Jack, Kingwood, Texas

Texas is among states that assess an inventory tax on automobile dealers based on the value of the vehicles they sell in each calendar year. The tax may vary by county and may not be a significant amount, but it is one of those irksome charges that dealers try to add to the purchase price of a vehicle, along with documentary fees.


As far as we can tell, nothing in Texas law says this tax has to be passed on to the consumer, but there may be nothing to stop dealers from trying. The Texas comptroller's office can shed more light on this tax, though it would probably help if you were a CPA or lawyer.

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Answered by Rick Popely on April 15, 2013 in I'm Just Wondering | Permalink

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