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Ezel / Tax Rulings / TX
TX 8910L0994D09 Motor Vehicle Tax 1989-10-16

Was federal retail sales excise tax included in the Texas motor vehicle sales tax base?

Short answer: No. The 1989 letter said the federal retail sales excise tax was imposed on the retail purchaser rather than the manufacturer, so it was excluded from total consideration subject to Texas motor vehicle sales tax.

Apply this to your situation

This page answers the general question as of 1989. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1989
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 1989 Texas Tax Correspondence letter about the federal retail sales excise tax then imposed on vehicle purchasers. It predates modern Private Letter Ruling reliance terms and cannot bind the Comptroller for unrelated taxpayers. Federal excise taxes, who bears them, Texas total-consideration rules, and the motor vehicle tax base may have changed. The letter cites no statute or rule. 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 Tax Correspondence Division excluded federal retail sales excise tax from total consideration subject to motor vehicle sales tax. It distinguished the then-current tax on the retail purchaser from the pre-April 1, 1983 federal tax imposed on the manufacturer.

What this means for you

This is historical treatment of a historical federal charge. Verify current federal and Texas tax-base rules.

Common questions

Q: Was the retail federal tax included in total consideration?

A: No.

Citations and references

  • The letter cited no statute or administrative rule by number.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller October 16, 1989

Dear **:

Thank you for your recent letter regarding Motor Vehicle Sales tax being
charged on Federal Excise Tax.

Before April 1, 1983, the Federal Excise Tax was imposed on the
manufacturer,
and was part of the total consideration paid for the vehicle that sales
tax
was applied to. However, since a Federal Retail Sales Excise Tax is now
imposed on the retail purchaser rather than the manufacturer, it is not a
part of the total consideration paid for the vehicle. Motor Vehicle
Sales
Tax is applied to the total consideration paid excluding the Federal
Retail
Sales Excise Tax.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need more information, please call our
toll-free
number 1-800-252-5555. The regular number is 512/463-4600. You may
write me
at Tax Correspondence, Comptroller of Public Accounts.

Sincerely,
Bettie U. Peterson
Tax Correspondence

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