Did merely passing through Texas in a Canadian tour bus bought outside Texas trigger motor vehicle use tax?

Plain-English summary

A Canadian tour bus merely passing through Texas did not trigger historical motor vehicle use tax on the facts assumed.

The response assumed the bus would not be purchased in Texas and would make no extended Texas visits or stops. Its transitory operation through the state therefore did not create the use-tax liability discussed.

A separate fuels-tax requirement still applied. The operator needed a Bonded Import User-Interstate Trucker Permit and was sent the bond and application forms.

What this means for you

The letter did not announce a broad charter-bus purchase exemption. Its answer depended on outside-Texas purchase and brief interstate passage, and it preserved a separate fuel-permit obligation.

Common questions

Q: Did passing through trigger motor vehicle use tax?
A: No, under the stated assumptions.

Q: Would extended visits or different purchase facts matter?
A: Yes. The letter expressly said different facts could change the determination.

Q: Was another permit required?
A: Yes, a Bonded Import User-Interstate Trucker Permit for fuels-tax purposes.

Citations and references

• No statute or rule was cited in the response.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/7801L2019E05

Original ruling text

January 4, 1978

Dear **:

A copy of your request for information about operating your tour bus in Texas
has been forwarded to me for reply with regard to the taxation issues you
raise.

You should be aware of two separate taxes which may apply to your situation:
the Motor Vehicle Sales and Use Tax, and Fuels Tax.

From your letter I have assumed that you will simply be traveling through Texas
on your tour, rather than making any extended visits or stops here, and that
you will not be purchasing your bus in Texas. Provided that this is the case,
the transitory presence and operation of your tour bus in Texas will not
trigger liability for the Motor Vehicle Use Tax. This conclusion is based on
the assumption stated, and the facts you presented; if the assumptions are
incorrect, or the facts differ from those presented, the determination as to
your liability may be different.

The Fuels Tax Division requires you to have a Bonded Import User-Interstate
Trucker Permit in order to operate in Texas. Therefore, please find enclosed
the necessary bond and application form, which must be completed and returned
to the Fuels Tax Division of the Office of the Comptroller.

If you have any questions you may write the Motor Vehicle Sales Tax Division or
call toll free 1-800-252-5555 from anywhere in Texas or 512/475-6897.

Yours very truly,

Patricia Brockway
Division Attorney
Motor Vehicle Sale Tax Division

cc: Fuels Tax Division

December 29, 1978

Dear **:

A copy of your recent letter requesting information about the prerequisites to
operating your tour bus in Texas has come to me for reply.

I have taken the liberty of sending copies of your letter to other divisions of
the Office of the Comptroller which administer taxes which may come into play
in your situation. In order to give you a more thorough response, I will
incorporate the information supplied by these divisions into our reply, which I
will send you as soon as possible.

If you have any questions you may write the Motor Vehicle Sales Tax Division or
call toll free 1-800-252-5555 from anywhere in Texas or 512/475-6897.

Sincerely,

Patricia Brockway
Division Attorney
Motor Vehicle Sales Tax Division

December 6th, 1978.

Motor Transport Commission
Capital State Building
Austin, Texas
U.S.A.

Dear Sirs:

We will be purchasing a bus for the explicit use of TOUR COMPANY in
transporting our group and tour package customers.

For all the intent and purposes this bus is designated by us as a "PRIVATE"
coach. We have not got and do not wish to have a Charter License for your State
or any other State in the Union. This would be strictly for the purpose of
bringing tourists into your State from Canada.

We therefore would like to have from your Department a letter of permission to
operate our "PRIVATE" coach on highways through and in your State.

We anticipate your favorable reply and in doing so, please outline to us the
permits and/or fuel permit requirements.

Thanking you in advance for your kind attention to this matter.

Yours very truly,

Operations Manager