Tex. Transp. Code Section 503.024
Exclusions for Dealer


(a)

A person is not required to obtain a dealer general distinguishing number if the person:

(1)

sells or offers to sell during a calendar year fewer than five vehicles of the same type that are owned and registered in that person’s name; or

(2)

is a federal, state, or local governmental agency.

(b)

For the purposes of Section 503.021 (Dealer General Distinguishing Number), a person is not engaging in business as a dealer by:

(1)

selling or offering to sell, if the sale or offer is not made to avoid a requirement of this chapter, a vehicle the person acquired for personal or business use to:

(A)

a person other than a retail buyer if not sold or offered through a licensed auctioneer; or

(B)

any person if the sale or offer is made through a licensed auctioneer;

(2)

selling, in a manner provided by law for the forced sale of vehicles, a vehicle in which the person holds a security interest;

(3)

acting under a court order as a receiver, trustee, administrator, executor, guardian, or other appointed person;

(4)

selling a vehicle the person acquired from the vehicle’s owner as a result of paying an insurance claim if the person is an insurance company;

(5)

selling an antique passenger car or truck that is at least 25 years of age; or

(6)

selling a special interest vehicle that is at least 12 years of age if the person is a collector.

(c)

For the purposes of Section 503.021 (Dealer General Distinguishing Number), a domiciliary of another state who holds a dealer license and bond, if applicable, issued by the other state is not engaging in business as a dealer by:

(1)

buying a vehicle from, selling a vehicle to, or exchanging a vehicle with a person who:

(A)

holds a general distinguishing number issued by the department, if the transaction is not intended to avoid a requirement of this chapter; or

(B)

is a domiciliary of another state who holds a dealer license and bond, if applicable, issued by the other state and the transaction is not intended to avoid a requirement of this chapter; or

(2)

buying, selling, including by consignment, or exchanging at a public auction:

(A)

an antique vehicle that is at least 25 years of age; or

(B)

a special interest vehicle that:
(i)
is at least 12 years of age; or
(ii)
has been the subject of a retail sale.

(d)

For the purposes of Section 503.021 (Dealer General Distinguishing Number), a licensed auctioneer is not engaging in business as a dealer by, as a bid caller, selling or offering to sell property, including a business that holds the title to any number of vehicles, to the highest bidder at a bona fide auction if:

(1)

legal or equitable title does not pass to the auctioneer;

(2)

the auction is not held to avoid a requirement of this chapter; and

(3)

for an auction of vehicles owned legally or equitably by a person who holds a general distinguishing number, the auction is conducted at the location for which the general distinguishing number was issued.

(e)

In this section, “special interest vehicle” has the meaning assigned by Section 683.077 (Inapplicability of Subchapter)(b).
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 959 (S.B. 1952), Sec. 1, eff. September 1, 2017.
Acts 2017, 85th Leg., R.S., Ch. 1067 (H.B. 3215), Sec. 1, eff. September 1, 2017.

Source: Section 503.024 — Exclusions for Dealer, https://statutes.­capitol.­texas.­gov/Docs/TN/htm/TN.­503.­htm#503.­024 (accessed Apr. 29, 2024).

503.001
Definitions
503.002
Rules
503.003
Display or Sale of Nonmotorized Vehicle or Trailer
503.004
Buying, Selling, Exchanging, or Manufacturing Vehicles
503.005
Notice of Sale or Transfer
503.006
Notice of Change of Address
503.007
Fees for General Distinguishing Number
503.008
Fees for License Plates
503.009
Procedure for Certain Contested Cases
503.010
Term of General Distinguishing Number, License, or License Plate
503.011
Prorating Fees
503.012
Collected Money
503.013
Dealer Transfer of Certain Assembled Vehicles Prohibited
503.021
Dealer General Distinguishing Number
503.022
Wholesale Motor Vehicle Auction General Distinguishing Number
503.023
Drive-a-way Operator License
503.024
Exclusions for Dealer
503.025
Wholesale Motor Vehicle Auction Exception
503.026
Requirement for Each Type of Dealer Vehicle
503.027
Requirements Relating to Dealer Location
503.028
Requirements Relating to Wholesale Motor Vehicle Auction Location
503.029
Application for Dealer General Distinguishing Number
503.030
Application for Wholesale Motor Vehicle Auction General Distinguishing Number
503.031
Application for Drive-a-way In-transit License
503.032
Established and Permanent Place of Business
503.033
Security Requirement
503.034
Issuance and Renewal or Denial of Dealer or Wholesale Motor Vehicle Auction General Distinguishing Number
503.035
Issuance and Renewal of Drive-a-way In-transit License
503.036
Reassignment of Evidence of Ownership
503.037
Rights of Wholesale Motor Vehicle Auction
503.038
Cancellation of General Distinguishing Number
503.039
Public Motor Vehicle Auctions
503.040
Sales of Certain Used Motor Vehicles Constitute Private Disposition
503.061
Dealer’s License Plates
503.062
Dealer’s Temporary Tags
503.063
Buyer’s Temporary Tags
503.064
Manufacturer’s License Plates
503.065
Buyer’s Out-of-state License Plates
503.066
Application for Dealer’s or Manufacturer’s License Plates
503.067
Unauthorized Reproduction, Purchase, Use, or Sale of Temporary Tags
503.068
Limitation on Use of Dealer’s License Plates and Tags
503.069
Display of License Plates and Tags
503.070
Removal of Out-of-state License Plates
503.071
Notice of Driving or Towing from out of State
503.091
Enforcement Agreement
503.092
Action to Enforce Chapter
503.093
Action to Enforce Subchapter
503.094
Criminal Penalty
503.095
Civil Penalty
503.096
Towing of Vehicles
503.0295
Independent Mobility Motor Vehicle Dealers
503.0296
Independent Motor Vehicle Dealer Education and Training Requirement
503.0615
Personalized Prestige Dealer’s License Plates
503.0618
Converter’s License Plates
503.0625
Converter’s Temporary Tags
503.0626
Dealer’s and Converter’s Temporary Tag Database
503.0631
Buyer’s Temporary Tag Database
503.0632
Department Regulation of Temporary Tags and Access to Temporary Tag Databases
503.0633
Department Regulation of Dealer-issued License Plates and Access to Database of Dealer-issued License Plates
503.0671
Unauthorized Use or Distribution of Dealer-issued License Plate

Accessed:
Apr. 29, 2024

§ 503.024’s source at texas​.gov