Rep. Dean files bill to reduce used car tax burden
LONGVIEW, Texas (KLTV) - Representative Jay Dean has filed a bill to reduce the tax burden when buying a used car.
According to a press release, before 2006, private party used cars were not subject to sales tax in Texas. In 2006, the state began requiring used car buyers to pay tax on 80% of the car’s “Standard Presumptive Value.” HB 747 would reduce that burden to 50%.
Rep. Dean said, “In the last two years the price of used cars -- the price of everything -- has just skyrocketed. Lowering the SPV percentage will ease the tax burden on hard-working Texans trying to get by and make ends meet right now.” Rep. Dean added, “It’s important to remember sales tax was fully paid on that car when it was sold new.”
The state does not charge sales tax on most purchases of used goods, except for used cars.
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