Texas – Taxability of Motor Vehicles Gifted in a Trust

SALT Report 2677 – The Texas Legislature passed a Bill that amends Chapter 152 of the Tax Code to expand the application of tax imposed on the recipient of a gifted motor vehicle to include those who receive a gifted motor vehicle from a trust.

House Bill 2913 provides that sales tax is imposed on a recipient of a gifted motor vehicle if the person receives the motor vehicle from:

  • A trust that was revocable by a decedent or jointly revocable by a decedent and the decedent’s spouse, or
  • A trust that is revocable by the person receiving the motor vehicle or jointly revocable by the recipient and the recipient’s spouse

Additionally, sales tax will also be imposed if the person receiving the motor vehicle is a trust that is revocable by the transferor of the motor vehicle or jointly revocable by the transferor and the transferor’s spouse.

The provisions in House Bill 2913 are effective September 1, 2013.

For Further Information

Texas State Legislature – House Bill 2913, Laws 2013