Improper Issuance of Temporary Tags for Courtesy Delivery Vehicles

Texas Department of Motor Vehicles
June 21, 2018

Registration and Title Bulletin # 002-18 Policy and Procedure

TO: All County Tax Assessor-Collectors and Motor Vehicle Dealers

 

SUBJECT: Improper Issuance of Temporary Tags for Courtesy Delivery Vehicles

PURPOSE 
To ensure Texas dealers do not issue temporary tags for courtesy delivery vehicles.

DETAILS 
The department discovered licensed motor vehicle dealers are issuing buyer tags to motor vehicles they take delivery of and completing the paperwork on behalf of another dealer who actually retailed the motor vehicle. This is commonly referred to as a courtesy delivery.

In accordance with Texas Transportation Code, §503.063, a licensed motor vehicle dealer is only authorized to issue a buyer tag when retailing a motor vehicle in the dealership’s inventory. When a Texas licensed motor vehicle dealer accepts a courtesy delivery vehicle from another dealership, regardless if the dealership is in state or out of state, the receiving dealership is not allowed to issue any type of temporary tag through eTAG.

The dealership retailing the motor vehicle is responsible for issuing a buyer tag for the motor vehicle. If a motor vehicle is retailed by an out of state dealership, the out of state dealership is responsible for issuing a temporary tag for the motor vehicle. If the temporary tag expires prior to obtaining Texas registration, a 30-Day Permit may be purchased for the motor vehicle.

A Texas dealer should not record their General Distinguishing Number (GDN), commonly referred to as the P number, on any title or document submitted with the title application for courtesy delivery vehicles.

COUNTY ACTION 
Do not enter a Texas dealer’s GDN in the Registration and Title System for courtesy delivery vehicles.

CONTACT
If you have any questions, please contact your local TxDMV Regional Service Center.

Sincerely,

Jeremiah Kuntz, Director
Vehicle Titles and Registration Division JK:TT:EG