Current through Reg. 49, No. 38; September 20, 2024
(a) A dealer, a governmental agency, or a
converter is required to have internet access to connect to the temporary tag
databases maintained by the department.
(b) Except as provided by §
215.157 of this title (relating to
Advance Numbers, Preprinted Internet-down Temporary Tags), before a temporary
tag may be issued and displayed on a vehicle, a dealer, a governmental agency,
or converter must:
(1) enter in the temporary
tag database true and accurate information about the vehicle, dealer,
converter, or buyer, as appropriate; and
(2) obtain a specific number for the
temporary tag.
(c) The
department will inform each dealer annually of the maximum number of buyer's
temporary tags the dealer is authorized to issue during the calendar year under
Transportation Code §
503.0632. The
number of buyer's temporary tags allocated to each dealer by the department
will be determined based on the following formula:
(1) Sales data determined from the
department's systems from the previous three fiscal years. A dealer's base
number will contain the sum of:
(A) the
greater number of:
(i) in-state buyer's
temporary tags issued in one fiscal year during the previous three fiscal
years; or
(ii) title transactions
processed through the Registration and Title System in one fiscal year during
the previous three fiscal years; but
(iii) the amount will be limited to an amount
that is not more than two times the number of title transactions identified in
subparagraph (ii) of this paragraph; and
(B) the addition of the greatest number of
out-of-state buyer's temporary tags issued in one fiscal year during the
previous three fiscal years;
(2) the total value of paragraph (1) of this
subsection will be increased by a multiplier based on the dealer's time in
operation giving a 10 percent increase in tags for each year the dealer has
been in operation up to 10 years;
(3) the total value of paragraph (2) of this
subsection will be increased by a multiplier that is the greater of:
(A) the dealer's actual growth rate
percentage identified from the preceding two fiscal years, calculated by the
growth of the number of title transactions processed through the Registration
and Title System plus the growth of the number of out-of-state buyer's
temporary tags issued, except that it may not exceed 200 percent; or
(B) the statewide actual growth rate
percentage identified from the preceding two fiscal years, calculated by the
growth of the number of title transactions processed through the Registration
and Title System plus the growth of the number of out-of-state buyer's
temporary tags issued, not less than zero, to determine the buyer's temporary
tag allotment; and
(4)
the department may increase the determined allotment of buyer's temporary tags
for dealers in the state, in a geographic or population area, or in a county,
based on:
(A) changes in the market;
(B) temporary conditions that may affect
sales; and
(C) any other
information the department considers relevant.
(d) The department will inform each dealer
annually of the maximum number of agent temporary tags and vehicle specific
temporary tags the dealer is authorized to issue during the calendar year under
Transportation Code §
503.0632. The
number of agent temporary tags and vehicle specific temporary tags allocated to
each dealer by the department, for each tag type, will be determined based on
the following formula:
(1) dealer temporary
tag data for agent temporary tags and vehicle specific temporary tags
determined from the department's systems from the previous three fiscal years.
A dealer's base number will contain the maximum number of dealer temporary tags
issued during the previous three fiscal years;
(2) the total value of paragraph (1) of this
subsection will be increased by a multiplier based on the dealer's time in
operation giving a 10 percent increase in tags for each year the dealer has
been in operation up to 10 years; and
(3) the total value of paragraph (2) of this
subsection will be increased by a multiplier that is the greater of:
(A) the dealer's actual growth rate
percentage identified from the preceding two fiscal years, calculated by the
growth of the number of dealer's temporary tags issued, except that it may not
exceed 200 percent; or
(B) the
statewide actual growth rate percentage identified from the preceding two
fiscal years, calculated by the growth of the number of dealer's temporary tags
issued, not less than zero, to determine the dealer's temporary tag allotment;
and
(4) the department
may increase a dealer's allotment of agent temporary tags and vehicle specific
temporary tags for dealers in the state, in a geographic or population area, or
in a county, based on:
(A) changes in the
market;
(B) temporary conditions
that may affect sales; and
(C) any
other information the department considers relevant.
(e) The department will inform
each converter annually of the maximum number of temporary tags the converter
is authorized to issue during the calendar year under Transportation Code
§
503.0632. The
number of temporary tags allocated to each converter by the department will be
determined based on the following formula:
(1) converter temporary tag data determined
from the department's systems from the previous three fiscal years. A
converter's base number will contain the maximum number of converter temporary
tags issued during the previous three fiscal years;
(2) the total value of paragraph (1) of this
subsection will be increased by a multiplier based on the converter's time in
operation giving a 10 percent increase in tags for each year the dealer has
been in operation up to 10 years; and
(3) the total value of paragraph (2) of this
subsection will be increased by a multiplier that is the greater of:
(A) the converter's actual growth rate
percentage identified from the preceding two fiscal years, calculated by the
growth of the number of converter's temporary tags issued, except that it may
not exceed 200 percent; or
(B) the
statewide actual growth rate percentage identified from the preceding two
fiscal years, calculated by the growth of the number of converter's temporary
tags issued, not less than zero, to determine the converter's temporary tag
allotment;
(4) the
department may increase a converter's allotment of converter temporary tags for
converters in the state, in a geographic or population area, or in a county,
based on:
(A) changes in the market;
(B) temporary conditions that may affect
sales; and
(C) any other
information the department considers relevant.
