Tom Hampton Agency FAQ:
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New Dealer FAQ:
- What forms am I required to have the customer sign and keep on file after selling a vehicle?
State Required forms:
- Buyers Order
- Odometer Statement
- County of Title Issuance (in Spanish as well if sale is completed in Spanish)
- Title Application
- Federal Privacy Notice
- Arbitration Agreement
- *Buyer’s Guide (in Spanish as well if sale is completed in Spanish)
BHPH Required forms:
- Retail Installment Contract
- GPS Disclosure
- GPS SIR Disclosure
Blue titles with Rebuilt on them
- *Rebuilt Notice
- Rebuilt Disclosure
*Must be affixed to all for sale vehicles
Additional Safety forms:
- We Owe
- Airbag Disclosure
- What am I required to report throughout the year?
- VIT: Vehicle Inventory Tax Report
This report is sent to the dealers county tax collector and county appraisal district. It is due by the 10th of each month.
If not received or post marked by the 10th the fine could be $500 and continue to increase until the report is sent.
- *The VIT is sent as a package to all dealers when they start. The package includes their account information and a form for each month.
- Vehicle Inventory Declaration: Inventory Report for previous year
This report is sent to the dealers county tax collector and county appraisal district. It is due no later than Feb. 1 of each year or,
In the case of a dealer who was not in business on Jan. 1, not later than 30 days after commencement of the business.
- Sales Tax Report: Quarterly and Annual
This report is submitted to the state comptroller.
- Will I get these forms in the mail?
- These forms are all sent to the mailing address on file with the DMV for your dealership. However, relying on this method can sometimes lead to fines if a deadline is missed due to unforeseen circumstances with the mail.
With the use of Frazer DMS, you can print the generic state report by selecting
Reports, 2- Sales Reports, 6- Inventory Tax Report.
You would simply print, sign and write “SEE ATTACHMENT” on the Harris County form.
(Harris is the only county that I am aware of who has created their own VIT, all other counties use the generic state form.)
- You can also print a Sales Tax Report from Frazer by selecting
Reports, 2- Sales Reports, 4- Sales Tax Report.
- These forms and more information can also be found online at-
Vehicle Inventory Tax – https://comptroller.texas.gov/forms/50-246.pdf (Download)
Vehicle Inventory Declaration – https://comptroller.texas.gov/forms/50-246.pdf (Download)
Sales Tax Information – https://comptroller.texas.gov/taxes/sales/forms/index.php under “Sales and Use Tax Returns and Instructions”
- VIT: Vehicle Inventory Tax Report
- Do I need a license to sell used vehicles?
Yes. You need to get a GDN license from the state. Before a GDN application can be submitted, you must obtain a bond. DMV Bond requirements are very strict, and when done incorrectly, cause unnecessary delays and frustration in your application.
Bonds must have an effective start date of the 1st
Bonds must have an effective end date of the 31st (or the last day of the month)
Bonds must cover the duration of the license
The physical address of the dealership must be completely spelled out.
Name of company should read “abc business llc/inc DBA abc business”
- What license do I need to sell salvage vehicles?
There are 2 endorsements you can apply for in eLicensing. One is to buy and sale salvage vehicles, the second is to rebuild vehicles. Keep in mind that if you are buying salvage vehicles and rebuilding them, you will have to change the salvage title to a blue rebuilt title before selling the vehicle to any customer.
- What license do I need to finance vehicles?
OCCC Motor Vehicle Finance License
- If I do not charge interest, do I still have to get a finance license?
Yes. The state considers anything with more than 1 payment a finance sale.
- Does the Seller Finance Permit allow me to finance vehicles?
No. It is only used to pay your customer’s sales tax in payments. You would apply for this permit once your Motor Vehicle Finance License from the OCCC has been approved. It’s full title is Seller Finance Sales Tax Permit and can be obtained through the State Comptroller’s website.
- What permits do I need in the city of Houston?
Occupancy Permit, Pollution Permit, Salesman Permit (this permit needs to be obtained for the owner and every salesperson)
- What permits do I need in my city and county?
Each city and county have different requirement. You will have to contact your city permit office and county permit office to make sure you have all your required permits.
- Can I be open for business on Saturday and Sunday if I close one day during the week?
No. You must be closed on either Saturday or Sunday in accordance with Texas’ Blue Laws.
