Office of the Tax Assessor Collector
Kristin R. Bulanek
 Brazoria County Tax Assessor Collector

Special Inventory Tax (SIT)

Texas law provides for the special appraisal of dealers' inventory including heavy equipment, motor vehicles, vessels and outboard motors and manufactured housing retailers. Special inventory appraisal is generally based on sales. Dealers and retailers must file inventory declaration forms with the county appraisal district each year listing the total sales, leases or rentals, as applicable, in the preceding year and an inventory tax statement with the tax office each month.

Tax Code Section 23.121 requires that a motor vehicle dealer's inventory is appraised based on the total sales of motor vehicles in the prior year.

Step 1 -Dealer Files Motor Vehicle Inventory Declaration (Form 50-244)

Form 50-244, Dealer's Motor Vehicle Inventory Declaration (PDF)

Dealers must file declarations meeting the following schedule and criteria:

• File one declaration each year not later than February 1st;
• File with the Brazoria County Appraisal District and send a copy to the Brazoria County Tax Office; and
• If you were not in business on January 1st, file a declaration form within 30 days of commencing business which is presumed to be the date of the issuance of the dealer’s GDN. The Chief Appraiser has the discretion to designate a different date that a dealer commences business.

Step 2 – Dealer Files Motor Vehicle Inventory Tax Statement (Form 50-246)

Form 50-246, Dealer's Motor Vehicle Inventory Tax Statement (PDF)

Dealers must file statements meeting the following schedule and criteria:

• File 12 statements per year;
• File by the 10th of each month for the prior month;
• File with the Brazoria County Tax Office, together with prepayment of taxes;
• Send a copy of the form to the Brazoria County Appraisal District;
• File a statement indicating no sales, if no motor vehicles were sold during the month;
• File monthly, but do not assign unit property tax or send prepayment of taxes if not in business on January 1st;
• Retain documentation of each motor vehicle sold.

A dealer who does not file the monthly tax statement by the 10^th day of the following month commits a misdemeanor offense punishable by a fine up to $100 per day until filed.  In addition, a dealer forfeits a penalty of $500 for each month or portion of month that it is not filed.

The State Comptroller's Office publishes the Motor Vehicle Dealer's Special Inventory Manual (PDF) to assist dealers in filing motor vehicle inventory declarations and tax statements.

Tax Code Section 23.1241 provides for the appraisal of dealers' heavy equipment inventory for the purpose of property tax computation based on the sales, leases and rentals of heavy equipment in the prior year.

The market value of a dealer's heavy equipment inventory on Jan. 1 is the total annual sales (less sales to dealers, fleet transactions and subsequent sales) for the 12-month period corresponding to the preceding tax year, divided by 12. For an item of heavy equipment that is sold during the preceding tax year after being leased or rented for a portion of that same tax year, the sales price is the sum of the sales price plus the total lease and rental payments received for the item in the preceding tax year.

Step 1 – Dealer Files Heavy Duty Inventory Declaration (Form 50-265)

Form 50-265, Dealer's Heavy Equipment Inventory Declaration (PDF)

Dealers must file declarations meeting the following schedule and criteria:

• File a declaration each year not later than February 1^st;
• File the declaration with the Brazoria County Appraisal District in which the business location of the inventory is situated;
• Send a copy of the declaration to the Brazoria County Tax Office; and
• If not in business on January 1^st, file a declaration not later than 30 days of opening the business

Step 2 – Dealer Files Heavy Duty Inventory Tax Statement (Form 50-266)

Form 50-266, Dealer's Heavy Equipment Inventory Tax Statement (PDF)

Dealers must file statements meeting the following schedule and criteria:

• File 12 statements per year;
• File by the 20th of each month following the reporting month (for example, file January inventory tax statement by Feb. 20);
• File the originals with the Brazoria County Tax Office and copies with the Brazoria County Appraisal District;
• File a statement indicating no sales, leases or rentals if the dealer does not sell, lease or rent heavy equipment during the month;
• If not in business on January. 1, file for each month in business; and
• If not in business on January. 1, do not assign a unit property tax to sold items or remit money with the statement.

