Pub. 54 2013-2014 Issue 4

31 2014 SUMMER T he ID Requirements for purchasing vehicles in Texas were originally established September 3, 2012, and were amended in September 2013. InMay 2014, the TxDMVmade a few changes re- lated to the documents dealers are required to submit to tax offices. As of May 16, dealers licensed under Transportation Code, Chapter 503 or Occupations Code, Chapter 2301 are now exempt from submitting authority to sign on behalf of an entity to the tax office. In addition, dealers are not required to submit a government issued photo ID or proof of authority to sign when the dealer is making title assignment with a secure power of attorney (POA). An original, secure POA must still be submitted to the tax office. Here are some of the Frequently Asked Questions (FAQs) we have received about these changes to the dealer ID Require- ments. Q. Can a copy of a secured Power of Attorney (POA), Form VTR- 271-A be used? A. No, when using a Power of Attorney for Transfer of Ownership to a Motor Vehicle, Form VTR-271-A, the original must be submitted to the tax office. Q. When using an unsecured POA, can a copy be used? A. Yes, when using an unsecured POA, such as a Power of Attorney to Transfer Motor Vehicle, Form VTR-271, a copy can be used. However, this type of POA cannot be used to complete a title assignment when the vehicle is not ex- empt from odometer disclosure. Q. Do we have to keep the original POA, or can we keep a scanned electronic version on file? A. It is acceptable to keep a scanned copy of a POA in your files. Q. How do the new ID requirements affect transactions that include a POA? A. The procedure for applying for a title on behalf of another person or com- pany using a POA has not changed. The government issued photo ID of the person signing as POA is neces- sary, alongwith the government issued photo ID of the person assigning POA. If the POA is assigned by an entity or assigned to an entity, the employee or authorized agent must present an original or a photocopy of a letter of authorization, printed business card, or employee ID that matches the name of the authorized agent’s or employee’s government issued photo ID and the POA. Q. Are the ID requirements the same in the case of INC, LLC, and LLP’s? A. Yes, the employee’s or authorized agent’s government issued photo ID must be accompanied by an original or photocopy of a letter of authorization, printed company business card, or employee ID. The name on the govern- ment issued ID has to match the name on the letter of authorization, printed business card, or employee ID. Q. Should a dealer submit a copy of the applicant’s ID and authority to assign with a transaction? A. No, the dealer is not required to submit the owner’s ID or authority to assign, but must retain a copy of both in the purchase and sales records. Q. When assigning a title with a secure POA, Power of Attorney for Transfer of Ownership to a Motor Vehicle, Form VTR- 271-A, do I have to submit my ID and proof of authority to sign to the tax office? A. No. An agent completing a title assignment on behalf of a dealer is exempt from submitting their govern- ment issued photo ID and proof of authority to sign to the tax office. Q. For a business entity, can we use the FEIN number as a form of identification? A. No, this is not an acceptable form of ID. While the employee or authorized agent must continue to provide an ac- ceptable government issued photo ID and authority to sign on behalf of the entity, only the FEIN will be captured on the title application and entered into the Registration and Title System (RTS) instead of the employee’s or authorized agent’s government issued photo ID number. This will be effective upon the release of RTS 7.5.0 (planned for August 2014). Texas Department of Motor Vehicles (TxDMV) Changes Some Identification (ID) Requirements The Administrative Rule that revised the exist- ing language is 217.3