Pub. 55 2014-2015 Issue 2

28 T he State of Texas will stop issuing inspection stickers and transition to “Two Steps, One Sticker” next year. Beginning March 1, 2015, vehicles will no longer be issued an inspection sticker, and the registration sticker will serve as proof of inspection and registration. In order to keep the dates aligned, the following year motorists will have a convenient 90 day window to complete both their inspection and registration. There are two general steps for dealers under “Two Steps, One Sticker”, which are not a significant departure from their cur- rent practices. The first step is inspection. Dealers are still required to ensure vehicles have a current inspection. Once a vehicle has been inspected, the results will be entered into the state’s inspection database. The second step is registration. When a dealer submits the buyer’s title and registration documentation to the county, the vehicle’s inspection status will be electronically veri- fied and the buyer will be issued a registra- tion sticker to serve as proof of inspection and registration.The date on the registration sticker is now the expiration date for both inspection and registration. The First Year Transitioning to “Two Steps, One Sticker” requires every vehicle’s inspection and registration dates to expire at the same time. In order to do this, during the first year, all motorists will be allowed to renew their vehicle registration if the vehicle has a current, passing inspection the day they renew. A similar exception will be granted to dealers during the first year. From March 1, 2015 to February 29, 2016, all vehicles with a current, passing inspection on the date of sale can be titled and registered without obtaining a new inspection. Essentially, there is no change for the dealer community during the first year of “Two Steps, One Sticker”. The sec- ond year is when dealers will experience a change, but only in terms of used vehicle sales. “Two Steps, One Sticker” does not change the title and registration process for new vehicle sales. All that is required to register a new vehicle on behalf of a buyer is proof of current, passing inspection. Extra Time on Used Vehicle Sales Used vehicles are also required to have a current, passing inspection for purposes of initial registration. However, unlike new vehicles, starting March 1, 2016, it will matter when that inspection occurred. Un- der “Two Steps, One Sticker” used vehicles which have a current, passing inspection may be sold without obtaining a new in- spection, if the inspection occurred within 180 days of the date of sale. If, on the date of sale, it has been more than 180 days since the vehicle was last inspected, the vehicle must be inspected before registration and title paperwork is submitted to the county tax assessor-collector’s office. Prior to March 1, 2015, a tool will be made available on www.twosteps onesticker.com, which will allow dealers to check the date of last inspection. Dealers will simply enter the VIN into the look-up tool and it will return valuable information about the type of inspection performed, the date of last inspection, and any associ- ated fees. Test on Resale “Two Steps, One Sticker” does not change requirements related to emissions test on resale. If a vehicle is being registered in an emissions county and previously re- ceived a safety-only inspection, an emissions test must be performed prior to registration. The vehicle inspection report (VIR) will continue to serve as proof to the county that a vehicle has passed an emissions test in the county in which it is to be registered. It is important to keep in mind that model year 1996 and newer used vehicles with 50,000 or more miles that are sold in emissions coun- ties must have passed an inspection within 90 days of the title transfer. Fee Collection On March 1, 2015, vehicle inspection stations will no longer be responsible for collecting the state’s portion of the inspection fee. Instead, for vehicles inspected on or after March 1, 2015, the state’s portion of the fee will be collected by the county tax assessor- collector’s office at the time of registration. Learn More If you haven’t already done so, you are en-couraged to check out www.twosteps onesticker.com. Here you will find ad- ditional valuable information on how “Two Steps, One Sticker” will impact your dealership. It’s important to familiarize yourself with the new program now be- cause before you know it, it’ll be time to kick up your heels and do the new Texas Two Step and TxDMV wants to ensure that you are ready.  “Two Steps, One Sticker”: Kick Up Your Heels for the New Texas Two Step