What You Need To Know About Starting Your New Dealership

Motor Vehicle Inventory Tax Statement (VIT) and Inventory Declaration (Declaration)

Within 30 days of the active date of your license, (not when you open for business or start selling vehicles), notify both the county tax office and appraisal district where the dealership is located that you are a new dealer and request to setup an account.

• VIT: A VIT reports information on vehicles sold in the previous month. File these at both the county tax office and appraisal district. Regardless if no sales are made, you must still file the form reporting zero sales. If filed late, penalties may be assessed. (Most often due on the 10th day of each month, check with your county for details.)
• Declaration: A Declaration reports the total number of sales made during previous year. File these at both the county tax office and appraisal district. Regardless if no sales are made, you must still file the form reporting zero sales. If filed late, penalties may be assessed. (Due between January 1 - February 1 of each year.

Financing Sales

If you intend to provide in-house or third party motor vehicle financing sales, contact the Office of Consumer Credit Commission at 512-936-7600, toll free at (800) 538-1579 or at www.occc.state.tx.us to obtain the required sales finance license.

Vehicle Sales to Retail Purchasers

Once a vehicle is sold, you have 20 business days for cash sales and 3rd party financed sales (or 45 calendar days for in-house financed sales) to file the appropriate paperwork with the county tax office. This process includes transferring title of the vehicle to the retail purchaser, paying vehicle registration fees [registering the vehicle on behalf of the customer], and paying sales taxes. If you need help with this process, contact the TxDMV Customer Service at (888) 368-4689, or your local county tax office.

Minimum Vehicle Sales

You must remain regularly and actively engaged in business by selling or assigning at least 5 vehicles in a calendar year or the license may be revoked or canceled.

Changing License Information

You are required to ensure the information on your license record is current. Common changes are:

• Contact information changes, such as mailing address, phone number, or email
• Moving: adding or closing locations
• Business changes, such as ownership, management, business name or DBA changes

Log on and choose either “Amend a License” or “Change General License Info” to update your information directly within the eLICENSING system.

Canceling a License

If you close your business, you must log on to eLICENSING and choose "Close a License." Do not assume the license will close after it expires. All plates, stickers, and plate receipts must be returned to the Texas Department of Motor Vehicles within 10 days of license closure.

Dealer Plates

Dealer Plate Uses

Dealer Temporary Plate

• Issued for a two-year term, matching the term of the license.
• $10 per plate.
• Allowed uses:
• Demonstrating a vehicle to a prospective buyer
• On a vehicle loaned to a customer while the customer’s vehicle is being repaired
• To transport a vehicle from one of the dealer’s premises to another of their premises
• To transport a vehicle from the dealership to a place where it will be repaired, reconditioned, or serviced
• To transport the vehicle from the state line, or a location in this state where the vehicle is unloaded, to the dealer’s premises
• For road testing the vehicle
• On a vehicle that the dealer is allowing its use by a charitable organization.

Standard Dealer Plate

• Issued for a two-year term, matching the term of the license.
• $90 per plate.
• Allowed uses:
• Personal use
• On a vehicle loaned to a customer while the customer’s vehicle is being repaired
• To transport a vehicle from one of the dealer’s premises to another of their premises
• To transport a vehicle from the dealership to a place where it will be repaired, reconditioned, or serviced
• To transport the vehicle from the state line, or a location in this state where the vehicle is unloaded, to the dealer’s premises
• For road testing the vehicle
• On a vehicle that the dealer is allowing its use by a charitable organization.

Dealer Temporary Plate Allocations

Maximum number of Dealer Temporary Plates TxDMV will issue to a new license applicant during the applicant’s first license term:

If a new license applicant is:	Maximum number of dealer’s temporary license plates issued during the first license term is:
Franchised Motor Vehicle Dealer	200
Franchised Motorcycle Dealer	50
Independent Motor Vehicle Dealer (i.e., Motor Vehicle GDN only)	25
Independent Motorcycle Dealer (i.e., Motorcycle GDN only)	10
Franchised or Independent Travel Trailer dealer (i.e., Travel Trailer GDN)	10
Trailer or Semitrailer dealer	5
Independent Mobility Motor Vehicle Dealer	5
Wholesale Motor Vehicle Dealer	10

Maximum number of Dealer Temporary Plates TxDMV will issue to an existing license holder who has a dealer license as of July 1, 2025:

The number of plates in section a, above, PLUS:      

If a vehicle dealer is:	Maximum number of additional dealer’s temporary license plates issued with a demonstrated need through proof of sales is:
1. A dealer selling 26 to 50 during the previous 12-month period	5
2. A dealer selling 51 to 100 during the previous 12-month period	10
3. A dealer selling 101 to 150 during the previous 12-month period	15
4. A dealer selling 151 to 199 during the previous 12-month period	20
5. A dealer selling 200-299 during the previous 12-month period	25
6. A dealer selling more than 300 vehicles during the previous 12-month period	30

Feedback

We are always trying to improve and appreciate your feedback. If you have a suggestion, a complaint or even a compliment, email us at MVDLicensing@TxDMV.gov.

Please make sure to make use of the TxDMV.gov website for dealer updates, rule changes, publications: such as the dealer manual, licensing forms, and schedule of dealer training seminars, and links to the Texas Occupations Code, Texas Transportation Code, and Chapter 215 – Motor Vehicle Distribution Rules.