A dealer who does not file the monthly tax statement by the 20^th day of the following month forfeits a penalty of $500 for each month or portion of month that it is not filed.

The Texas Comptroller's office publishes the Heavy Equipment Dealers' Special Inventory Manual (PDF) to assist dealers in filing declarations and tax statements.

Tax Code Section 23.124 requires that the market value of a dealer's vessel and outboard motor inventory is based on the total sales of the dealer's vessel and outboard motors in the prior year.

Step 1 – Dealer Files Vessel and Outboard Motor Inventory Declaration (Form 50-259)

 Form 50-259, Dealer's Vessel and Outboard Motor Inventory Declaration (PDF)

Dealers must file declarations meeting the following schedule and criteria:

• File one declaration per year, not later than February 1^st;
• File with the Brazoria County Appraisal District and send a copy to the Brazoria County Tax Office; and
• If not in business on January 1st , file a declaration within 30 days of opening the business.

Step 2 – Dealer Files Vessel and Outboard Motor Inventory Tax Statement (Form 50-260)

Form 50-260, Dealer's Vessel and Outboard Motor Inventory Tax Statement (PDF)

Dealers must file statements meeting the following schedule and criteria:

• File by the 10^th of each month following the reporting month;
• File with the Brazoria County Tax Office, including a check for pre-payment of taxes;
• Send a copy of the form to the Brazoria County Appraisal District;
• If you do not sell a vessel or outboard motor during the month, you must file a tax statement indicating no sales;
• If not in business on January 1^st, file each month, but do not send a prepayment of taxes; and
• retain documentation of each vessel and outboard motor sold.

A dealer who does not file the monthly tax statement by the 10^th day of the following month commits a misdemeanor offense punishable by a fine up to $100 per day until filed.  In addition, a dealer forfeits a penalty of $500 for each month or portion of month that it is not filed.

The Comptroller's office publishes the Vessel and Outboard Motor Dealer's Special Inventory Manual to assist dealers in filing declarations and tax statements.

Tax Code Section 23.127 requires that a manufactured housing retailer's inventory be appraised based on the total sales of manufactured homes in the prior year.

Step 1 – Dealer Files Retail Manufactured Housing Inventory Declaration (Form 50-267)

Form 50-267, Retail Manufactured Housing Inventory Declaration (PDF)

Dealers must file declarations meeting the following schedule and criteria:

• File a declaration each year not later than February 1st;
• File the declaration with the Brazoria County Appraisal District in which the RMHI is located;
• Send a copy of the declaration to the Brazoria County Tax Office; and
• If not in business on January 1st, file a declaration within 30 days of opening business.

Step 2 – Dealer Files Retail Manufactured Housing Inventory Tax Statement (Form 50-268)

 Form 50-268, Retail Manufactured Housing Inventory Tax Statement (PDF)

Dealers must file statements meeting the following schedule and criteria:

• File 12 statements per year;
• File by the 10^th of each month following the reporting month;
• File with the Brazoria County Tax Office, including the pre-payment of taxes;
• Send copy of the form to the Brazoria County Appraisal District;
• If you do not sell a unit of manufactured housing during a month, you must file a tax statement indicating no sales;
• If not in business on January 1st, file each month but do not assign unit property tax and do not remit a pre-payment of taxes; and
• retain documentation of each unit of manufactured housing sold.

A dealer who does not file the monthly tax statement by the 10^th day of the following month commits a misdemeanor offense punishable by a fine up to $100 per day until filed.  In addition, a dealer forfeits a penalty of $500 for each month or portion of month that it is not filed.

The Comptroller's office publishes the Manufactured Housing Retailer's Special Inventory Manual (PDF) to assist dealers in filing declarations and tax statements.