Before TxDMV says yes: the city and county approvals a Texas car lot needs
Last verified: November 9, 2026. Every rule links to its official source.
A Texas dealer license (GDN) application must include a certificate of occupancy, certificate of compliance or other official city document confirming the site meets zoning and occupancy rules for a vehicle business. Get that answer before you sign a lease. Houston adds its own dealer license after the GDN, and the county offices follow within 30 days.
The short version
| What | The rule | Source |
|---|---|---|
| Proof TxDMV wants | A certificate of occupancy, certificate of compliance or other official documentation that the site meets municipal rules for a vehicle business | 43 TAC 215.133 |
| Name and use | Issued in the dealer’s or business’s name, authorizing motor vehicle sales | TxDMV Form LG100 |
| When you need a new one | When the building is altered or remodeled, or its use changes | 43 TAC 215.140 |
| Houston | A city Motor Vehicle Dealer license after the GDN: $400.36, then $376.10 a year | Houston Permitting Center |
| County offices | Tax office and appraisal district steps within 30 days of the license’s active date | TxDMV Form LP801 |
Local fees below are as posted on November 9, 2026; cities reset them each fiscal year.
Why does the city come before TxDMV?
Because TxDMV wants the city’s paper inside your application, in your name or the business’s and authorizing motor vehicle sales. You also sign a notarized affidavit that the premises meet TxDMV’s rule and will stay that way. The duty continues after licensing: a remodel or a change of use needs a new certificate or document.
So the lease comes last. TxDMV accepts a two-year lease, or one year with an option to renew for a second. Sign only after the city confirms vehicle sales are allowed at the address. The premises rule itself is in the step-by-step GDN guide.
What should you ask the city before you sign a lease?
Get these seven answers before you sign.
- Is the parcel zoned for vehicle sales? San Antonio sells a zoning verification letter for $402.50; Fort Worth charges $59.06 for one in 10 days or $119 in 3.
- Do I need a new certificate of occupancy? TxDMV requires a new document when the use changes, and Dallas also requires one for a change of tenant.
- Which inspections come with it? San Antonio lists building, electrical, mechanical, plumbing and fire.
- Do I need a sign permit? Houston requires one before a sign goes up, and Austin requires one for outdoor signs. TxDMV makes the sign’s compliance with city ordinances your responsibility.
- What parking and paving rules apply? Dallas requires one space per 500 square feet of floor and site area, excluding parking area, for vehicle sales. We did not confirm them for the other four cities.
- Is there a city dealer license? Houston has one. In Dallas, San Antonio, Austin and Fort Worth we found none; confirm with the city.
- Can cars sit near the street? TxDMV bars a display area on a public easement, right-of-way or driveway without the governing body’s written consent.
What does each big Texas city require?
Houston has no zoning but has its own dealer license. The other four zone vehicle sales into certain districts.
Houston
- Zoning. None: the city “does not have zoning” (Houston Planning). Private deed restrictions can still bar a car lot; the city publishes a Deed Restriction Compliance Affidavit.
- Certificate of occupancy. Houston Public Works, Occupancy Inspections, 1002 Washington Ave., 832.394.8880. For an existing building without one, file Form CE-1045A; the fee runs $94.00 to $537.12. The report comes within one week, and you then have 180 days for permits and corrections (Occupancy Inspections).
- City dealer license. The Houston Police Department Auto Dealers Detail issues a Motor Vehicle Dealer license: $400.36, renewed yearly at $376.10. It requires the GDN, a certificate of occupancy or Life Safety Inspection and a background check, and the Automotive Board reviews new applications at a public hearing. A salesman license ($84.93) is for people selling there.
- Sign permit. Required before a sign goes up; most fees depend on size (Sign Administration).
Dallas
- Zoning. “Vehicle display, sales, and service” is allowed by right in RR, CS and industrial districts, where the code adds “RAR required”, and only by SUP in central area districts (Dallas Development Code 51A-4.210). The abbreviations are the code’s. Each vehicle displayed or sold may weigh no more than 6,000 pounds.
- Certificate of occupancy. Apply through DallasNow. A first use, change of use, change of tenant or change in floor area needs a new certificate: $375, or $500 for a temporary one (Dallas: certificate of occupancy). The city says processing times differ with demand.
- City dealer license. We found no separate city dealer license; confirm with the city. We did not confirm Dallas’s sign permit steps.
San Antonio
- Certificate of occupancy. Required “for all businesses in the City of San Antonio” (Development Services), at the One Stop center, 1901 S. Alamo St., 210-207-1111. The FY 2027 fee schedule lists $230 with no construction, $575 for a temporary certificate and $57.50 for a sign base permit, with 4% technology and 4% development services surcharges on most fees.
- Zoning. The city’s examples list auto sales in C-3 (general commercial) and L (light industrial); confirm the parcel with Zoning. A verification letter arrives within 10 working days.
- City dealer license. We found no separate city dealer license; confirm with the city.
Austin
- Zoning. The code’s “Automotive Sales” use covers new and used car dealerships (Land Development Code 25-2-4). The use table permits it in GR (community commercial), CS (general commercial services), CS-1 (commercial-liquor sales), CH (commercial highway services), IP (industrial park), MI (major industry) and LI (limited industrial services). It needs a conditional use permit in L (lake commercial), CBD (central business) and DMU (downtown mixed use), and is not permitted in most other base districts. Other zoning provisions can modify the table, so confirm the parcel with Austin Development Services.
- Certificate of occupancy. The city issues one after a successful final inspection for new construction or significant renovations (Austin: certificate of occupancy). A different use may require the Change of Use process, which may include a Site Plan Exemption and Building Plan Review; the city puts the typical review at about two weeks (small business permitting). If the last tenant also sold cars, ask whether you need an updated certificate.
- Sign permit. Required for outdoor signs, with some exemptions. Register an Outdoor Advertising Registration account, then apply through the AB+C Portal (Austin: sign permits).
- Fees, dealer license and office. The FY 2026-27 fee schedule took effect October 1, 2026; we did not confirm the amounts. We found no separate city dealer license; confirm with the city. Austin Development Services is at 6310 Wilhelmina Delco Dr., 512-978-4000 (contact).
Fort Worth
- Certificate of occupancy. “Any building used or occupied in Fort Worth must have a Certificate of Occupancy.” Apply at Development Services, City Hall, 100 Fort Worth Trail, or in Accela Citizen Access. The same type of business as the last tenant needs an Ordinance Inspection Permit; a different type needs a Change of Use permit. First comments arrive within 7 working days (change of use packet).
- Fees. The fee schedule effective October 1, 2026 lists $94.50 for a change of occupancy permit, $66.15 per inspector for an ordinance inspection, a $33.08 application fee and a $16.87 technology fee. A sign permit is $38.98 plus charges for area, height and electrical parts.
- Zoning. Vehicle sales are generally allowed from the FR (general commercial restricted) district upward (zoning district summary); confirm with a zoning verification letter.
- City dealer license. We found no separate city dealer license; confirm with the city.
What if the lot is outside city limits?
TxDMV’s rule speaks of compliance with municipal ordinances, and we did not confirm what TxDMV accepts for a site outside any city, or which county permits apply there. Ask TxDMV licensing at 1 (888) 368-4689 and the county before you sign. The premises rules apply in full either way. A GDN covers extra locations only inside the same city’s territory (Transportation Code 503.027); a lot outside it needs its own GDN and bond (43 TAC 215.135).
Which county offices come after the license?
The county tax assessor-collector and the appraisal district open accounts with you. TxDMV’s startup sheet puts both within 30 days of the license’s active date.
- The tax assessor-collector takes title applications and sales tax, grants webDEALER access, and receives the monthly inventory tax statement with its prepayment by the 10th.
- The appraisal district receives the annual inventory tax declaration, due by February 1 (file by January 31 to be safe). A new dealer files its first within 30 days of starting business (Tax Code 23.121).
- The county clerk comes earlier: sole proprietors and general partnerships file their assumed name there before applying.
Most county tax offices call the inventory tax special inventory tax (SIT); TxDMV and the Comptroller’s motor vehicle guide say Vehicle Inventory Tax (VIT). See Texas Vehicle Inventory Tax.
| County | Tax assessor-collector | Appraisal district |
|---|---|---|
| Harris (Houston) | Harris County Tax Office, 1001 Preston St., 713-274-8000; webDEALER requires ACH and a separate login per user | Harris Central Appraisal District |
| Dallas | Dallas County Tax Office, 500 Elm Street, 214-653-7811; special inventory 214-653-4451 | Dallas Central Appraisal District |
| Bexar (San Antonio) | Bexar County Tax Assessor-Collector, 233 N. Pecos La Trinidad, 210-335-2251 | Bexar Appraisal District, 210-242-2432 |
| Travis (Austin) | Travis County Tax Office, 2433 Ridgepoint Dr.; special inventory by appointment, (512) 854-9473 | Travis Central Appraisal District |
| Tarrant (Fort Worth) | Tarrant County Tax Assessor-Collector, dealer appointments; special inventory 817-884-2869 | Tarrant Appraisal District, 817-284-0024 |
Ask the Dallas, Bexar and Tarrant tax offices how to enroll in webDEALER. Tarrant County’s page lists January 31 for the declaration; the statute says February 1, so January 31 satisfies both.
What trips people up
- Signing the lease first. TxDMV needs the city’s proof in the application, so a lease on a site the city will not approve for vehicle sales is money lost.
- Assuming the last tenant’s certificate covers you. Dallas requires a new certificate for a change of tenant, and Fort Worth requires an inspection permit even for the same type of business.
- A certificate in the wrong name. It must name you or the business and authorize motor vehicle sales.
- Forgetting Houston’s second license. It requires the GDN, renews yearly, and a renewal more than 30 days late becomes a new application.
- Ignoring deed restrictions in Houston. No zoning does not mean no restrictions on the property.
Frequently asked questions
Do I need a certificate of occupancy to get a Texas dealer license?
Yes, or an equivalent official document. TxDMV’s application rule requires a certificate of occupancy, certificate of compliance or other official documentation confirming the location complies with municipal ordinances, including zoning, for a vehicle business. It must be in the dealer’s or business’s name and authorize motor vehicle sales.
Does Houston require a city dealer license?
Yes. The Houston Police Department Auto Dealers Detail issues a Motor Vehicle Dealer license. It costs $400.36, renews yearly at $376.10, and requires the state GDN plus a certificate of occupancy or Life Safety Inspection. New applications go before the city’s Automotive Board at a public hearing.
Do Dallas, San Antonio, Austin or Fort Worth have a city dealer license?
We found no separate city dealer license in any of the four on the city pages we checked, and that is not proof that none exists. Confirm with the city’s development services office before you open. Each city still issues the certificate of occupancy TxDMV needs.
How long does a certificate of occupancy take?
It depends on the city. Houston sends an inspection report within one week, then allows 180 days for corrections. Fort Worth sends first comments within 7 working days. Austin puts its typical change of use review at about two weeks. Dallas says processing times differ with demand.
When do I set up the county accounts?
Right after the license. TxDMV’s startup sheet puts the county tax office and appraisal district steps within 30 days of the license’s active date. The tax assessor-collector handles titles, webDEALER access and the monthly inventory tax statement; the appraisal district takes the annual declaration.
Your next step
Get the one-page Texas dealer license checklist: every city, county and state office, form and fee in order, sent to your inbox. The whole path is in How to start a used car dealership in Texas.
Once the city has signed off and your application is in, you can set up your lot in LeftLane or book a LeftLane demo while TxDMV reviews it. Real people answer the phone at 512-222-9549 if you get stuck.
Sources
- TxDMV: Form LG100 and Form LP801
- 43 TAC 215.133, 215.135, 215.140 and 217.74; Transportation Code Chapter 503; Tax Code Chapter 23
- Houston: Planning, Occupancy Inspections, Motor Vehicle Dealer license and Sign Administration
- Dallas: Development Code 51A-4.210 and certificate of occupancy
- San Antonio: certificate of occupancy, zoning and fee schedule
- Austin: use table, certificate of occupancy, small business permitting, sign permits and fees
- Fort Worth: change of use packet, fee schedule and zoning district summary
- Counties: Harris, Dallas, Bexar, Travis and Tarrant
This guide is general information for dealers, not legal advice. Rules and fees change. Confirm with the agency or a licensed attorney in your state before you act.