The Inventory Tax 50-246 form is a statement that motor vehicle dealers in Texas must file to report their vehicle inventory tax. This form is essential for ensuring compliance with state tax laws and must be submitted each month alongside the corresponding taxes owed. If you're a dealer, make sure to fill out the form accurately by clicking the button below.
The Inventory Tax 50-246 form, officially known as the Dealer’s Motor Vehicle Inventory Tax Statement, is a crucial document for motor vehicle dealers in Texas. This form must be filed monthly by dealers to report the unit property tax on all motor vehicles sold in the preceding month, as mandated by Tax Code Section 23.122. Each dealer is required to submit a separate statement for every business location and retain documentation related to each vehicle's disposition. In addition to reporting sales, the form includes sections for providing detailed information about each vehicle sold, including the sale date, model year, make, vehicle identification number, purchaser's name, and sales price. Dealers also have the option to elect an alternative filing method under Tax Code Chapter 22 if they meet specific criteria, such as limitations on the types of vehicles sold and annual sales thresholds. Timely submission is essential, as statements and tax payments are due by the 10th day of each month. Failure to comply may result in penalties, including fines and tax liens. Understanding the requirements and deadlines associated with the Inventory Tax 50-246 form is vital for maintaining compliance and avoiding financial repercussions.
Texas Comptroller of Public Accounts
Form
50-246
Dealer’s Motor Vehicle Inventory Tax Statement
CONFIDENT IAL
________________
__________
Page _________ of pages ________
Reporting Month
Year
____________________________________________________________________
____________________________
Send Original to: County Tax Office Name and Address
Phone (area code and number)
Send Copy to: Appraisal District Name and Address
GENERAL INSTRUCTIONS: This inventory tax statement must be filed by a dealer of motor vehicles pursuant to Tax Code Section 23.122. This statement is filed together with an amount equal to the total amount of the unit property tax assigned to all motor vehicles sold in the preceding month. File a separate statement for each business location and retain documentation relating to the disposition of each vehicle.
ALTERNATIVE ELECTION: Effective Jan. 1, 2014, certain dealers of motor vehicle inventory may elect to file renditions under Tax Code Chapter 22, rather than file declarations and tax statements under Tax Code Chapter 23. Tax Code Section 23.121(a)(3) allows a dealer to make this election if it (1) does not sell motor vehicles that are self-propelled and designed to transport persons or property on a public highway; (2) meets either of the following two requirements: (a) the total annual sales from the inventory, less sales to dealers, fleet transactions, and subsequent sales, for the preceding tax year are 25 percent or less of the dealer’s total revenue from all sources during that period, or (b) the dealer did not sell a motor vehicle to a person other than another dealer during the preceding tax year and the dealer estimates that the dealer’s total annual sales from the dealer’s motor vehicle inventory, less sales to dealers, fleet transactions, and subsequent sales, for the 12-month period corresponding to the current tax year will be 25 percent or less of the dealer’s total revenue from all sources during that period; (3) files with the chief appraiser and the tax collector by Aug. 31 of the preceding tax year on a form prescribed by the Comptroller a declaration that the dealer elects not to be treated as a dealer under Tax Code Section 23.121 in the current tax year; AND
(4)renders the dealer’s motor vehicle inventory in the current tax year by filing a rendition with the chief appraiser in the manner provided by Tax Code Chapter 22. A dealer who makes this election must file the election annually with the chief appraiser and the tax collector by Aug. 31 of the preceding tax year, so long as the dealer meets the eligibility requirements of law.
FILING INSTRUCTIONS: This document and all supporting documentation must be filed with the appraisal district office and the county tax assessor- collector’s office in the county in which the business is located. Do not file this document with the Texas Comptroller of Public Accounts. A directory with contact information for appraisal district and tax offices may be found on the Comptroller’s website.
STATEMENT DEADLINES: Except as provided by Tax Code Section 23.122(g), a statement and prepayment of taxes must be filed on or before the 10th day of each month.
PENALTIES: A dealer who fails to file a statement as required commits a misdemeanor offense punishable by a fine not to exceed $100. Each day during which a dealer fails to comply is a separate violation. In addition to other penalties provided by law, a dealer who fails to file or timely file a statement must forfeit a penalty of $500 for each month or part of a month in which a statement is not filed or timely filed after it is due. A tax lien attaches to the dealer’s business personal property to secure payment of the penalty. In addition to other penalties provided by law, an owner who fails to remit unit property tax due must pay a penalty of 5 percent of the amount due. If the amount due is not paid within 10 days after the due date, the owner must pay an additional 5 percent of the amount due. Unit property taxes paid on or before Jan. 31 of the year following the date on which they are due are not delinquent.
OTHER IMPORTANT INFORMATION
The chief appraiser or collector may examine documents held by a dealer in the same manner and subject to the same conditions as provided by Tax Code Section 23.121(g) and 23.122(f).
