Free Texas Odometer Disclosure Bill of Sale
The federal Truth in Mileage Act (49 U.S.C. § 32705) requires a written odometer disclosure on every qualifying vehicle transfer. Vehicles 25 or more model years old (2001 and older as of 2026), those with a GVWR over 16,000 lbs, and new vehicles before first retail sale are exempt. In Texas, Form 130-U (Application for Texas Title and/or Registration) includes a built-in odometer disclosure section; the 6.25% motor vehicle sales tax is calculated using the Standard Presumptive Value (SPV) — the higher of the stated purchase price or the SPV based on the vehicle's mileage and condition.
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Texas Odometer Disclosure Bill of Sale — What You Need to Know
Primary Form
Standard bill of sale
Agency
TxDMV
Texas Department of Motor Vehicles
Primary ID Field
VIN
Sales Tax
0.0625%
Title Required
Yes
Inspection
Not required
Texas Odometer Disclosure Sale — Step-by-Step Checklist
- Obtain Texas Form 130-U (Application for Texas Title and/or Registration).
- Complete the built-in odometer disclosure section on Form 130-U with the exact mileage at the time of sale.
- Select the correct certification: 'Actual mileage,' 'Exceeds mechanical limits (rollover),' or 'Not actual mileage (discrepancy known).'
- Both seller and buyer must sign and date the 130-U odometer section.
- 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 higher of the sale price or SPV.
- Retain copies of all documents for at least five years.
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 vehicle's book value rather than the stated price; underreporting mileage to inflate SPV or reduce tax is detectable and 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.
- Criminal penalties under TIMA reach $10,000 per violation and up to three years imprisonment; civil liability is treble actual damages with a $1,500 statutory minimum.
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 contains a dedicated odometer disclosure section that both seller and buyer must complete and sign. 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 higher of the actual purchase price or the SPV — a book value derived from similar vehicle sales. This prevents tax avoidance through artificially low declared prices. The odometer reading influences the SPV calculation, so accurate mileage is critical.
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. The federal 25-year rule exempts vehicles with a model year of 2001 or earlier as of 2026 from TIMA's odometer disclosure requirement.
What penalties apply to odometer fraud in Texas?
Under federal TIMA, criminal penalties include fines up to $10,000 and imprisonment up to three years per violation. Civil liability allows the buyer to recover treble actual damages, with a $1,500 statutory minimum per violation.