Was a charity exempt from Texas motor vehicle sales tax when purchasing a van to transport schoolchildren?

Plain-English summary

The Texas Comptroller's 2001 answer was no: although a charity might be exempt from other state taxes and fees, Chapter 152 contained no general charity exemption from motor vehicle sales tax for a van used to transport schoolchildren.

STAR now places a narrow statutory alert above that historical letter. Effective September 1, 2025, House Bill 4426 exempts a vehicle purchased, used, or rented by a nonprofit food bank and used primarily for the food bank's purposes. It also exempts an entity providing housing services when the vehicle is used primarily as housing for people experiencing homelessness.

Those new categories do not create a general nonprofit vehicle exemption. The alert points to STAR 202508015N for the 2025 change.

What this means for you

Charities and other nonprofit organizations

Nonprofit status alone did not exempt the schoolchildren's van. Look for a specific Chapter 152 exemption matching the organization and the vehicle's primary use.

Food banks and housing-service providers

The 2025 alert may change the answer only if the vehicle and use fit its exact food-bank or housing-services language.

Common questions

Q: Was the charity's school-transport van exempt in the 2001 ruling?

A: No. The Comptroller found no general charity exemption in the motor vehicle tax chapter.

Q: Does the 2025 alert exempt every nonprofit vehicle?

A: No. It identifies only the stated food-bank and housing-service categories.

Citations and references

• Tex. Tax Code ch. 152
• House Bill 4426, 89th Legislature, effective September 1, 2025
• STAR 202508015N is named in the official alert; no unverified internal link is supplied.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/200104195L

Original ruling text

ALERT: 89th Legislature House Bill 4426 provides an exemption for a vehicle purchased, used, or rented by a nonprofit food bank that is used primarily by the food bank for its purposes and exempts an entity providing housing services that primarily uses the vehicle as housing for individuals who are experiencing homelessness. Effective September 1, 2025. See STAR 202508015N.

April 25, 2001

To: **

<**>

Dear **:

I am responding to your e-mail regarding sales tax. You ask if a charity

organization is exempt from paying sales tax on the purchase of a van to use

for school children.

Although nonprofit service organization may be exempt from various other state

taxes and fees, there is no provision in the Motor Vehicle Tax Code Section 152

to exempt a charity organization from motor vehicle sales tax.

You may view or download the Texas Tax Code at:

http://www.capitol.state.tx.us/statutes/statutes.html and then click on the

following

1. Chapter 152

2. Scroll down to the referenced statutory section.

This opinion is based on the information presented. If there is additional or

different information, the opinion may change.

If I can be of further assistance, the e-mail address is

or you can call me at 1-800-531-5441, extension

5-9913. You may also write to Tax Policy Division, Comptroller of Public

Accounts, P.O. Box 13528, Austin, TX 78711-3528.

Sincerely,

Elias Amaya

Tax Policy Division

On Mon, 9 Apr 2001 11:54:09 -0500 "**" <**> wrote:

Are charity organizations exempt from paying sales tax on purchase of a van to

use for school children? Funds have been contributed for this purpose .

Please advise what if any tax relief might be available.

Thanks **