500 Reasons to File SIT on Time

• By: Jeff Martin
• On: 06/18/2020 13:07:53
• In: Texas Posts
• Comments: 0

Due to the pandemic, TIADA has seen an increase in calls regarding penalties for late or missing monthly special inventory tax payments.  The state did not issue any relief for filling your SIT during the COVID-19 pandemic. Remember, monthly reports for special inventory tax payments are due EVERY month—even if a dealer is temporarily closed or doesn't sell any vehicles.
 
A quick reminder about special inventory tax a/k/a vehicle inventory tax. Texas law provides for the special appraisal of dealers' motor vehicle inventory. Special inventory appraisal is generally based on sales. Your local tax assessor-collector will provide you with the local tax rate each calendar year. Dealers must file inventory declaration forms with the county tax appraisal district each year listing the total sales, leases or rentals, as applicable, in the preceding year and an inventory tax statement with the tax office must be filed by the 10th each month.
  
Penalties and interest can add up. A dealer who does not file the monthly tax statement by the 10th day of the following month commits a misdemeanor offense punishable by a fine of up to $100 per day until filed. In addition to any other penalty provided by law, a dealer forfeits a penalty of $500 for each month or portion of 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. A dealer who fails to remit the taxes due pays a 5 percent late penalty, with another 5 percent due if not paid within 10 days.