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Paige Lawrence talks about annual inventory declarations and monthly tax statements. Paige also explains who is required to files these documents and what penalties can be levied by failing to file. (5:32 mins.)
Annual Inventory Declarations
Hi, I am Paige Lawrence with the Harris Central Appraisal District.
I will provide an overview of the requirements for annual inventory declarations and monthly tax statements. Annual declarations and monthly inventory statements must be filed as long as you have a valid dealer number, regardless of whether you had any inventory January 1, or whether you are currently selling vehicles. These requirements pertain to any person or business considered to be a dealer under Chapter 23 of the Texas Property Tax Code.
The date the dealer number is issued, is considered the business start date whether you have opened the business yet or not. You are considered to be in business until the license is canceled or expires. For heavy equipment dealers, the date an account is opened by HCAD is your start of business date.
When you first receive your active dealer number from the issuing agency, you have 30 days from the active date to file your first declaration form. Submit the first declaration to HCAD and a copy to the tax assessor-collectors office. The addresses for both offices are located in the top left and right corners of the form. HCAD will then set up an account for your business when the initial declaration is received and issue you an HCAD account number.
Annual Dealer Inventory Declarations
Each year, you need to file a declaration of the prior year sales with the appraisal district and send a copy to the county tax assessor-collectors office by February 1. Both must have either a USPS postmark or a contract carrier receipt mark showing the date the documents were sent. The postmark or receipt mark must show a date on or before the due date of Feb 1. Make sure to use the appropriate dealer inventory declaration for your specific type of inventory.
You will be subject to a civil or misdemeanor penalty if you do not file the annual inventory declaration. The civil penalties are calculated up to $1,000 monthly, and misdemeanor penalties are calculated up to $500 per day.
The market value of the inventory on January 1 is the average monthly sales for the preceding year. All sales, even dealer to dealer and export sales must be reported, regardless of the type of sale.
Heavy equipment dealers are to file Annual Declarations and monthly statements, unless they render their inventory in that tax year by filing a rendition in accordance with Chapter 22.
Monthly Vehicle Inventory Tax Statements
You must submit a monthly vehicle inventory tax statement, along with your vehicle inventory tax payment, to the county tax assessor-collector. Make sure to use the appropriate inventory tax statement for your specific type of inventory. The current month sales with tax payments must be reported and sent with postmark or receipt mark no later than the 10th day of the following month. For heavy equipment dealers, this deadline is the 20th day of the following month.
The civil penalties are calculated up to $500 per month or part of a month in which the statement is not filed, or a misdemeanor penalty calculated up to $100 per day during the period the failure to comply occurs.
If you are a new dealer, by law you are required to file an inventory tax statement only. No inventory tax payments should to be made for the remainder of the year in which your license was issued.
Penalty Waiver Requests
The chief appraiser and tax assessor-collector may waive certain penalties for failing to file a declaration or tax statement for motor vehicles, dealers heavy equipment, or retail manufactured housing inventory by the deadline. Per the Tax Code, these penalties may only be waived if the taxpayer files a written waiver request no later than the 30th day after the date a declaration or statement was required to be filed. The taxpayer’s failure to file a timely declaration or statement must also be the result of a disaster, or caused by an event beyond the taxpayer’s control that destroys the taxpayer’s property or records.
Alternative Election
A dealer as defined by Tax Code Section 23.121 my also elect to render the dealer’s motor vehicle inventory by filing an Election for Rendition. To be eligible, a dealer must meet the requirements listed on the Dealer’s Motor Vehicle Election for Rendition.
In closing, All the forms mentioned in this video are available on our website, www.hcad.org. Also, a list of Frequently Asked Questions is available with more information.
We hope you have found this video informative and thank you for watching!
REFERENCE
Texas Property Tax Code can be accessed: www.hcad.org under Help tab, under Laws, Rules & Forms: Texas Property Tax Code