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Please review and distribute as appropriate.
In support of Governor Greg Abbott’s waiver on the time in which to apply for title and delinquent transfer penalty, the Comptroller of Public Accounts (CPA) provided an extension for when motor vehicle sales tax is due and subsequently when the delinquent sales tax penalty may be assessed for a title transaction. For additional information on the extension for motor vehicle sales tax, please visit the CPA website at https://comptroller.texas.gov/taxes/motor-vehicle/sales-use.php.
To accommodate the extension, programming changes to webDEALER are scheduled for deployment over the weekend of May 16, 2020. County webDEALER users will be able to modify the delinquent sales tax penalty prior to approval on any transaction subject to the extension and assessed the delinquent sales tax penalty. The Computed Fees section on the Title Preview page will display an edit icon and include the message “Sales Tax Penalty Percentage can be modified,” as shown below.
webDEALER will continue to calculate the delinquent sales tax penalty based on the date of sale. County tax offices should use the date of sale and guidance from the CPA to determine whether the penalty should be modified. The Fee page, as shown below, will provide a new Sales Tax Penalty Information section with a dropdown to allow a county user to modify the penalty percentage to 10, 5, or 0 percent, as appropriate. Once the percentage is selected from the dropdown, the Calculate Sales Tax Penalty Fee button must be selected in order for the penalty fee to update, and the Save button must be selected to retain the changes.
County tax offices should inform the entity that submitted the title transaction if the penalty was modified to ensure the proper amount is remitted. Additionally, once the transaction has been approved in webDEALER, print the final receipt as it will reflect the latest fee amounts. The CPA should be consulted regarding any refunds for the delinquent sales tax penalty for title applications that have already been approved in webDEALER.
Thank you,
Jeremiah Kuntz, Director
Vehicle Titles and Registration Division
Texas Department of Motor Vehicles
If you have any questions concerning this communication, please contact your local TxDMV Regional Service Center.
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