Free Texas Odometer Disclosure Bill of Sale
Federal law puts the odometer duty in writing: 49 U.S.C. § 32705 covers every qualifying transfer, reaching vehicles of model year 2011 and newer until each turns 20 model years old — 2010-and-older models, trucks over 16,000 lbs GVWR, and new vehicles before first retail sale sit outside it. In Texas, the seller writes the odometer reading on the signed title, and Form 130-U (Application for Texas Title and/or Registration) also records the reading in items 9 and 10; the 6.25% motor vehicle sales tax is calculated on the greater of the actual sales price or 80% of the Standard Presumptive Value (SPV).
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Odometer disclosure is a federal requirement under 49 CFR §580, not just a best practice — and falsifying mileage is a federal crime. Our guide explains exactly what each field requires, which model years are exempt, and what to do if the odometer has rolled over. Read: Odometer Disclosure Statement: What It Is & What to Write →
Texas Odometer Disclosure Bill of Sale — What You Need to Know
Primary Form
Standard bill of sale
Not required for a titled Texas vehicle — the filing is Form 130-U
Agency
TxDMV
Texas Department of Motor Vehicles
Primary ID Field
VIN
Sales Tax
6.25%
Title Required
Yes
Inspection
Required
Texas Odometer Disclosure Sale — Step-by-Step Checklist
- Obtain Texas Form 130-U (Application for Texas Title and/or Registration).
- Write the exact mileage at the time of sale on the Texas title, and the same reading (no tenths) in item 9 of Form 130-U.
- On Form 130-U item 10, leave the boxes blank if the reading is the actual mileage. Otherwise check Not Actual (a known discrepancy), Exceeds Mechanical Limits (a rolled-over odometer), or Exempt (only for a truly exempt vehicle).
- Both seller and buyer sign the odometer statement on the title, and both sign Form 130-U (the seller line and the applicant line).
- The seller should file a Vehicle Transfer Notification (VTN) with the TxDMV within 30 days of the sale to terminate liability for the vehicle.
- The buyer submits Form 130-U and the signed title to a county tax assessor-collector office within 30 days of purchase and pays 6.25% tax on the greater of the sales price or 80% of SPV (or a certified appraised value, if lower than 80% of SPV but not below the price paid).
- Keep copies of every signed document for your records.
Common Pitfalls
- An 'as-is' clause does not waive the seller's federal odometer disclosure obligation under TIMA — the disclosure on Form 130-U is required by federal law.
- Texas's SPV system means the sales tax may be based on the SPV rather than the stated price; misstating the mileage or the price is fraudulent.
- Confusing 'not actual mileage' with 'exceeds mechanical limits' is a legally significant misclassification — use the rollover certification whenever the odometer has cycled past its maximum digit.
- Failing to file the Vehicle Transfer Notification leaves the seller exposed to liability for tolls, tickets, and accidents involving the vehicle after the sale.
- Knowing violations of the federal odometer law can bring criminal fines and up to three years in prison; civil liability is treble actual damages with a $10,000 statutory minimum.
- Trusting the dash over the paperwork. TxDMV tells buyers to compare the odometer with the mileage on the title and on service records and oil-change stickers, and to check pedal and tire wear. A car showing 20,000 miles or less should still have its original tires.
Texas Odometer Disclosure Bill of Sale — FAQs
What is Texas Form 130-U and where is the odometer disclosure on it?
Form 130-U is Texas's combined title application and registration form. It records the odometer reading in items 9 and 10 and has signature lines for the seller and the applicant (buyer). The seller also writes the mileage on the signed Texas title. The completed form is submitted to the county tax assessor-collector's office.
What is Texas's Standard Presumptive Value and how does it affect the sales tax?
Texas calculates the 6.25% motor vehicle sales tax on the greater of the actual sales price or 80% of the SPV, a value derived from similar vehicle sales. A buyer who paid less than 80% of SPV can use a certified appraisal (Form 14-128) instead. This prevents tax avoidance through artificially low declared prices. Accurate mileage matters on its own under federal odometer law.
What is a Vehicle Transfer Notification and does the seller have to file one?
The VTN is a TxDMV form that formally notifies the state that a vehicle has been sold. Sellers are strongly encouraged to file it within 30 days of sale to terminate liability for the vehicle. It can be submitted online at the TxDMV website.
Is a 2001 model-year vehicle exempt from odometer disclosure in Texas?
Yes — vehicles of model year 2010 and older are exempt from the federal disclosure requirement, and a 2001 model sits well inside that line. Only 2011-and-newer vehicles disclose, until they reach 20 model years.
What penalties apply to odometer fraud in Texas?
Under federal TIMA, criminal penalties include fines and imprisonment up to three years per violation. Civil liability allows the buyer to recover treble actual damages, with a $10,000 statutory minimum per violation.
Which odometer box do I check on Texas Form 130-U?
Item 9 is the odometer reading, with no tenths. Item 10 reads "This is the Actual Mileage unless the mileage is" and offers three boxes: Not Actual, Exceeds Mechanical Limits, and Exempt. If you check none, you are stating the reading is the actual mileage. Check Exempt only for a vehicle that really is exempt, such as a model year 2010 or older.
What do the odometer brands on a Texas title mean?
TxDMV prints four: Actual Mileage, Not Actual Mileage, Mileage Exceeds Mechanical Limits, and Exempt. Several record notes, such as odometer replaced, odometer discrepancy, odometer may be altered, and tampering verified, all print on a Texas title as Not Actual Mileage. A "Call Title Division" note means TxDMV knows of a problem it cannot print on the title.
I am buying a 2011 or newer car with an out-of-state title marked Exempt. What happens in Texas?
Texas brands it Not Actual Mileage. TxDMV Bulletin 013-20 says some states kept marking 2011 models exempt after the federal 20-year rule began on January 1, 2021. When such a title is used to apply for a Texas title, the county records the brand as Not Actual Mileage, and that brand stays on the vehicle record. Factor that into the price before you buy.
The Texas title is lost or held by the lender. How does the seller disclose the mileage?
With Form VTR-271-A, the Power of Attorney for Transfer of Ownership to a Motor Vehicle. Since 2021, TxDMV allows it when the vehicle needs an odometer disclosure and the title is lost, held by a lienholder (paper or electronic), or is an electronic title that cannot be accessed. The seller completes Part A. Parts B and C are for licensed dealers only.