Special Inventory Fund Forms
There are two forms that dealerships must file with their local Appraisal District and the Dallas County Tax Office. (See Directory for more information).
- Dealer’s Inventory Declaration - Based on a calendar year, January 1st through December 31st, this form for each dealer type is to be filed once a year by February 1st of the following year filling out all sections. There are two important purposes for this form:
- The GDN is entered to bring up the dealer’s account and update it if needed or if it is a new dealer, to establish his account.
- It helps to determine the dealer’s tax liability.
The most important information is on Step 5, the breakdown of sales and sales amounts, and Step 6, total MV sales for prior year divided by 12 or, if a new dealership, however many months you were in business that year.
Taxes are levied on net Motor Vehicle sales (MV-retail sales) only; fleet sales (FL), dealer sales (DL), and subsequent sales (SS) are tax exempt as per the Tax Law.
Declaration Form Due Date and Penalties
The Inventory Declaration form is due by February 1st of each calendar year for existing dealers and is based on the previous year's sales. If an owner was not in business for the entire year, he is required to fill out and submit the Inventory Declaration form within 30 days after starting the business. Total sales for this new dealer may be zero but the other information on the form is entered to establish the dealer's account.
The Inventory Declaration form must be filed by the dealer with the DCAD, with a copy filed to the DCTO. Penalties for failure to file the form result in a misdemeanor offense punishable by a fine not to exceed $500.00. Each day the dealer fails to file is a separate offense. In addition, the County attaches a tax lien to the business personal property to secure the penalty's payment, collected by the district attorney, criminal district attorney, or county attorney. Also, an additional fine of $1,000 is issued for each month or part of a month in which the declaration form is not filed after it is due.
- Inventory Monthly Tax Statement - Each month dealers are required to fill out an inventory tax statement that lists all of their sales from the prior month, and remit sales tax payments. The form and the payment are due by the 10th day of the following month. For example, for vehicle sales in the month of January, the dealer should send in the statement and payment by February 10th. The statement and a copy of the payment are filed with the DCAD and a copy of the statement with the actual payment is filed with the DCTO.
All fields on this form are self explanatory except for:
Type of Sale: Enter an abbreviation such as MV, HE, VTM, MH, FL, DL or SS (see Types of Sale section)
As indicated previously elsewhere in this document, only retail sales (MV, HE, VTM, or MH) are taxed with VIT. All other categories are tax exempt. The dealer calculates the unit property tax value by multiplying the sales price for the vehicle by the unit property tax value factor.
The unit property tax value factor is calculated by taking the county aggregate tax rate and dividing it by 12, and again by 100 to obtain the monthly tax value rate. For example:
Sales Price: $25,000
|County aggregate tax rate for:
2.982325 / 12/ 100 = .002485 (unit property tax value factor)
$ 62.13 unit property tax value or Special Inventory Fund tax due on this vehicle
Tax Statement Form Due Date and Penalties
Failure to send in the monthly tax statement and payment, or filing late after the 10th of the following month incurs a penalty of five percent of the amount due. If the amount is not paid within 10 days after the due date, the penalty increases for an additional penalty of five percent of the amount due. Failing to file the statement is a misdemeanor punishable by a fine not to exceed $100.00. Each day that the dealer fails to file is a separate offense. In addition, the County attaches a tax lien to the dealer's business personal property to secure the penalty payment, collected by the district attorney, criminal district attorney, or county attorney. Also, an additional fine of $500.00 is issued for each month or part of a month in which the tax statement form is not filed after it is due.
Calculation Table (Example)
Total Sales Price
Unit Property Tax
* Call Dallas County Tax Office for your current rate.