STEP 1: Dealer Information
___________________________________________________________________________________________________
Name of Dealer
Mailing Address
City, State, ZIP Code
Name of Person Completing Statement
Title
The Property Tax Assistance Division at the Texas Comptroller of Public Accounts provides property tax
For more information, visit our website:
information and resources for taxpayers, local taxing entities, appraisal districts and appraisal review boards.
comptroller.texas.gov/taxes/property-tax
50-246 • 03-17/15
STEP 2: Business’ Name and Physical Address of Business Location
Provide the appraisal district account number if available or attach tax bill or copy of appraisal or tax office correspondence concerning your account.
Name of Business
Address, City, State, ZIP Code
Account Number
Business Start Date, if Not in Business on Jan. 1
General Distinguishing Number (GDN)
STEP 3: Vehicle Inventory Information
Provide the following information about each motor vehicle sale during the reporting month. Continue on additional sheets if necessary. In lieu of filling out the information in this step, you may attach separate documentation setting forth the information required. All such information must be separately identified in a manner that conforms to the column headers used in the table below. See last page for additional instructions and footnotes.
Description of Vehicle Sold
Date of
Model
Vehicle
Sale
Make
Identification Number
Purchaser’s
Name
Type of
Sale1
Sales Price2
Unit Property
Tax3
Total Unit Property Tax4
________________________________________________
Unit Property Tax Factor
For more information, visit our website: comptroller.texas.gov/taxes/property-tax
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STEP 4: Total Units Sold and Total Sales
Number of units sold for reporting month:
______________________
_____________________
Motor Vehicle Inventory
Fleet Transactions
Dealer Sales
Subsequent Sales
Sales amounts for reporting month:
$_____________________
$ ____________________
STEP 5: Signature and Date
Signature required on last page only.
________________________________
__________________________________________________________
Print Name
_________________________________________________________
Authorized Signature
Date
If you make a false statement on this report, you could be found guilty of a Class A misdemeanor or a state jail felony under Penal Code Section 37.10
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Additional Instructions
Step 3: Information on each vehicle sold during the reporting month. Complete the information on each motor vehicle sold, including the date of sale, model year, model make, vehicle identification number, purchaser’s name, type of sale, sales price and unit property tax. The footnotes include:
1Type of Sale: Place one of the following codes by each sale reported:
MV – motor vehicle inventory – sales of motor vehi- cles. A motor vehicle is a fully self-propelled vehicle with at least two wheels which has the primary purpose of transporting people or property (whether or not intended for use on a public street, road, or highway) and includes a towable recreational vehicle. Motor vehi- cle does not include: 1. vehicles with a certificate of title that has been surrendered in exchange for a salvage certificate; nor 2. equipment or machinery designed and intended for a specific work related purpose other than transporting people or property.
FL – fleet transactions – motor vehicles included in the sale of five or more motor vehicles from inventory to the same person within one calendar year.
DL – dealer sales – sales of vehicles to another Texas dealer or dealer who is legally recognized in another state as a motor vehicle dealer.
SS – subsequent sales – dealer-financed sales of motor vehicles that, at the time of sale, have dealer financing from your motor vehicle inventory in the same calendar year.
2Sales Price: Total amount of money paid or to be paid for the purchase of a motor vehicle as set forth as sales price in the form entitled Application for Texas Certificate of Title promulgated by the Texas Department of Motor Vehicles. In a transaction that does not involve the use of that form, the term means an amount of money that is equivalent, or substantially equivalent, to the amount that would appear as sales price on the Application for Texas Certificate of Title if that form were involved.
3Unit Property Tax: To compute, multiply the sales price by the unit property tax factor. Contact either the county tax assessor-collector or county appraisal district for the current unit property tax factor. The unit property tax factor is calculated by dividing the prior year’s aggregate tax rate by 12. If the aggregate tax rate is expressed in dollars per $100 of valuation, divide by $100 and then divide by 12. It represents one-twelfth of the preceding year’s aggregate tax rate at the location. For fleet, dealer and subsequent sales that are not included in the motor vehicle inven- tory, the unit property tax is $-0-. If no unit property tax is assigned, state the reason.
4Total unit property tax for reporting month: Enter the total amount of unit property tax from the “Total for this page only” box on previous page(s). This is the total amount of unit property tax that will be submitted with the statement to the collector.
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Completing the Inventory Tax 50-246 form requires careful attention to detail. Each section of the form must be filled out accurately to ensure compliance with state regulations. After filling out the form, it should be submitted to the appropriate county tax office and appraisal district office as outlined in the filing instructions.
What is the Inventory Tax 50-246 form?
The Inventory Tax 50-246 form is a statement that motor vehicle dealers in Texas must file to report their inventory tax. This form is required under Tax Code Section 23.122 and must be submitted alongside the total unit property tax for all motor vehicles sold in the previous month.
Who is required to file this form?
Any dealer of motor vehicles in Texas must file the Inventory Tax 50-246 form. Each dealer must file a separate statement for each business location. This requirement applies to all dealers regardless of the size of their inventory.
When is the form due?
The Inventory Tax 50-246 form and the corresponding prepayment of taxes must be filed by the 10th day of each month. Failure to meet this deadline can result in penalties.
What happens if the form is not filed on time?
If a dealer fails to file the form by the deadline, they may incur a misdemeanor offense with a fine up to $100. Additionally, a penalty of $500 will be assessed for each month the statement is not filed or is filed late.
