Texas Tax Code 152.002 – Total Consideration
(a) “Total consideration” means the amount paid or to be paid for a motor vehicle and its accessories attached on or before the sale, without deducting:
(1) the cost of the motor vehicle;
(2) the cost of material, labor or service, interest paid, loss, or any other expense;
(3) the cost of transportation of the motor vehicle before its sale; or
(4) the amount of manufacturers’ or importers’ excise tax imposed on the motor vehicle by the United States.
(b) “Total consideration” does not include:
(1) a cash discount;
(2) a full cash or credit refund to a customer of the sales price of a motor vehicle returned to the seller;
(3) the amount charged for labor or service rendered in installing, applying, remodeling, or repairing the motor vehicle sold;
(4) a financing, carrying, or service charge or interest on credit extended on a motor vehicle sold under a conditional sale or other deferred payment contract;
(5) the value of a motor vehicle taken by a seller as all or a part of the consideration for sale of another motor vehicle, including any cash payment to the buyer under § 348.404 or 353.402, Finance Code;
(6) a charge for transportation of the motor vehicle after a sale;
(7) motor vehicle inventory tax; or
(8) an amount made available to the customer under Subchapter G, Chapter 382, Health and Safety Code.
Terms Used In Texas Tax Code 152.002
- Contract: A legal written agreement that becomes binding when signed.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Market value: means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:
(A) exposed for sale in the open market with a reasonable time for the seller to find a purchaser;
(B) both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use; and
(C) both the seller and purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other. See Texas Tax Code 1.04 - Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) A person who is in the business of selling, renting, or leasing motor vehicles, who obtains the certificate of title to a motor vehicle, and who uses that motor vehicle for business or personal purposes may deduct its fair market value from the total consideration paid for a replacement vehicle if:
(1) the person obtains the certificate of title to the replacement motor vehicle;
(2) the person uses the replacement motor vehicle for business or personal purposes; and
(3) the replaced motor vehicle is offered for sale.
(d) A person who holds a vehicle lessor license under Chapter 2301, Occupations Code, or is specifically not required to obtain a lessor license under Section 2301.254(a) of that code may deduct the fair market value of a replaced motor vehicle that has been leased for longer than 180 days and is titled to another person if:
(1) either person:
(A) holds a beneficial ownership interest in the other person of at least 80 percent; or
(B) acquires all of its vehicles exclusively from franchised dealers whose franchisor shares common ownership with the other person; and
(2) the replaced motor vehicle is offered for sale.
(e) A person who is a motor vehicle owner, is in the business of renting motor vehicles, and holds a permit may deduct the fair market value of a replaced motor vehicle that is titled to another person if:
(1) either person:
(A) holds a beneficial ownership interest in the other person of at least 80 percent; or
(B) acquires all of its vehicles exclusively from franchised dealers whose franchisor shares common ownership with the other person; and
(2) the replaced motor vehicle is offered for sale.
(f) Notwithstanding Subsection (a), the total consideration of a used motor vehicle is the amount on which the tax is computed as provided by § 152.0412.