Dealer Motor Vehicle Inventory – Monthly Statements and Declarations

What Is Dealer Motor Vehicle Inventory?

Motor vehicle dealers are taxed under a special inventory system rather than the standard business personal property inventory rules.   

Under Texas Property Tax Code §23.121, the value of a dealer’s motor vehicle inventory is based on the total sales of vehicles during the prior year, rather than the inventory physically on hand on January 1.  

1. Annual Declaration Requirement

Motor vehicle dealers must file an annual inventory declaration.

Form: Form 50-244 – Dealer’s Motor Vehicle Inventory Declaration

Due date: February 1 each year

The declaration reports the dealer’s total annual vehicle sales from the prior year. 

2. Monthly Inventory Tax Statement

Motor vehicle dealers must also file a monthly inventory tax statement.

Form: Form 50-246 – Dealer’s Motor Vehicle Inventory Tax Statement

Due date: On or before the 10th day of each month

The statement reports all vehicles sold during the previous month and requires the dealer to prepay the property tax associated with each vehicle sold. 

Dealers must file the statement even if no vehicles were sold during the month. 

Important Notes:

• This reporting system is commonly called the Vehicle Inventory Tax (VIT) system. 
• Taxes are prepaid monthly based on vehicle sales. 
• Dealer inventory is not valued the same way as standard business inventory.

Need Help? 

Contact the Business Personal Property Department at:

Bexar Central Appraisal District
411 N Frio St
PO Box 830248
San Antonio, TX 78283-0248
Phone: 210-242-2432
Fax: 210-242-2454 or 210-242-2453