When did converting a farm tractor to mow Texas highway rights-of-way trigger historical vehicle tax?

Plain-English summary

A farm tractor converted to mow grass or weeds on public highways became taxable under the historical rules when titled and registered.

Farm tractors used only for farming remained instruments of husbandry without title or registration. Road-construction machinery needed a $5 license plate but no title. Highway mowing tractors needed title, regular registration, and regular plates.

The attached exhibit applied purchase-date rules:

• Before May 1, 1941: no tax, even after conversion.
• May 1, 1941 through February 28, 1950: one-percent tax at title and registration for highway mowing.
• March 1, 1950 through August 31, 1959: the same one-percent treatment.
• On or after September 1, 1959: 1.5-percent tax at registration for highway mowing.

The letter said a tractor-mower lost farm-machinery identity under former article 6.05(3) when titled, registered, and used for public-highway mowing. Staff were instructed to find untaxed registrations and direct county collectors to collect.

What this means for you

The historical treatment turned on purchase date and use. Conversion plus public-highway mowing, rather than the machine's original farm purpose alone, triggered the stated tax path.

Common questions

Q: Were farm-only tractors titled or registered?
A: No.

Q: Did every converted tractor owe the same rate?
A: No. The rate depended on purchase date.

Q: Did road-construction machinery receive a title?
A: No, though the exhibit required a $5 plate.

Citations and references

• Article 6.05(3), Motor Vehicle Sales and Use Tax Law

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/6206L2015B08

Original ruling text

June 22, 1962

Mr. E. J. Castille
Director Field Operations
O f f i c e

Dear Mr. Castille:

A few months ago the Texas Highway Department put into effect
a law which will require all tractors to be registered and
titled, with the exception of tractors that are used for farm
purposes only.

During the past few weeks, we have received several inquiries
from Tax Assessor-Collectors in regard to whether a sales tax
should be paid on a farm tractor that has been converted into
a tractor-mower, and for that reason must be registered and
titled with the Texas Highway Department. After discussing
the matter with Mr. Calvert, and in studying the Motor Vehicle
Sales and Use Tax Law, we have reached the conclusion that if
a farm tractor-mower is used for mowing grass and weeds upon
the public highways, a sales tax must be paid. Mr. Calvert
requested that we only write at this time, letters to Tax
Assessor-Collectors who make inquiries. Therefore, for your in-
formation, we are enclosing 25 copies of an exhibit that will
be sent to the Tax Assessor-Collectors when we receive letters
from them about the matter.

Our employees here in the Division have been instructed to check
the receipts while auditing the Monthly Sales and Use Tax Reports,
and call my attention to the matter in a case where they find
that a Tax Assessor-Collector has registered a tractor-mower with-
out collecting the tax, and we are writing a letter to the Assessor-
Collector advising him to contact the owner and collect a tax. I
think it would be wise for you to give the same information to our
Auditors because we may over-look some of the receipts while
checking the Monthly Reports. I am glad to say, however, we have
found several cases where tractor-mowers have been registered with-
out collecting a tax, and they have been instructed to make col-
lections and copies of the letters will be put with the working-
papers that you will send to the Auditors when they make a detailed
audit of the Tax Assessor-Collectors' Accounts.

Yours truly,
W. L. Brown, Director
Ad Valorem & Intangibles Tax Division

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN

INFORMATION RECEIVED FROM THE TEXAS HIGHWAY DEPARTMENT IN REFERENCE TO
ROAD CONST-
RUCTION MACHINERY AND TRACTORS TO BE USED FOR MOWING WEEDS AND GRASS ON
THE HIGHWAYS.

1. All Road Construction Machinery must obtain a license plate and
   pay a fee of
   $5.00. A title, however, is not issued on road construction machinery.

2. A title must be issued on all tractors used for mowing grass or
   weeds upon
   the highways; and they must, also, be registered and regular
   registration
   plates will be issued, and the owner must pay the regular registration
   lic-
   ense fee.

3. Farm tractors used for farm purposes only are considered
   instruments of hus-
   bandry by the Texas Highway Department and do not have to be registered
   and
   no titles are issued.

RE: THE LAW, AS CONSTRUED BY THE COMPTROLLER, IN REFERENCE TO THE SALES
OR USE TAX
ON FARM TRACTOR-MOWERS THAT NOW MUST BE TITLED, REGISTERED, REGULAR
REGISTRATION
PLATES ISSUED, AND THE REGULAR REGISTRATION LICENSE FEE MUST BE PAID.

1. If the tractor was purchased prior to May 1, 1941, at which
   time the Retail
   Sales and Use Tax Law was passed, no tax would be due, even though it
   has
   since been converted into a tractor-mower.

2. If the farm tractor was purchased between May 1, 1941 and
   February 28, 1950,
   and it has been converted into a tractor-mower, a Sales Tax of 1% will
   have
   to be paid when it is titled, registered, and used for mowing grass or
   weeds
   upon the public highways.

3. If the farm tractor was purchased between March 1, 1950 and
   August 31, 1959,
   and it has been converted into a tractor-mower, a Sales Tax of 1% will
   have
   to be paid when it is titled, registered, if it is used for mowing
   grass
   or weeds upon the public highways.

4. A tractor purchased on or after September 1, 1959, and has
   since been con-
   verted into a tractor-mower, a Sales Tax of 1.5% will have to be paid
   when
   it is registered, if it is used for mowing grass or weeds upon the
   public
   highways.

5. The farm tractor-mower loses its identity as farm machinery, as
   referred to
   in the Motor Vehicle Sales and Use Tax Law, Article 6.05(3), when it is
   titled
   and registered, if it is used for mowing grass or weeds upon the public
   high-
   ways.