A salvage vehicle also includes a unit that has a similar ownership document issued from another state.
Purchases of unrepaired salvage vehicles are subject to Texas sales and use tax. The seller will collect and remit the sales tax directly to the Comptroller’s office. The county tax assessor-collector (CTAC) has no responsibility to ensure sales tax was paid. See Publication 98-776, Salvage Vehicles: What Tax is Due (PDF) ? for more information.
When transferring the title of an unrepaired salvage vehicle from salvage title to salvage title, the following conditions apply:
When transferring the title of a repaired salvage vehicle from a salvage title to a motor vehicle title with a rebuilt remark, the following conditions apply:
When transferring the title of a repaired salvage vehicle from a salvage title to a motor vehicle title with a rebuilt remark, the following conditions apply:
When transferring the title of a repaired salvage vehicle from a salvage title to a motor vehicle title with a rebuilt remark, the following conditions apply:
Knowing what the vehicle was (for example, a motor vehicle or tangible personal property) at the time of the transaction (sale or purchase) determines if sales and use tax or motor vehicle tax is due. When dealing with salvage vehicles, taxability and title administration do not always coincide with the title displayed in RTS. For tax purposes, a salvage vehicle includes both an unrepaired salvage titled vehicle and a vehicle declared a total loss by an insurance company.