Texas Comptroller Affirms Motor Vehicle Sales Tax Assessment Against Used Car Dealership Operator (Decision 3 of 3)

The Texas Comptroller of Public Accounts Dec. 12, 2022 affirmed Taxpayer’s motor vehicle sales tax assessment and waived a penalty. Taxpayer operated a used car dealership and engaged in seller-financed sales. The Tax Division (staff) of the comptroller audited Taxpayer for excise tax compliance and assessed additional tax, penalty, and accrued interest. Taxpayer requested redetermination, arguing that the assessment was erroneous. Taxpayer also contended that a portion of the tax was collected but not remitted because of the COVID-19 pandemic and requested a waiver of the penalty. The Administrative Law Judge (ALJ) noted: 1) the staff demonstrated motor vehicle tax ...