Friday, February 29, 2008

April deadline to exempt your vehicle from tax

Don't ignore April deadlines to exempt your vehicle from taxation
Thanks to last year's amendment to the Texas Constitution, you aren't required to pay tax on any personally owned vehicle that is also used for business purposes. However, you may need to file an annual exemption form in order to avoid this tax.
Do I have to file an exemption?If you were taxed on your vehicle in 2007, you must file an exemption form to receive a rebate. If you’ve never received a tax bill for your vehicle, you may receive one for 2008 if you don’t file an exemption. Protect yourself from a tax you don’t have to pay: File an annual exemption.
How do I get an exemption? Contact your local appraisal district to see what its requirements are; a list of county appraisal districts with each district's contact information is available online. Some appraisal districts have created separate forms for 2007 and 2008 exemptions, while others are using the form published by the Texas comptroller's office (PDF). Use whatever form your local appraisal office requires.
What are the deadlines?Your exemption for 2007 must be filed by April 1; your 2008 exemption is due April 30. The annual deadline thereafter will be April 30.
What if my appraisal office doesn't have a form?If your local appraisal office fails to provide clear directions on how to exempt yourself from mixed-used vehicle taxation, the Texas Association of REALTORS® recommends that you file an exemption with your local appraisal district using the form published by the Texas comptroller's office (PDF).
What if I lease my vehicle?The exemption applies only to personally owned vehicles. Leasing companies owe the tax for leased vehicles. However, they may pass on the tax to you unless you have filed an affidavit (PDF) with the leasing company stating you use the vehicle for personal use 50% or more of the time.

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