Was a Texas resident serving outside the state exempt from Texas motor vehicle tax on an out-of-state motor-home purchase?

Plain-English summary

Military status did not exempt a Texas resident's out-of-state mini-motor-home purchase from Texas motor vehicle sales and use tax.

The Comptroller said the misconception may have arisen because military personnel present in Texas only under military orders could sometimes operate vehicles with home-state plates. Avoiding Texas plates could delay collection through the county title process, but the letter said the tax was still owed.

Sales tax paid to Nebraska could offset Texas use tax if the purchaser provided proof. The five-percent rate and county procedures stated in the letter are historical.

What this means for you

Military registration privileges and tax exemptions are separate questions. For an out-of-state purchase, preserve proof of any tax paid to the other state and verify current Texas and federal military rules.

Common questions

Q: Was there a general military-personnel exemption?
A: No, according to the letter.

Q: Could Nebraska tax reduce Texas tax?
A: Yes, with proof of payment.

Q: Is the five-percent rate current?
A: This page does not claim that; it is the 1984 rate printed in the source.

Citations and references

The letter cites no numbered statute or rule. It discusses Texas motor vehicle use tax, military plate treatment, county title procedures, and credit for Nebraska sales tax.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/8412L0653C07

Original ruling text

December 7, 1984

Dear ***:

Thank you for writing to inquire about registering and titling your
mini-motor home in Texas.

It appears you have received some incorrect information regarding the
motor vehicle sales tax. The exemption from the tax for military
personnel seems to be a popular misconception. There is no exemption
from the motor vehicle sales and use tax in Texas for military personnel.

The idea, that an exemption from the Tax exists, may be the result of
the Department of Highways allowing military personnel, who are in
Texas only on Military orders, to operate their vehicles with their home
state license plates. Since the vehicle does not get Texas license plates,
payment of the tax is escaped, because the fees for the plates, title and
tax are all paid to the County-Tax Assessor-Collector when applying for
the title. The tax, however, is still owed to the state of Texas.

The motor vehicle sales and use tax rate is five percent and would amount to
$*** on the purchase price of $***** for your motor home.

You should write the tax assessor-collector of your home county in Texas for
the cost of registration plates and title application fees. You will need to
include the year, model and weight of your motor home, as well as the price you
paid. If you paid a sales tax in the state of Nebraska, you will be allowed credit
to offset the Texas use tax. You will have to show proof of the amount of tax you
may have paid.

If we can be of further help, please call us at 1-800-252-5555 toll free from
anywhere in Texas. You may write us at the Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division