taxes

Motor Vehicle Tax Guide

Manufacturers of Motor Vehicles

Motor vehicle tax is due when a motor vehicle is sold by a franchised dealer to a manufacturer, except when the vehicle is held for resale or operated with a manufacturer’s license plate.

Tax Due on Related Company Purchase

Motor vehicle tax is due if a motor vehicle is titled and registered in the name of a company related to a manufacturer. For example, motor vehicle tax is due if the motor vehicle is titled and registered in the name of the manufacturer’s related financial arm. Motor vehicle tax is also due if the motor vehicle is titled to a U.S. distributor of a foreign-built vehicle (i.e., the vehicle is not purchased for resale).

Renting or Leasing

All agreements by a manufacturer to give exclusive use of a motor vehicle to another for consideration are rentals (PDF) and the manufacturer must have a rental permit number to register these motor vehicles tax free. This includes long-term contracts that would otherwise qualify as a lease agreement.

A manufacturer must collect gross rental receipts tax and report it to the Comptroller’s office.

96-254
(09/2021)