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Ezel / Tax Rulings / TX
TX 7710L2013A12 Motor Vehicle Tax 1977-10-11

Were U.S. Department of Labor employees exempt from Texas motor vehicle rental tax while on official business?

Short answer: Yes. U.S. Department of Labor employees conducting official government business were exempt from the historical motor vehicle rental tax. They had to present identification and travel orders, complete and sign the renting agent's exemption certificate, and attach it to the rental contract.

Apply this to your situation

This page answers the general question as of 1977. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1977
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an October 11, 1977 response to the U.S. Department of Labor. The operative body addresses federal employees on official government business, not a state agency or university despite STAR's subject label. Federal rental-tax exemptions, employee eligibility, official-business standards, identification, travel orders, exemption certificates, rental-contract documentation, and agent duties may have changed. The enclosed certificate is not included in STAR's text. STAR documents may no longer represent current policy even when not marked superseded. The addressee's name is redacted. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

U.S. Department of Labor employees were exempt from historical motor vehicle rental tax when conducting official government business.

The employee had to present identification and travel orders to verify the official purpose.

The renting agent provided an exemption certificate. The employee completed and signed it, and the certificate was attached to the rental contract to document the exemption.

What this means for you

The exemption depended on the employee's official federal business and contemporaneous documentation, not merely federal employment.

Common questions

Q: Did every Labor Department rental qualify?
A: The letter required official government business.

Q: What proof was presented?
A: Identification and travel orders.

Q: How was the exemption documented?
A: With a signed exemption certificate attached to the rental contract.

Citations and references

  • No statute or rule was cited in the letter.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

October 11, 1977

Regional Administrator
U.S. Department of Labor
555 Griffin Square Building
Dallas, Texas 75202

Dear ***:

Your recent letter concerning expenses incurred by U.S. Department
of Labor employees has been forwarded to the Motor Vehicle Sales Tax
Division.

U.S. Department of Labor employees are exempt from Motor Vehicle
Rental Tax when conducting official government business. Identi-
fication and travel orders must be presented to verify the employee
is conducting government business.

An exemption certificate is enclosed for your review. This certi-
ficate is provided by the renting agent and should be completed and
signed by the employee claiming exemption. The completed certificate
is attached to the Rental Contract to document the exemption.

If you have any questions, please write the Motor Vehicle Sales Tax
Division or you may call me toll free, 1-800-252-5555.

Yours very truly,
Richard Montgomery

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