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Texas imposes a tax on the retail sale and storage, use or other consumption in the state of taxable items purchased, leased or rented from any retailer for storage, use or consumption in the state.
Texas-plated trucks and tractors must be operated with apportioned registration (IRP) in order to qualify for an exemption — but should they be transferred to intrastate service (within one year from purchase date), the motor vehicle sales and use tax would be charged when application for any registration other than IRP is filed.
Interstate operated charter buses are also exempt from the tax, regardless of whether they are registered under the IRP.
Texas allows credit for sales or use tax on an item paid to another state, including any political subdivision of that state, on a motor vehicle that later become subject to the Texas motor vehicle use tax. The credit allowed is the amount of the prior payment to the other state or political subdivision of that state. If the purchaser is leasing a vehicle and paying the tax to another state along with the lease payments, credit can be allowed only for tax already remitted to the other state prior to operating the vehicle in Texas. Credit is not allowed for a foreign country’s tax, custom or duty tax, or import tax.
The purchaser can show a tax receipt, a seller’s invoice, or contract verifying the amount of tax paid to another state and any political subdivision of that state.