(f) A dealer or converter that is licensed
after the commencement of a calendar year shall be authorized to issue the
number of temporary tags allotted in this subsection prorated on all or part of
the remaining months until the commencement of the calendar year after the
dealer's or converter's initial license expires. The initial allocations shall
be as determined by the department in granting the license, but not more than:
(1) 1,000 temporary tags for a franchised
dealer per each tag type, buyer's temporary tags, agent temporary tags, and
vehicle specific tags, unless:
(A) the dealer
provides credible information indicating that a greater number of tags is
warranted based on anticipated sales, and growth, to include new and used
vehicle sales, including information from the manufacturer or distributor, or
as otherwise provided in this section; and
(B) if more than 1,000 temporary tags are
determined to be needed based on anticipated sales and growth, the total number
of temporary tags needed, including the 1,000, will be doubled;
(2) 300 temporary tags for a
nonfranchised dealer per each tag type, buyer's temporary tags, agent temporary
tags, and vehicle specific tags, unless the dealer provides credible
information indicating that a greater number of tags is warranted based on
anticipated sales as otherwise provided in this section; and
(3) A converter will be allocated 600
temporary tags, unless the converter provides credible information indicating
that a greater number of tags is warranted based on anticipated sales,
including information from the manufacturer or distributor, or as otherwise
provided in this section.
(g) An existing dealer or converter that is:
(1) moving its operations from one location
to a different location will continue with its allotment of temporary tags and
not be allocated temporary tags under subsection (f) of this section;
(2) opening an additional location will
receive a maximum allotment of temporary tags based on the greater of the
allotment provided to existing locations, including franchised dealers opening
additional locations for different line makes, or the amount under subsection
(f) of this section;
(3) purchased
as a buy-sell ownership agreement will receive the maximum allotment of
temporary tags provided to the location being purchased and not be allocated
temporary tags under subsection (f) of this section; and
(4) inherited by will or laws of descent will
receive the maximum allotment of temporary tags provided to the location being
inherited and not be allocated temporary tags under subsection (f) of this
section.
(h) A new
dealer or converter may also provide credible information supporting a request
for additional temporary tags to the amount allocated under subsection (f) of
this section based on:
(1) franchised dealer,
manufacturer, or distributor sales expectations;
(2) a change in license required by death or
retirement, except as provided in subsection (g) of this section;
(3) prior year's sales by a dealership moving
into the state; or
(4) other
similar change of location or ownership that indicates some continuity in
existing operations.
(i)
After using 50 percent of the allotted maximum number of temporary tags, a
dealer or converter may request an increase in the number of temporary tags by
submitting a request in the department's eLICENSING system.
(1) The dealer or converter must provide
information demonstrating the need for additional temporary tags results from
business operations, including anticipated needs, as required by
§503.0632(c). Information may include documentation of sales and tax
reports filed as required by law, information of anticipated need, or other
information of the factors listed in §503.0632(b).
(2) The department shall consider the
information presented and may consider information not presented that may weigh
for or against granting the request that the department in its sole discretion
determines to be relevant in making its determination. Other relevant
information may include information of the factors listed in §503.0632(b),
the timing of the request, and the applicant's temporary tag
activity.
(3) The department may
allocate a lesser or greater number of additional temporary tags than the
amount requested. Allocation of a lesser or greater number of additional
temporary tags is not a denial of the request. Allocation of additional
temporary tags under this paragraph does not limit the dealer's or converter's
ability to submit additional requests for more temporary tags.
(4) If a request is denied, the denial will
be sent to the dealer or converter by email to the requestor's email address.
(A) A dealer or converter may appeal the
denial to the Motor Vehicle Division Director.
(B) The appeal must be requested though the
eLICENSING system within 15 days of the date the department emailed the denial
to the dealer or converter.
(C) The
appeal may discuss information provided in the request but may not include
additional information.
(D) The
Motor Vehicle Division Director will review the submission and any additional
statements concerning the information submitted in the original request and
render an opinion within 15 days of receiving the appeal. The Motor Vehicle
Division Director may decide to deny the request and issue no additional tags
or award an amount of additional temporary tags that is lesser, equal to, or
greater than the request.
(E) The
requesting dealer or converter will be notified as follows:
(i) If the Motor Vehicle Division Director
decides to deny the appeal, the department will contact the license holder by
email regarding the decision and options to submit a new request with
additional relevant credible supporting documentation or to pursue a claim in
district court; or
(ii) If the
Motor Vehicle Division Director awards an amount of additional temporary tags
that is lesser, equal to, or greater than the request, the additional temporary
tags will be added to the dealer's or converter's account and the license
holder will be contacted by email regarding the decision, informed that the
request has not been denied, and options to submit a new request.
(5) The Motor Vehicle
Division Director's decision on appeal is final.
(6) Once a denial is final, a dealer or
converter may only submit a subsequent request for additional temporary tags
during that calendar year if the dealer or converter is able to provide
additional information not considered in a prior request.
(j) A change in the allotment under
subsection (i) of this section does not create a dealer or converter base for
subsequent year calculations.
(k)
The department may at any time initiate an enforcement action against a dealer
or converter if temporary tag usage suggests that misuse or fraud has occurred
as described in Transportation Code §§
503.038,
503.0632(f),
or
503.067.
(l) Unused temporary tag allotments from a
calendar year do not roll over to subsequent years.