What is the Alternative Election option?
Effective January 1, 2014, certain dealers may choose to file renditions under Tax Code Chapter 22 instead of the Inventory Tax 50-246 form. This option is available if specific criteria are met, including limitations on sales and filing a declaration by August 31 of the preceding tax year.
What information must be included in the form?
The form requires detailed information about each motor vehicle sold during the reporting month. This includes the vehicle's description, sale date, model year, make, identification number, purchaser's name, type of sale, sales price, and unit property tax.
Where should the form be submitted?
The completed Inventory Tax 50-246 form must be submitted to both the appraisal district office and the county tax assessor-collector's office in the county where the business is located. It should not be sent to the Texas Comptroller of Public Accounts.
What are the penalties for failing to remit unit property tax?
If a dealer fails to remit the unit property tax due, they will incur a penalty of 5% of the amount owed. If the tax is not paid within 10 days of the due date, an additional 5% penalty will be applied.
Can the information on the form be submitted in another format?
Yes, instead of filling out the form directly, dealers may attach separate documentation that provides the required information. This documentation must be clearly identified according to the form's column headers.
Where can I find more information about the Inventory Tax 50-246 form?
For additional information, you can visit the Texas Comptroller of Public Accounts website. The site offers resources and guidance for taxpayers, appraisal districts, and local taxing entities.
Completing the Inventory Tax 50-246 form can be a straightforward process, but many individuals make common mistakes that can lead to complications. One prevalent error is failing to provide accurate dealer information. The form requires specific details such as the dealer's name, mailing address, and contact number. Omitting or incorrectly entering this information can delay processing and create unnecessary confusion.
Another frequent mistake involves the omission of the business name and physical address. It's essential to fill out this section completely. Without the correct business name and address, tax offices may struggle to match the submission with the appropriate account, leading to potential penalties or miscommunication.
Many people also overlook the importance of reporting vehicle inventory accurately. Each motor vehicle sold during the reporting month must be detailed, including the date of sale, model year, make, and identification number. Neglecting to include all necessary details can result in discrepancies that may attract scrutiny from tax authorities.
In addition, failing to calculate the unit property tax correctly is a common pitfall. The form specifies how to compute this tax by multiplying the sales price by the unit property tax factor. If this calculation is incorrect, it can lead to underpayment or overpayment, both of which can have financial repercussions.
Some individuals mistakenly submit the form to the Texas Comptroller of Public Accounts instead of the appropriate county tax office. This misstep can cause delays and may require resubmission, which can be frustrating and time-consuming.
Another mistake occurs when individuals do not file the statement by the deadline. The form must be submitted on or before the 10th day of each month. Missing this deadline can result in penalties, including fines that accumulate with each passing day.
Lastly, not retaining documentation related to the disposition of each vehicle is a significant oversight. Keeping accurate records is crucial for compliance and can serve as evidence in case of an audit. Without proper documentation, dealers may find it challenging to justify their reported sales and tax calculations.
The Inventory Tax 50-246 form is essential for motor vehicle dealers in Texas to report their vehicle sales and associated taxes. Alongside this form, several other documents and forms are typically required to ensure compliance with state regulations. Below is a list of these accompanying forms and documents, each serving a specific purpose in the reporting and taxation process.
Understanding these additional forms and documents is vital for motor vehicle dealers to navigate the complexities of tax reporting and compliance in Texas. Properly managing these requirements can prevent potential penalties and ensure a smooth operation of the business.
The Inventory Tax Form 50-246 is a key document for motor vehicle dealers in Texas. Several other forms share similarities in purpose, structure, or filing requirements. Below is a list of nine documents that are comparable to the Inventory Tax Form 50-246:
Each of these forms plays a crucial role in the property tax process, ensuring compliance and accurate reporting for businesses operating within Texas.
When filling out the Inventory Tax 50-246 form, there are several important considerations to keep in mind. Here’s a list of things you should and shouldn’t do to ensure a smooth process.
Following these guidelines will help ensure that your filing is complete and compliant with the requirements set forth by the Texas Comptroller of Public Accounts.
Understanding the Inventory Tax 50-246 form can be challenging, especially with the various misconceptions that circulate. Here are eight common misunderstandings, along with clarifications to help demystify the process.
By addressing these misconceptions, dealers can better navigate the requirements of the Inventory Tax 50-246 form and ensure compliance with Texas tax laws.
The Inventory Tax 50-246 form must be submitted by motor vehicle dealers each month, along with the total unit property tax for vehicles sold in the previous month. This ensures compliance with Texas Tax Code Section 23.122.
Dealers are required to file a separate form for each business location. It's essential to keep documentation related to the sale and disposition of each vehicle for record-keeping purposes.
Filing deadlines are strict. Dealers must submit their statements and tax payments by the 10th day of each month. Failing to do so can result in penalties, including fines and potential legal consequences.
Dealers may have the option to elect to file under a different tax code if they meet certain criteria. This alternative election can simplify the filing process, but it requires annual submission of a declaration by August 31 of the preceding tax year.