How did Texas tax a concrete pump bought with a truck, bought separately, or leased with the truck?

Plain-English summary

The Texas Comptroller gave different results depending on how a truck-mounted concrete pump was purchased.

If one vendor sold the truck with the pump already attached in one transaction, motor vehicle tax applied to the entire charge. If the buyer bought the truck chassis from one vendor and the pump from another, the chassis was subject to motor vehicle tax and the pump to limited sales tax, regardless of who attached it.

Adding the pump did not stop the completed unit from being a motor vehicle. Giving another person exclusive use without an operator for more than 180 days was a lease; lease receipts were not taxed, but the lessor's Texas purchase was. For an out-of-state purchase brought into Texas, the operator owed motor vehicle use tax.

What this means for you

Concrete-pumping companies and equipment dealers

One combined sale and two separate vendor purchases received different tax treatment.

Equipment lessors

The historical lease result depended on exclusive use, no operator, and a term over 180 days.

Common questions

Q: Was the pump taxed as part of the vehicle in a combined sale?

A: Yes.

Q: What if the pump and chassis came from different vendors?

A: Motor vehicle tax applied to the chassis and limited sales tax to the pump.

Citations and references

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

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/9705471L

Original ruling text

May 30, 1997

Dear ***:

Thank you for your request for motor vehicle tax information.

If your client purchases from one vendor (in a single transaction) a truck with
a concrete pump attached at the time of sale, motor vehicle tax is due on the
entire amount charged for the truck and attachment. If your client purchases a
truck chassis from one vendor and the concrete pump from another vendor
(regardless of who attaches the pump to the chassis), the truck chassis
purchase is subject to motor vehicle tax and the pump purchase is subject to
limited sales tax.

If a concrete pump is added to a motor vehicle, the result is still a motor
vehicle (with pump attached). If you give exclusive use of a motor vehicle
(without an operator) to another for a period of more than 180 days, it is a
lease of the motor vehicle and the lease receipts are not subject to tax.
Motor vehicle sales tax will be due on the lessor's purchase in Texas; if the
vehicle is purchased outside Texas and brought into Texas for use, motor
vehicle use tax will be due from the operator.

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

If you have any questions, please do not hesitate to call me at 463-4663. You
may also write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Joan Hale Williams
Tax Policy Division