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052-07 House Bill 481: Increased Late Transfer Penalties and Electronic Vehicle Transfer Notifications

Registration and Title Bulletin - #052-07

Date: December 27, 2007

To: All County Tax Assessor-Collectors

Subject: House Bill 481: Increased Late Transfer Penalties and Electronic Vehicle Transfer Notifications


Attachment 2007 052-attach2



These documents contain text of correspondence sent by TxDOT 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.


To provide information regarding increased penalties for late transfer of Texas titles and electronic submission of vehicle transfer notifications to the department. A copy of HB 481 is attached.


Late Transfer Penalties

When a currently registered Texas-titled vehicle is sold, the buyer is required to file an application to transfer title and registration within 20 work days or the applicant may be subject to a late transfer penalty. HB 481 increases the late transfer penalty for most applicants, effective January 1, 2008.

Generally, if the transaction is filed:

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

HB 481 also provided some exemptions from the penalties, different penalty amounts, and different timeframes for filing transactions. Attached is a reference sheet (Late Transfer Penalty Overview) that provides more detailed information and a Late Transfer Penalty Flow Chart to assist you in determining whether a title transfer transaction is subject to late transfer penalties.

Electronic Vehicle Transfer Notification

HB 481 also provides that:

A vehicle seller can electronically notify the department of the sale of their vehicle (Vehicle Transfer Notification) and that a signature is not required on the electronic submission. We are in the process of developing an electronic method for customers to submit a Vehicle Transfer Notification that will be available in 2008. Once available, customers will have another way to have their record marked with the "Vehicle Sold" remark.

A vehicle seller must submit a vehicle transfer notification to the department within 30 days to be provided any protection from civil and criminal liability as given in law, such as presuming the buyer named on the notification is the owner.


Until programming providing an automated method of calculating the late transfer penalties is completed, the increased late transfer penalties must be manually calculated.

To collect late transfer penalties on:

  • Dealer filed transactions ($10) will continue to be collected by selecting Charge Transfer Penalty on the Title Additional Info screen (TTL008).
  • All other penalties must be manually calculated and collected in the Additional Collections Event using the new DELQ TRANS PENALTY 2008 Account Code. See the attached excerpt from RTS Version 5.5.0 Release Notes (RTB# 046-07, Attachment 3).

Please continue to encourage vehicle owners to submit a Vehicle Transfer Notification (Form VTR-346) for vehicles they have sold if the title has not been transferred out of their name.


If you have any questions or need any additional information, please contact your local Vehicle Titles and Registration Division Regional Office. You may also call Mike Craig, Deputy Director, or me at (512) 465-7570.

In some cases the Registration and Title Bulletins (ins (RTB) contain attachments. If you require a copy of the original signed RTB and the attachments, please e-mail us and include the RTB number. Repeat requests are subject to charges in accordance with Open Record policies.

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