[Aerovette]

Originally Posted by bill_daniels

Maybe I'm reading this wrong, but I think that's incorrect. Texas calculates SPV, standard presumptive value, which is a number they pull out of their ass when you give them the VIN and the mileage. They have ZERO idea of condition, damage, mechanical issues, etc. They just spit out a number based on VIN and mileage.

Now, say their value is $ 100. The minimum tax you'll pay is on 80% of that, so let's say you buy the vehicle for $ 10, because it was wrecked. You'll still pay tax on $ 80 valuation.

If you pay MORE than $ 100, you'll pay tax on the actual sales price. If you pay less, you'll pay less tax, but never less than the tax on 80% of the SPV.


The only exceptions to this are, if you're buying from a Texas licensed dealer, you'll pay tax on the sales price, no SPV calculations necessary. OR, you can get a formal, written appraisal of the car from a licensed Texas appraiser or insurance adjuster, and claim that as proof of the actual value of the car. Of course, you'll spend money hiring someone to write that evaluation for you, so you still pay.

https://www.txdmv.gov/standard-presumptive-calculator

I think you said what I said.

SPV - $24,700.00
Sales price - $23,000.00

Tax will be 6.25% of $24,700.00

Correct?