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Ezel / Tax Rulings / TX
TX 7712L2015A02 Motor Vehicle Tax 1977-12-01

Was a contractor exempt from Texas motor vehicle tax when renting a mobile office trailer for a public school project?

Short answer: No. The school district could qualify for exemption on vehicles it purchased, titled, plated, or rented itself, but the contractor did not inherit that exemption merely by acting on the school project. The mobile office trailer was treated as a motor vehicle.

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 official Texas Motor Vehicle Sales Tax Division letter issued on one 1977 school construction project. It predates modern Private Letter Ruling reliance terms and cannot bind the Comptroller for unrelated taxpayers. Mobile-office-trailer classification, public-agency exemptions, contractor or agent treatment, exempt plates, rentals, titles, and distinctions from limited sales tax may have changed. Taxpayer-identifying details are 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

The Texas Motor Vehicle Sales Tax Division treated the mobile office trailer as a motor vehicle.

The independent school district was exempt when it purchased and titled a vehicle in its own name with exempt license plates, and it was exempt on vehicles it rented.

The general contractor did not receive those motor vehicle exemptions merely because it bought or rented the trailer for the school construction project or described itself as the district's agent.

What this means for you

Government contractors

The public customer's exemption did not automatically flow through to the contractor under the historical letter.

School districts and mobile office rental companies

Who purchased, titled, plated, or rented the vehicle controlled the result.

Common questions

Q: Was the school district itself exempt?

A: Yes, on the qualifying purchases and rentals described.

Q: Was the contractor exempt?

A: No.

Q: Was the mobile office trailer a motor vehicle?

A: Yes.

Citations and references

  • The letter did not identify a statute or administrative rule by number.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

December 1, 1977

Dear ***,

Thank you for your letter concerning the rental of a mobile office
trailer used for a ** Independent School District Construction project.

A mobile office trailer is considered a motor vehicle and is subject to
motor vehicle tax.

The ** Independent School District is exempt from motor vehicle
sales tax on any motor vehicle they purchase and title in their name. The
vehicle must display exempt license plates. The school district is also exempt
from motor vehicle gross rental receipts tax on any motor vehicle they
rent.

CORP ABC is not exempt from motor vehicle sales tax or motor vehicle
gross rental receipts tax when purchasing or renting a motor vehicle pursuant
to a construction project for the ** Independent School District.

The sales tax exemption for the school district mentioned in your letter
applies to the Limited Sales, Excise and Use Tax on tangible personal
property, but does not apply to motor vehicles.

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

Yours very truly,
Richard Montgomery, Director
Motor Vehicle Sales Tax Division

November 21, 1977

Controller of Public Accounts
Motor Vehicle Sales Tax Division
Capitol Station
Austin, Texas 78774

Attention: Mr. Richard Montgomery

Reference: Rental of Mobile Office Trailer
* Independent School District

Dear Sir:

In accordance with our telephone conversation of this date, we request an
explanation of the sales tax requirement for rental of a mobile office
trailer
used exclusively for a * Independent School District Construction
project.

We, as General Contractor for ** ISD, are serving as their agent in
the purchase
and/or rental of all items required to complete this construction
project; thus
the sales tax exemption for the school district should apply toward a
rental
contract for the project.

Please advise.

Very truly yours,

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