Han: Robert S. Calvert OPINION NO. WW 390
Comptroller of Public Accounts
Capitol Station Re: If an applicant (an author-
Austin, Texas ized licensed dealer) for
lnltlal.reglstratlon of a
motor vehicle In his or its
own name truthfully affirms
on oath that he purchased
the vehicle "for the exalus-
ive purpose of resale and
not for use other than to
demonstrate same to prospec-
tive purchasers thereof In
an effort to effeot the re-
sale thereof," would either
of the taxes lm osed by Sec.
l(8) and Sec. 27a) of Artlcle
Dear Mr. Calvert: 7047k, VACS, be due?
You request the opinion of this office on the follow-
lng question:
"If an applicant (an authorized licensed dealer)
for Initial registration of a motor vehicle In his
or Its own name truthfully affirms on oath that he
purchased the vehicle 'for the exclusive purpose
of resale and not for use other than to demonstrate
same to prospective purchasers thereof In an effort
to effect the resale thereof,' would either of the
taxes Imposed by Sec. 1 (a) and Sec. 2(a) of Article
7O&'k, VACS, be due?"
In order to make your question specifically applicable
to the facts upon which you request the oplnlon we have ln-
serted In parenthesis after the word applicant "an authorized
licensed dealer".
Under the facts submitted by you, we hold that neither
the sales tax nor use tax imposed by Sections 1 and 2 I%-
. spectlvely of Article 7047k, Vernon's Civil Statutes, would
be due on the demonstration cars of authorized licensed
dealers until such cars are sold. Whether a sales or use
tax would then accrue would depend upon the facts.
Hon. Robert S. Calvert, page 2, Opinion No. WW 390
We do not pass upon the right, method and form
of registration of such cara, by such auth6rlzed licensed
dealers, as this question Is not before us.
S U,M M A R.Y
Demonstration cars of authorized licensed
motor vehicle dealers are'not subject to
either the sales tax or use tax Imposed
by Sections l.and 2 tispectlvely of
Article 7047k, V.C.S. until such cars
are eold.
We do not pas8 upon the right, method and
form of registration of such cars, by such
authorized licensed dealers, as this question
Is not berore us.
Yours very truly
WILL WILSON
Attorney General of,Texas
,...
LPL/fb
APPROVED:
OPINION COMMITTEE
Qeorge P. Blackburn, Chairman
Ho&don Brownlee, Jr.
Cecil C. Rotsch
F. C. (Jack) Goodman
REVIEWED FORTHEATTORNEY OENERAL
By: W. V. GEPPERT