Did installing a remote electric rear-hatch assist qualify a vehicle for Texas's orthopedically handicapped exemption?

Plain-English summary

The Texas Comptroller denied the motor vehicle sales-tax exemption for a remote electric device that helped the purchaser's wife open the rear hatch.

Section 152.086 required a vehicle modified for operation by or transportation of an orthopedically handicapped person and used primarily for that person's transportation. The letter said the spouse's condition did not prevent her from operating the vehicle or require a modification to enter it.

Rule 3.84 identified qualifying driving modifications to braking, acceleration, or steering systems, or a wheelchair lift, hoist, or ramp enabling entry. The rear-hatch opener did not fit those categories.

What this means for you

Mobility vehicle customers and dealers

A device that makes one vehicle feature easier to use did not qualify on these facts. The modification had to address vehicle operation or necessary entry for transportation.

Tax professionals

Both the person's impairment and the particular modification mattered. A physician's recommendation alone did not place the device within the statutory and rule definitions.

Common questions

Q: Did limited above-shoulder mobility establish the exemption?

A: Not here. It did not prevent vehicle operation or require special modification for entry.

Q: What modifications did the cited rule identify?

A: Altered brake, acceleration, or steering systems, and wheelchair lifts, hoists, or ramps that allow entry.

Citations and references

• Tex. Tax Code § 152.086
• Rule 3.84(a)(2)(A)-(B)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/200104185L

Original ruling text

April 20, 2001

Dear **:

Thank you for your recent correspondence. You forwarded information to clarify
a phone conversation we had concerning the purchase of a motor vehicle and the
possible exemption from motor vehicle sales tax. Your wife has been treated by
the ** for a condition that limits her mobility and strength for
any activity above shoulder level. With this in mind, it was recommended by
her physician, any purchase of a vehicle that is equipped with doors above
shoulder level be modified to include a mechanical assistive device. You
recently purchased a motor vehicle and as recommended, have purchased a pulsar
electric entry hatch assist with remote to assist your wife to access the rear
of the vehicle. You ask if this is a qualifying modification for the
orthopedically handicapped exemption provided in Section 152.086 of the Tax
Code.

The exemption is available only if a vehicle has been or will be modified for
operation by or for the transportation of, an orthopedically handicapped
person; and is driven by or used primarily for the transportation of an
orthopedically handicapped person.

First, the Tax Code in defining an orthopedically handicapped person includes a
person who because of a physical impairment is unable to operate or reasonably
be transported in a motor vehicle that has not been specially modified. Your
wife's condition does not limit her ability to operate the vehicle nor does it
require the vehicle to be specially modified to enable her to enter the
vehicle.

Additionally, Rule 3.84 is very specific concerning the types of modifications
which will qualify for exemption. Subsections (a)(2)(A) and (B) of the Rule
define a "motor vehicle modified for operation by an orthopedically handicapped
person." In order to qualify under subsection (a)(2)(A), the vehicle must be
modified by altering brake, acceleration, or steering systems in ways that
facilitate operation of the vehicle by an orthopedically handicapped driver or
(a)(2)(B) of the Rule requires that the vehicle be modified by installing a
wheelchair lift, hoist, or ramp to allow an orthopedically handicapped driver
to enter the vehicle.

The installation of the pulsar electric entry hatch with remote to assist your
wife in opening the rear hatch of the vehicle is not a qualifying modification
under this Section of the Tax Code.

I have enclosed Rule 3.84. The Rule is available on-line at:

This opinion is based on the information presented. If there are additional or
different facts, the opinion could change. If you have any questions, please
do not hesitate to call me toll free at 1-800-531-5441, extension 3-2995. The
direct number is 512/463-2995.

Sincerely,

Irene Cage
Tax Policy Division