Texas law provides for the special appraisal of dealers’ inventory including heavy equipment, motor vehicles, vessels and outboard motors and manufactured housing retailers. Special inventory appraisal is generally based on sales. Dealers and retailers must file inventory declaration forms with the county appraisal district each year listing the total sales, leases or rentals, as applicable, in the preceding year and an inventory tax statement with the tax office each month.
Motor Vehicle Dealer’s Special Inventory
Tax Code Section 23.121 requires that a motor vehicle dealer’s inventory is appraised based on the total sales of motor vehicles in the prior year. Dealers must file with the county appraisal district Form 50-244, Dealer’s Motor Vehicle Inventory Declaration (PDF), listing the total annual sales from the inventory in the prior year. Also, the dealer must file with the tax office the monthly Form 50-246, Dealer’s Motor Vehicle Inventory Tax Statement (PDF), listing the motor vehicles sold and prepay property taxes for each vehicle.
The Comptroller’s office publishes the Motor Vehicle Dealer’s Special Inventory Manual (PDF) to assist dealers in filing Form 50-244, Dealer’s Motor Vehicle Inventory Declaration (PDF), and Form 50-246, Dealer’s Motor Vehicle Inventory Tax Statement (PDF), and prepaying property taxes each month.
For additional information on other types of SIT visit Special Inventory (texas.gov)
