Selling Vehicles to Out of State Buyers

What goes in the deal jacket? What goes to the state?

When a customer who lives out of state (or is moving) buys a vehicle from you, there are a few things about the transaction that work differently than if the customer lived in Texas. Process your sale just as you normally would, and keep the following things in mind.

Do:         Collect $5 for the Buyers Tag.
Don't:     Collect sales tax on the purchase.
Do:          Have the customer sign Form 14-312, Texas Motor Vehicle Sales Tax Exemption Certificate- for Vehicles Taken Out of State.
Don't:      Forget to give the customer the signed original Form 14-312 with instructions to provide Form 14-312 to their state's vehicle registration division.

Do:          Have a customer who purchases a vehicle for wholesale that will be taken out of state, fill out Form 14-313, Texas Motor Vehicle Sales Tax Resale Certificate.
Don't:      Send Form 14-313 to the Comptroller. Keep it in your deal jacket.
Do:          Give the vehicle title to the customer.
Don't:      Apply for title or registration on behalf of the customer.
Do:          Give the customer a Buyers Tag.
Don't:      Forget to make copies of EVERYTHING


On: 07/13/2017 23:52:37
Your blog tells us to send the form 14-312 to Austin but on the bottom of the form you will find this footnote. "This certificate should be furnished to, and retained by, the seller. Do not send the completed certificate to the Texas Comptroller of Public Accounts. Please advise!
By: Cathy
On: 07/14/2017 10:33:22
I am a little confused. The forms 14-312 and 14-313 state not to send them to the comptroller. However, the article states "Dont: forget to send Form 14-312 to the comptroller. Form 14-313 is for resale. This form is used between dealers for wholesale units. Form 14-313 states the purchaser will be reselling the vehicle. If an individual is purchasing a vehicle to register in their home state it wouldn't be for resale. So even though the Form 14-312 says not to send it we should send it and even though the customer is not going to be reselling the vehicle they should still sign the Form 14-313?
By: Amber Hackett Crosby
On: 07/17/2017 10:23:17
You are correct- the Form 14-312 should not be sent to the Comptroller. It should be given to the customer, who will then turn it in to their state’s vehicle registration division. Additionally, the Form 14-313 is specifically used for wholesale vehicle purchases. Please pardon the confusion. Clarification of these points has been noted in the edited version of this post.
By: Michelle Richardson
On: 10/26/2017 11:47:07
If the vehicle is being sold on a note, would we still give the customer the title?

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