TX HB4300

Exempts the gift of a motor vehicle from being classified as a taxable "sale" under Texas motor vehicle sales and use tax law, removing tax liability for vehicle gifts regardless of the relationship between parties

Exempts even exchanges of two motor vehicles (where no additional money changes hands) from motor vehicle sales and use taxes

Exempts private sales of used motor vehicles between individuals from being classified as "retail sales," provided the transaction occurs in Texas and the seller is not acting as a licensed motor vehicle dealer

Repeals several existing Tax Code provisions including Section 152.024 (even exchange tax), Section 152.025 (gift tax provisions), and related sections governing documentation requirements for gifts and exchanges

Takes effect September 1, 2025, with tax liability accrued before that date remaining subject to former law for collection and enforcement purposes