Texas Transportation Code 503.038 – Cancellation of General Distinguishing Number
Text of subsection effective until July 01, 2025
(a) The department may cancel a dealer’s general distinguishing number if the dealer:
(1) falsifies or forges a title document, including an affidavit making application for a certified copy of a title;
(2) files a false or forged tax document, including a sales tax affidavit;
(3) fails to take assignment of any basic evidence of ownership, including a certificate of title or manufacturer’s certificate, for a vehicle the dealer acquires;
(4) fails to assign any basic evidence of ownership, including a certificate of title or manufacturer’s certificate, for a vehicle the dealer sells;
(5) uses or permits the use of a metal dealer’s license plate or a dealer’s temporary tag on a vehicle that the dealer does not own or control or that is not in stock and offered for sale;
(6) makes a material misrepresentation in an application or other information filed with the department;
(7) fails to maintain the qualifications for a general distinguishing number;
(8) fails to provide to the department within 30 days after the date of demand by the department satisfactory and reasonable evidence that the person is regularly and actively engaged in business as a wholesale or retail dealer;
(9) has been licensed for at least 12 months and has not assigned at least five vehicles during the previous 12-month period;
(10) has failed to demonstrate compliance with Sections 23.12, 23.121, and 23.122, Tax Code;
(11) uses or allows the use of the dealer’s general distinguishing number or the location for which the general distinguishing number is issued to avoid the requirements of this chapter;
(12) misuses or allows the misuse of a temporary tag authorized under this chapter;
(13) refuses to show on a buyer’s temporary tag the date of sale or other reasonable information required by the department; or
(14) otherwise violates this chapter or a rule adopted under this chapter.
Text of subsection effective on July 01, 2025
Terms Used In Texas Transportation Code 503.038
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Affidavit: means a statement in writing of a fact or facts signed by the party making it, sworn to before an officer authorized to administer oaths, and officially certified to by the officer under his seal of office. See Texas Government Code 312.011
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- 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
- Rule: includes regulation. See Texas Government Code 311.005
(a) The department may cancel a dealer’s general distinguishing number if the dealer:
(1) falsifies or forges a title document, including an affidavit making application for a certified copy of a title;
(2) files a false or forged tax document, including a sales tax affidavit;
(3) fails to take assignment of any basic evidence of ownership, including a certificate of title or manufacturer’s certificate, for a vehicle the dealer acquires;
(4) fails to assign any basic evidence of ownership, including a certificate of title or manufacturer’s certificate, for a vehicle the dealer sells;
(5) uses or permits the use of a dealer’s license plate on a vehicle that the dealer does not own or control or that is not in stock and offered for sale;
(6) makes a material misrepresentation in an application or other information filed with the department;
(7) fails to maintain the qualifications for a general distinguishing number;
(8) fails to provide to the department within 30 days after the date of demand by the department satisfactory and reasonable evidence that the person is regularly and actively engaged in business as a wholesale or retail dealer;
(9) has been licensed for at least 12 months and has not assigned at least five vehicles during the previous 12-month period;
(10) has failed to demonstrate compliance with Sections 23.12, 23.121, and 23.122, Tax Code;
(11) uses or allows the use of the dealer’s general distinguishing number or the location for which the general distinguishing number is issued to avoid the requirements of this chapter; or
(12) otherwise violates this chapter or a rule adopted under this chapter.
(b) The department shall cancel a dealer’s general distinguishing number if the dealer obtains the number by submitting false or misleading information.
Text of subsection effective until July 01, 2025
(c) A person whose general distinguishing number is canceled under this chapter shall surrender to a representative of the department each license, license plate, temporary tag, sticker, and receipt issued under this chapter not later than the 10th day after the date the general distinguishing number is canceled. The department shall direct any peace officer to secure and return to the department any plate, tag, sticker, or receipt of a person who does not comply with this subsection.
Text of subsection effective on July 01, 2025
(c) A person whose general distinguishing number is canceled under this chapter shall surrender to a representative of the department each license, license plate, sticker, and receipt issued under this chapter not later than the 10th day after the date the general distinguishing number is canceled. The department shall direct any peace officer or designated department employee to secure and return to the department any plate, sticker, or receipt of a person who does not comply with this subsection.
(d) A person whose general distinguishing number is canceled automatically loses any benefits and privileges afforded under Chapter 501 to the person as a dealer.