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005-11 Collection of the Delinquent Transfer Penalty

Registration and Title Bulletin - #005-11

Date: February 11, 2011

To:

All County Tax Assessor-Collectors

Subject: Collection of the Delinquent Transfer Penalty

These documents contain text of correspondence sent by TxDMV to the county tax assessor-collectors, statutory agents who provide vehicle registration and titling services for citizens in Texas. This information is provided to apprise the general public of issues affecting the state's vehicle titling and registration process.

PURPOSE

To serve as a reminder of the correct processing procedures for the collection of the Delinquent Transfer Penalty in the RTS Additional Collections Event.

DETAILS

House Bill 481, passed during the 80th Legislative Session, included provisions that changed the way the penalty for late transfer of a Texas title is calculated. As a reminder, buyers of currently registered Texas-titled vehicles are required to file an application to transfer title and registration within 20 working days of the sale or late transfer penalty fees may be assessed. Seller-financed transactions by dealers have 45 calendar days from the date of title assignment. The title filing requirement for all other dealer retail sales remains 20 working days.

If the assignment date of the transaction is on or after January 1, 2008, and is filed:

  • 21 to 31 working days after the date of sale, the penalty is $25
  • On or after the 32nd working day after the date of sale, add $25 for each additional 30 calendar days or part of a 30-day period

If the assignment date of the transaction was prior to January 1, 2008, it will be assessed the $10 Delinquent Transfer Penalty. The $10 Delinquent Transfer Penalty also applies to dealer filed transactions.

RTS will automatically calculate the penalties correctly in the Title Event; however, collection of these penalties is a manual process in the Additional Collections Event. Department reports reflect that when these penalties are being collected in the Additional Collections Event the wrong Fee Description is sometimes selected.

COUNTY ACTION

When collecting a Delinquent Transfer Penalty in the RTS Additional Collections Event, remember to select the appropriate Fee Description:

For transactions with an assignment date on or after January 1, 2008, select "DELQ TRANS PENALTY 2008."

For transactions with an assignment prior to January 1, 2008, select "DELINQUENT TRANSFER PENALTY." This penalty description also applies to dealer filed transactions that are 21 days or more after the date of sale.

CONTACT

If you have any questions or need additional assistance, contact your local Vehicle Titles and Registration Division Regional Office.

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