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What is Dealer's Special Inventory tax?

For property tax purposes, Texas law 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 a Dealer’s Motor Vehicle Inventory Declaration from listing the total value of the inventory sold in the prior year. The dealer must also file with the county tax office a monthly form Dealer's Motor Vehicle Inventory Tax Statement listing the motor vehicles sold, and prepay their property taxes for each vehicle, a copy of this monthly form must also be sent to the county appraisal district.