Motor Vehicle – Gross Rental Receipts Tax

Who is responsible for this tax?

Companies that rent motor vehicles, including automobiles, motor homes, motorcycles, trucks, truck tractors, trailers, semi-trailers, travel trailers and park models, must collect motor vehicle gross rental receipts tax from their customers. The percentage of tax charged is based on the length of the rental contract.

Rates

• For contracts of 1-30 days, 10 percent of gross receipts, less discount and separately stated fees for insurance, fuel and damage assessments.
• For contracts exceeding 30 days but no longer than 180 days, 6.25 percent.

Due Date

Due dates are based on the gross rental receipts a motor vehicle rental company collects per quarter:

• more than $1,500 in gross rental receipts per quarter: file monthly
• less than $1,500 in gross rental receipts per quarter: file quarterly

Returns must be filed or postmarked on or before the 20th day of the month following the end of each reporting period (for example, April 20 for March activity).

Penalties and Interest

Penalties

• A $50 penalty is assessed on each report filed after the due date.
• If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
• If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.

Interest

• Past due taxes are charged interest beginning 61 days after the due date.
• To calculate interest on past due taxes, visit Interest Owed and Earned.

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $10,000

Select one of these reporting methods:

• Webfile
• Tax Forms

Select one of these payment methods:

• Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
• TEXNET
• Check

$10,000 - $49,999

Select one of these reporting methods:

• Webfile
• Tax Forms

Select one of these payment methods:

• Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
• TEXNET

$50,000 - $499,999

Webfile is the only acceptable reporting method.

Select one of these payment methods:

• Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
• TEXNET

$500,000 or more

Webfile is the only acceptable reporting method.

TEXNET is the only acceptable payment method.

Discounts

0.5 percent for timely filing and paying plus 1.25 percent for prepaying.

Additional Resources

• Refunds
• Motor Vehicle Taxpayer Status Search
• All Motor Vehicle Taxes