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Are You Charging Too Much for Registration Fees?

Harris County, Dallas County and Travis County have opted out of the Low-Income Vehicle Repair Assistance, Retrofit and Accelerated Vehicle Retirement Program, or LIRAP. The TECQ chose to implement the fee based on date of registration expiration, not by calendar date. As such, auto dealers may be inadvertently collecting a higher inspection fee from customers than what is required.

Harris County

In mid-April, Harris County Commissioners opted out of LIRAP.
 
From now through July 1st, vehicles that were last registered in Harris County with a July or August 2018 registration expiration (that previously received an OBD inspection) will now be subject to the collection of an OBDNL fee at the time of titling and registering at the tax office.
 
This impacts Harris County used vehicles with July or August 2018 expirations, and not new vehicles or vehicles registered outside of Harris County.
 
Beginning July 2nd, all used vehicles will receive an OBDNL inspection.
 
The state's portion of the inspection fee collected at the county tax office may be less than the fee you collected from your customer (OBD fee $14.25, OBDNL fee $8.25= $6.00 savings). Fees on sales invoices and contracts may differ, and refunds may be incurred.
 
Dallas County

Dallas County has opted not to collect the $6.00 LIRAP fee, which was previously part of the state's portion of the inspection fee. This fee was removed from all registration fees for vehicles scheduled to expire beginning December 2017.
 
The system has been programmed to not charge this $6.00 fee for any vehicle with a December 2017 expiration or later. It will charge $8.25 for an OBD inspection fee if the vehicle meets the following conditions:
  • It is a used vehicle with a Texas record.
  • The existing registration in the system is set to expire December 2017 or later.
When calculating the fees due for each transaction, you will need to verify if the vehicle currently has Texas registration and, if so, when it expires, so the correct fee is remitted.
 
Travis County

Travis County opted not to collect the $6.00 LIRAP fee. This was effective beginning with the December 2017 renewals.
 
Key Takeaway for Dealers

Make sure that you're collecting the correct fee amount to register vehicles in whatever county you're in. In addition to the counties above, Williamson, Collin, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, Brazoria, Fort Bend, Galveston, and Montgomery counties also collected the LIRAP fee at one time or another.

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