- Is it okay to give a customer a cash price and a financed price?
No. The price you give your customer must be the price you are going to finance.
- Am I required to have a Sales and Use Tax Permit?
Yes. All business who sell or lease any tangible items (anything that can be touched) must have a sales and use tax permit from the state comptroller.
- If a check for over-payment is mailed to a customer and is then returned to me, can I reinvest the funds into my dealership?
No. All dealers must report all returned payments to the state comptroller as unclaimed property, claimittexas.org . Check out their FAQ here claimittexas.org/app/faq-ucp
- Can I just lump sum all the state fees on the bill of sale?
No. Each fee must be add lined individually. Frazer allows you to add them once and know you will never over charge your customers.
- Can I add the title fee that the title company charges me to the customer?
No. If you only have the GDN the documentary fee is $50. If you have your finance license, then your documentary fee can be up to $150. In Frazer you can add all costs individually to each vehicle in the added costs section of your inventory.
- Can I place flags at my dealership?
Some counties/cities require a permit, while others do not allow them. Check with your city and county permitting office.
- Why do I have to renew my finance license if I was approved less than a year ago?
All dealers must renew each year and the renewal period opens in mid June. This applies to all dealers, even if your finance license was approved in the month of June. Renewals are due on July 1st. Non-renewed licenses expire at midnight on July 31. If you do not renew by midnight on July 31st, you can renew or be reinstated between August 1st and January 28 by paying the late filing fee of $1000. On January 28th, expired licenses are permanently canceled.
- When do I renew my GDN?
GDN licenses or P#’s are renewed every 2 years.
- Is there a class or training I can get before becoming a dealer?
Yes. The DMV offers a free Dealer Training Seminar every month in a different city except in December. You register for the class online about 2 weeks before.
- Can I take my friends and customers to the auctions with me so they can purchase their cars there?
NO. As a dealer you will purchase the vehicles and pay for them at the auction. Once the vehicle is delivered you will make the adjustments (detailing, repairs, etc…) you see fit. The title will be under your business name before you can sale the vehicle. The dealer is responsible for taking the title app to the court house, NOT the customer.
- Can I sale a rebuilt vehicle to a customer and hand them the paperwork to take to the courthouse?
NO. If you are a Salvage and Rebuild dealer, you must turn the title over to a Blue Rebuilt title under your dealership before you sell it to any customer. This means that you must also have your GDN license.
- What is NMVTIS?
The National Motor Vehicle Title Information System is a federal database containing the vehicles information from states, insurance, and salvage industry. All dealers can check VINs before purchasing a vehicle to verify if it has been labeled as a salvage vehicle. All Salvage dealers must get an NMVTIS number.
- How do I get an NMVTIS number?
As a Salvage Dealer, you often labeled as an ‘Auto Recycler.’ You can get a NMVTIS number from any of the following places listed
AAMVA Single VIN Reporting Service
Web site: www.aamva.org/NMVTIS-Reporting-ServiceTelephone: 1-800-237-3463
AUTO DATA DIRECT, INC.Web site: www.add123.com
Free and Full Service NMVTIS Reporting
INSURANCE SERVICES OFFICE (ISO)Telephone: 1-800-888-4476
ISO ClaimSearch Customer Support
Web site: www.iso.com/nmvtis
You may also find more information at the following site:
- Helpful Websites
- Applying for a Sales and Use Tax Permit – comptroller.texas.gov/taxes/permit
- Applying for an EIN – www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- GDN and Salvage License Portal – texasdmv.force.com/customers/LACE_Login?startURL=%2Fcustomers%2FLACE_CertificatePage
- Finance License Portal – alecs.occc.texas.gov
- Dealer Training Seminar Sign up Page – www.txdmv.gov/dealers/dealer-services/dealer-training-seminars
- E-tag – etag.txdmv.gov/login/login.aspx
- NMVTIS resources -https://www.txdmv.gov/nmvtis-resources
- Due Dates – www.txdmv.gov/nmvtis-resources
- Helpful Contact Information
Harris County Appraisal District 713-957-5693
(Must Call and give P#) Chambers 409-267-3795
www.chamberscad.org Comol 830-625-8597
www.comalad.org Fort Bend281-344-8623
fbcad.org Liberty 936-336-5722
www.libertycad.com Montgomery County 936-756-3354 Local 936-441-2186 Metro