Sales Tax on Used Truck Lease Buyout in Texas

Discussion in 'Trucker Taxes and Truck Financing' started by Porkchop_McGee, Apr 8, 2021.

  1. Porkchop_McGee

    Porkchop_McGee Bobtail Member

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    I'm getting ready to buy my tractor that I've been leasing and I was wondering if there is any sales tax I have to pay? (Texas)

    It's been difficult getting anybody on the phone to talk about this. According to my local Texas Tax Assessor, there is only a $33 fee associated with transferring the title from the carrier to myself. But she said I would have to get Texas apportioned plates. Currently, the truck is licensed outside of Texas with the carrier I am leased on to. Is it possible to just transfer the title and keep the licensing the way it is?
     
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  3. p608

    p608 Road Train Member

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    Short answer is yes, as long as you have a lease you should be tax exempt.
     
  4. baha

    baha Road Train Member

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    CK to be sure your co. that you have your irp. tag with now will need the title in the state that the tag is thru. If you are staying with that co. it may save you tax every year?
     
  5. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    I bought a truck once through a company in Indiana. When I get the title, I went into the county office where you did my car registration. This was in Weatherford, Tx. They put the title in my name and I got a Texas title. My plates stayed with the company I was leased to in Indiana shown on the registration. I showed a copy of my lease agreement and there was no sales tax. So they are giving you a line of crap.
     
  6. Porkchop_McGee

    Porkchop_McGee Bobtail Member

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    I went and transferred the title today so I thought I would post an update in case anyone else is wondering about this process.

    I didn't have to pay any sales tax. There's a box on the form where you can mark "exempt" and then put "interstate commerce" as the reason. They mentioned that I would have to get Texas plates but they didn't force me to. They wanted to see my registration cab card, insurance policy, and old title. They did not require HVUT payment documentation, my owner operator agreement, or inspection.
     
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  7. Porkchop_McGee

    Porkchop_McGee Bobtail Member

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    Update:

    They rejected my title application because they said I didn't have an official Texas inspection. So I went and got an "official" state of Texas inspection for $40. Apparently they do not accept the usual DOT inspection forms.
     
    RockinChair and Team818 Thank this.
  8. TruckernFl

    TruckernFl Light Load Member

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    What company did you lease threw and succeeded?
     
  9. Team818

    Team818 Medium Load Member

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    Hi, I was wondering what company you leased on with? Can't see by the picture you have as you profile picture.
     
  10. Porkchop_McGee

    Porkchop_McGee Bobtail Member

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    Schneider
     
    bzinger and Dave_in_AZ Thank this.
  11. RockinChair

    RockinChair Road Train Member

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    As if the inspection didn't occur at an Official Vehicle Inspection Station and wasn't entered into the Vehicle Inspection Connection system. :rolleyes:
     
    BennysPennys Thanks this.
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