34 Tex. Admin. Code § 3.65 - Motor Vehicles Purchased Through Another Name

(a) If a vehicle is titled in the name of someone other than the buyer of the vehicle, the motor vehicle sales and use tax is due. If title to a motor vehicle that is titled in someone other than the buyer's name is subsequently transferred to the buyer, the following taxes apply.

(1) If the vehicle is transferred to the buyer and no consideration is given by the buyer, the $10 gift tax is due on this motor vehicle transfer.

(2) If the vehicle is transferred to the buyer and the buyer gives a consideration, the motor vehicle sales or use tax is due and shall be based on the consideration given.

(b) The motor vehicle sales or use tax is due when a motor vehicle is titled in the name of the parent or guardian of the vehicle buyer who has not reached the age of 21. The subsequent transfer of the title to this vehicle to the buyer is not a taxable transaction.