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, 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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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, when the 10-year exemption applies, 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
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.
- Tick exactly one certification box: actual mileage, exceeds mechanical limits (a rolled-over five-digit odometer), or not actual mileage (a known discrepancy).
- 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.
- Keep every signed document for five years or more.
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 — 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 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.