Dealer s Special Inventory

Transcription

1 Dealer s Special Inventory Instructions for Filing Forms & Paying Property Taxes COMAL APPRAISAL DISTRICT

2 Special Inventory Appraisal For property tax purposes, Texas law requires that a dealer s inventory is appraised based on the total sales of motor vehicles, trailers, RVs, boats, heavy equipment, and/or manufactured housing in the prior year. This does not include: Vehicles that are not self-propelled and cannot transport persons or property on a public highway. Wholesale Dealers Dealers who have timely filed the Dealer s Motor Vehicle Inventory Election for Rendition form.

3 Dealer s Inventory Tax Statement Each month, a dealer must file an inventory tax statement regardless of whether or not the dealer sold any vehicles or owes vehicle inventory tax. Statements are due EVERY MONTH by the 10 th of each month for the prior month. You must complete a Dealer s Inventory Tax Statement for each business location. Make sure you file a statement EVERY MONTH even if you don t have sales to report!

4 Dealer s Inventory Tax Statement The ORIGINAL Dealer s Inventory Tax Statement and payment must be sent to the Comal County Tax Office: Comal County Tax Office 205 N. Seguin Ave. New Braunfels, TX Send a copy of the Dealer s Inventory Tax Statement to the Comal Appraisal District: Comal Appraisal District 900 S. Seguin Ave. New Braunfels, TX Make sure you file 12 statements per year to each office!

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6 Account number issued by the Comal Appraisal District. GDN issued by the Texas Department of Motor Vehicles Contact the tax office for your unit property tax factor. Date your dealer s GDN was issued. The Sales Price is the total amount paid for the purchase of a motor vehicle. Same as the Sales Price on the Application for Texas Certificate of Title.

7 Types of Sales MV = Motor Vehicle A fully self-propelled vehicle with at least two wheels which has the primary purpose of transporting people or property & includes a towable RV FL = Fleet Transactions Motor Vehicles included in the sale of five or more motor vehicles to the same person within one calendar year o No Unit Property Tax o Submit an Amended Statement if the fifth sale happens in a later month

8 Types of Sales DL = Dealer Sales Sale of a vehicle to another dealer o No Unit Property Tax SS = Subsequent Sales A dealer-financed sale of a vehicle that, at the time of sale, has dealer financing from your motor vehicle inventory in the same calendar year o No Unit Property Tax

9 Unit Property Tax On or before the 10 th day of each month, Dealers are required to deposit with the tax office the total unit property tax assigned to all motor vehicles (that qualify) sold in the prior month. The money is deposited in the owner s escrow account for prepayment of property taxes. Dealer s may not withdraw funds from the escrow account. Contact the tax office for the unit property tax factor. How Does the Tax Office Calculate the Unit Property Tax Factor? The unit property tax factor is calculated by dividing the aggregate tax rate by 12. Example: Aggregate tax rate = / 12 =.1816% = Unit Property Tax Factor =

10 How to Calculate the Unit Property Tax Amount The unit property tax of each motor vehicle is determined by multiplying the sales price of the motor vehicle by the unit property tax factor. DO NOT assign a unit property tax to: Vehicles sold to a dealer Vehicles included in a fleet transaction Vehicles that are the subject of a subsequent sale DO NOT assign a unit property tax if you were not in business on January 1 st of the current calendar year. Example of How to Calculate the Unit Property Tax Amount: Sales Price: $25,000 Unit Property Tax Factor: Unit Property Tax Amount = $25,000 x = $45.40

11 Enter the total number for motor vehicles that are sold in the prior month for each category. Enter the total sales amount for the prior month for each category. * Consigned Motor Vehicles should be calculated as a Motor Vehicle (MV) sale.

12 Dealer Inventory Tax Statement PENALTIES If you do not turn in your monthly statement: You commit a misdemeanor offense punishable by a fine up to $100 per day until you turn in your statement. In addition, you must forfeit a penalty of $500 for each month or part of a month that it is not filed. If you do not remit the Unit Property Tax Amount: You will pay 5% late penalty with another 5% due if not paid within 10 days. You must turn in your statement and payment on or before the 10 th day of each month!!

13 Dealer s Inventory Declaration Form Due EVERY YEAR on or before February 1 st If you are a new dealer: File a Declaration Form within 30 days of the date of the issuance of the dealer s GDN.

14 Step 4: Number of Units Sold & Sale Totals Calculate and notate the TOTAL number of motor vehicles sold in the previous 12 month period for each category of sales. Calculate and notate the sum of the total sales amount (sale price) for the previous 12 month period for each category of sales.

15 Step 5: Market Value of Motor Vehicle Inventory Step 1: Enter the total sales amount from your Motor Vehicle Inventory Step 2 : Divide the total sales amount by 12 to calculate the Market Value for the current tax year. If you were not in business the entire 12-month period, the chief appraiser will determine the inventory s market value

16 Dealer Inventory Tax Declaration PENALTIES If you do not turn in your yearly declaration: You commit a misdemeanor offense punishable by a fine of up to $500 per day until filed. In addition, you must forfeit a penalty of $1,000 for each month or portion of a month that it is not filed. A tax lien can be attached to the dealer s business personal property to secure payment of the penalty. You will be reported to the Texas Department of Motor Vehicles and the department will initiate termination proceedings of your GDN. Declarations are due every year by February 1 st!! If you are 1 day late you will owe $1,500. If you are 5 days late you will owe $3,500.

17 Attention Small Dealers If you do not sell 5 or more vehicles during the full prior year, the chief appraiser will report this fact to the Texas Department of Motor Vehicles. This report is prima facie grounds for the cancellation of the dealer s GDN or for refusal by the Texas Department of Motor Vehicles to renew your GDN. Your special inventory account with the Tax Office and Appraisal District will be deactivated and your inventory will be appraised on your Business Personal Property account as of January 1 st.

18 Just Remember Statements are due by the 10 th of each month. Declarations are due every year by February 1 st. If you have any questions please feel free to contact me! Comal Appraisal District Tel. (830) S. Seguin Ave. New Braunfels, TX cadbpp@co.comal.tx.us This slide presentation available at our website: