On April 22, 2012, about 1130 central daylight time, a Rans S-6S Coyote II, N137AB, impacted terrain during takeoff at New Braunfels Municipal Airport (KBAZ), New Braunfels, Texas. The pilot and passenger were not injured. The airplane was substantially damaged. The airplane was registered to a private individual and operated by the pilot under the provisions of 14 Code of Federal Regulations (CFR) Part 91 as a personal flight. Visual meteorological conditions (VMC) prevailed at the time of the accident, and no flight plan had been filed. The flight originating, and was destined for Kitty Hawk Airport (K0T7), Allen, Texas. The pilot was issued a student pilot certificate in 2000. He applied for but was denied a medical certificate in 2007. The airplane did not have a current Certificate of Airworthiness. The pilot told a Federal Aviation Administration (FAA) inspector that there was no intention for flight. However, according to an e-mail from the FAA inspector who listened to the KBAZ control tower tape recording, the pilot reported that he was ready to taxi. The controller gave him taxi instructions to (the active) runway 17, but was told to hold short of runway 13. The controller also gave the pilot the altimeter setting and wind information. Shortly thereafter, the pilot told the controller that he was holding short of runway 13. The controller instructed him to cross runway, 13 and that he was cleared for takeoff on runway 17. The pilot did not acknowedge this clearance. At no time did the pilot request a high speed taxi. The controller observed the airplane proceed down the runway, become airborne momentarily, then impact terrain.