales, 2015, buying)

[suzy_q2010]

My son has just received a job offer in Austin. His wife is considering buying a new car. They currently live in Georgia, where a one time 7% fee is assessed at the time of purchase, replacing the sales tax and previous yearly ad valorem tax. That is considered a fee and is not deductible on federal taxes.

It appears that Texas charges 6.5% sales tax on a new vehicle, and there is a $90 fee for new residents when they register the car they bring from out of state. I cannot find anything about an annual property tax on cars.

The decision to be made is whether to sell the old car in Georgia and buy the new one in Austin, thereby not having to get the old car to Texas (gas and increased mileage on the vehicle) or buy in Georgia and drive the new car to Texas.

It appears to me that buying in Texas makes the most sense.

Any opinions?

[Trainwreck20]

If you trade the old car in when buying a new car in Texas, the trade in value is reduced from the sales price when calculating sales tax, fwiw.

[metroxian]

I cannot find anything about an annual property tax on cars.

Texas has an annual inspection/registration fee on autos. A notice is mailed to the known address.

https://rts.texasonline.state.tx.us/...RenewalServlet

http://www.txdmv.gov/motorists/regis...ps-one-sticker

[suzy_q2010]

Originally Posted by Trainwreck20

If you trade the old car in when buying a new car in Texas, the trade in value is reduced from the sales price when calculating sales tax, fwiw.

Good to know. I do not know what the value of her car is. I think she could probably get a better price with a private sale, though. It's in good condition and clean (non-smoker).

Originally Posted by metroxian

Texas has an annual inspection/registration fee on autos. A notice is mailed to the known address.

https://rts.texasonline.state.tx.us/...RenewalServlet

TxDMV.GOV - Two Steps, One Sticker

I saw that. Figured it would apply no matter where the car was bought. The annual fee is a bit higher than Georgia, which is $20 for cars and light trucks. Georgia does not require a safety inspection, either, though some counties do emissions testing.

[metroxian]

Originally Posted by suzy_q2010

Good to know. I do not know what the value of her car is. I think she could probably get a better price with a private sale, though. It's in good condition and clean (non-smoker).



I saw that. Figured it would apply no matter where the car was bought. The annual fee is a bit higher than Georgia, which is $20 for cars and light trucks. Georgia does not require a safety inspection, either, though some counties do emissions testing.

In Texas that annual fee will be somewhere around $60 to $80 annually. The registration fee will include the state inspection fee, which must be done before the annual registration fee is paid. That is, the state will send the owner a new registration sticker after the inspection and payment. The inspector will enter the results into a state database to verify a passed inspection. The owner will also pay the inspector his fee for services. That fee will depend on the county of residence, being that metro counties also have emissions testing. Non-metro counties don't do emissions testing so the fee is $7.50 (or, mine was).

2015 is the first year of combined inspection/registration sticker and fees. We used to have two stickers, now one. Hence, the Texas Two Step.

[losttechnician]

Originally Posted by suzy_q2010

...
It appears that Texas charges 6.5% sales tax on a new vehicle, and there is a $90 fee for new residents when they register the car they bring from out of state. I cannot find anything about an annual property tax on cars.
...

So, there are only a handful of counties in Texas that have annual property tax on vehicles. To be real sure, check the website of the county you will likely end up living in.