Dealer Inventory Tax Statement and Declaration

For property tax purposes, each month, all Motor Vehicle Dealers are required to file a Dealer's Monthly Inventory Tax Statement with their presiding Appraisal District and County Tax Assessor Collector. The Vehicle Inventory Tax (VIT) Statement is a listing of the motor vehicles sold during the subject month. The VIT Statement must be filed on or before the 10 day of the month imediately following the subject month. Dealers are also required to prepay their VIT (Property Tax) for each vehicle. Dealers should be advised that the VIT Statement shall be filed with both their local Appraisal District and County Tax Assessor Collector. As an example, dealers that are located in Harris County must file one form with the Harris County Appraisal District and a second (duplicate) form with the Harris County Tax Assessor Collector.

    It should also be mentioned that not all dealers will have the same tax rate as the rate is based on the rates (School District) in which the dealer's lot is located.

    Dealers must also file a Dealer's Motor Vehicle Inventory Declaration which is a listing of the total value of the inventory sold in the prior year. The Motor Vehicle Inventory Declaration should be filed between January 1 and January 31. This annual report must also be sent to the presiding Chief Appraiser (Appraisal District) and Tax Assessor Collector.

Forms Must Be File Even In Cases Where There Are No Sales

Dealers must file the VIT Statement and Annual Declaration even if they made no sales.

New Dealers must file a declaration form within 30 days of issuance of the dealer's General Distinguishing Number (GDN).

Dealers that do not file the monthly tax statement by the 10th day of the following month commits a misdemeanor punishable by a fine of up to $100.00 per day until filed. A tax lien can be attached to the dealer's business personal property to secure payment of the $100.00 penalty. A dealer forfeits an additional penalty of $500.00 for each month or portion of month that it is not filed. Furthermore, a dealer who fails to remit the taxes dues pays a 5 percent late payment, with another 5 percent due if not paid within 10 days. See below to download the required forms and Instructions for Filing Forms and Paying Property Taxes.