State sales tax on total loss vehicle

by Bill
(Houston, TX)

Is the insurance company required to pay the 6.25% state sales tax as part of the claim?

If so, were is it in the law or case law ruling (please give specific law suit).
Also, if the insured wants to keep the salvage, is he entitled to sale tax on the difference between the ACV and Salvage value.


Answer:


Hello,

Yes, when you had your vehicle, you had already paid all taxes (sales taxes) for that car. Therefore this is a new expense.

You are not likely to be entitled to the difference in tax as the total loss settlement is supposed to compensate for that value already.

As far as case law, we charge $150 per case search in Texas.

Let us know if you are interested.

Good Luck,
Auto Insurance Claim Advice