Is an electric cart bought as a substitute for a wheelchair exempt from Texas sales tax?

Subject

Wheelchair — Lifts Mounted/Installed In Vehicles

Plain-English summary

A taxpayer wrote to the Comptroller asking whether an electric cart bought to use instead of a wheelchair could be purchased free of Texas sales tax. The Comptroller's office answered that electric powered carts used in lieu of wheelchairs qualify for exemption from sales tax, and no prescription is needed to claim it. The letter separately notes that vehicle-mounted wheelchair lifts are also exempt, but only when sold on a prescription. The Comptroller enclosed a brochure, "State Tax Exemptions for People with Disabilities," and told the taxpayer they should be able to buy the cart tax-free, offering a staff contact to call if the seller had any trouble honoring the exemption.

What this means for you

People buying a mobility device

If you are buying an electric cart to use in place of a wheelchair in Texas, the seller should not charge sales tax, and you do not need a prescription to get that exemption. If a retailer insists on charging tax, this letter (and the Comptroller's disability exemption brochure) is useful supporting evidence, though it was written for a different taxpayer and is not a substitute for your own guidance from the Comptroller.

Sellers of mobility equipment

Electric carts sold as a wheelchair substitute should be sold tax-exempt without requiring a prescription from the buyer. Vehicle-mounted wheelchair lifts are treated differently: they are exempt only when sold pursuant to a prescription, so retailers should collect that documentation for lifts even though it isn't required for the carts themselves.

Accountants and tax professionals

This is a short, informal Comptroller response letter rather than a policy statement with statutory citations. It draws a distinction worth remembering: exemption for wheelchair-substitute electric carts requires no prescription, while exemption for vehicle-mounted wheelchair lifts does require one.

Common questions

Q: Do I need a doctor's prescription to buy an electric cart tax-free in Texas?
A: No. According to this letter, electric powered carts used in lieu of a wheelchair are exempt from Texas sales tax without a prescription.

Q: What about a wheelchair lift that mounts on my vehicle?
A: Those are exempt too, but only when sold on a prescription, per this letter.

Q: Where can I find more information on disability-related sales tax exemptions in Texas?
A: The Comptroller's office referenced a brochure titled "State Tax Exemptions for People with Disabilities" as a resource, though it is not reproduced in this letter.

Q: What if a store won't honor this exemption?
A: The letter itself suggests contacting the Comptroller's office staff for help if you experience difficulty buying the cart tax free.

Q: Can I rely on this letter for my own purchase?
A: This letter was addressed to a specific taxpayer whose identity is redacted, so under Texas rules it can only be the basis of a detrimental-reliance claim for that original recipient. Other taxpayers can look to it as a signal of Comptroller policy but should confirm current guidance for their own situation.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9208L1194C10

Original ruling text

August 5, 1992

Dear ***:

Thank you for your recent letter requesting an exemption from sales tax for an
electric cart used in lieu of a wheelchair.

Electric powered carts used in lieu of wheelchairs qualify for exemption from
sales tax without a prescription. Vehicle-mounted wheelchair lifts are exempt
when sold on a prescription. I am enclosing our brochure State Tax Exemptions
for People with Disabilities for your information.

In summary, you should be able to purchase the cart tax free. Should you have
any questions, or experience any difficulties buying the cart tax free, please
call Jeff Wiginton of my staff at 1-800-531-5441, extension 3-4506. He will be
glad to help.

If I can be of any further assistance, please let me know.

JOHN SHARP
Comptroller of Public Accounts