I'm seeking clarification on some issues. It's a rather confusing scenario so, unless I'm forced to explain further, I'm going to leave those details out.
1. If a trailer is going to be registered (Texas) as farm-use...will sales tax need to be paid on it?
2. If a trailer is purchased from a dealer by one person and the title & registration fees are paid by them, then it is transfered to another person...will the second person be responsible for just transfer & registration fees OR is there an additional charge regarding the title?
3. If a person is purchasing a trailer and paying via check, does the trailer HAVE to be registered in that person's name or can it go in ANYONE'S name, as long as they are present and provide identification?
4. What are the requirements regarding taxes (or other fees, charges, etc) if a trailer is WON by someone (like rodeo competition, roping, etc)???
Posted 2008-11-13 10:53 PM (#94864 - in reply to #94858) Subject: RE: Trailer Title, Registration, Taxes & Fees - Questions
Regular
Posts: 62 Location: Houston
Two trailer dealers (I'm in Texas also) have told me that I don't need to pay sales tax, and that as long as I don't use it for commercial use, I can buy the farm tag for $39.99. I'm assuming they know what they are talking about and would be charging the tax if it was needed. They did warn me that if I decided to run a carpet installation business out of the trailer, I would be breaking the law if I registered it with the farm tag.
Sorry, no clue on the transfer issues or trailer-winning. But if I won a free trailer, I would very happily pay whatever taxes or transfer fees were required!!! I wish I had that dilemma....
Posted 2008-11-14 11:00 AM (#94883 - in reply to #94858) Subject: RE: Trailer Title, Registration, Taxes & Fees - Questions
Expert
Posts: 1351 Location: Decatur, Texas
1) If you are going to use it for farm use, NO TAX IS TO BE PAID!
2) Each time the trailers is transfer's owners the transfer/title fee most be paid. (around 33. bucks)
3) Can be put in anybodys name, as long as they have a name and address.
4) Just a transfer fee and a gift tax of 15 or 20 bucks.!
I am a dealer in motor vehicle dealer in Texas and lucky for me my mother works aT THE TAX OFFICE, SO i KNOW THE INS AND OUTS.
Posted 2008-11-14 3:20 PM (#94893 - in reply to #94858) Subject: RE: Trailer Title, Registration, Taxes & Fees - Questions
Member
Posts: 15
Location: California
Don't know the answers to questions 1-3, but I won a trailer in California two years ago and had to pay sales tax on the retail value of the trailer plus the license.
Posted 2008-11-14 4:15 PM (#94895 - in reply to #94858) Subject: RE: Trailer Title, Registration, Taxes & Fees - Questions
Veteran
Posts: 285
One thing to consider when titeling it for insurance purposes. Our insurance company would only cover the liability end of it if the title of truck that would be towing it and the trailer were in the same name. You might just want to check with your agent to be sure you are covered.
Posted 2008-11-14 5:39 PM (#94900 - in reply to #94895) Subject: RE: Trailer Title, Registration, Taxes & Fees - Questions
Expert
Posts: 1351 Location: Decatur, Texas
We had to get a extra policy on each trailer we have (but I hav full coverage on everything, just because all of the dead beat that don't even bother to buy insurance). And one is in my name and the other is in the better halfs name. But trailer insurance is CHEAP!
My truck liability insurance covers any trailer I haul NO MATTER what name it is in!
Trailer Title, Registration, Taxes & Fees - Questions
