Did a Texas vehicle with a newly installed left accelerator qualify for the orthopedic-disability tax exemption?

Plain-English summary

The Texas Comptroller denied the motor vehicle tax exemption for a vehicle fitted with a left accelerator because the facts indicated the driver had already operated the vehicle without that modification.

The historical exemption required both an eligible driver or passenger with an orthopedic disability and qualifying adaptive equipment needed for driving or transportation. The letter listed hand accelerator or brake controls, steering-system modifications, and a left accelerator as qualifying examples.

But the 1997 Ford already had more than 3,700 miles when the left accelerator was ordered. The Comptroller treated that mileage as evidence that the driver could operate the vehicle without the modification, so the driver did not meet the stated definition for this purchase.

In other cases, the agency could require documentation such as a physician's description of the need for the modification. The person could pay the tax and request a refund through the administrative hearing process.

What this means for you

Drivers with disabilities and caregivers

Qualifying equipment alone did not establish the historical exemption; the modification also had to be necessary for the driver or passenger.

Adaptive vehicle dealers and installers

Keep records showing when the modification was installed and why it was needed.

Accountants and tax professionals

The letter treated substantial pre-modification mileage as adverse evidence, while allowing medical documentation in other cases.

Common questions

Q: Was a left accelerator qualifying equipment?

A: Yes.

Q: Why was the exemption denied?

A: More than 3,700 prior miles indicated that the driver could operate the vehicle without the modification.

Q: Could the person challenge the denial?

A: Yes, by paying the tax and requesting a refund through an administrative hearing.

Citations and references

• The letter described the statutory eligibility definition without identifying its section 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/9708590L

Original ruling text

August 22, 1997

Dear Ms **:

Earlier we spoke about the orthopedic handicapped exemption available in motor
vehicle sales tax. In order for the purchase to be exempt the driver or
passenger must be orthopedically handicapped and the vehicle must be modified
with certain adaptive equipment to enable the driver to operate the vehicle or
for a passenger to be transported in the vehicle.

Qualifying modification of a vehicle to be driven by an eligible person
includes hand accelerator/brake or steering system. The left accelerator is a
qualifying modification.

The second requirement is that the driver be orthopedically handicapped. The
tax law defines orthopedically handicapped person as a person who because of a
physical impairment is unable to operate the vehicle without the qualifying
modification. The pedal sales order on the 1997 Ford indicates that the unit
already has over 3700 miles. This indicates that the driver is able to operate
the vehicle without the modification and the exemption is not available. This
denial has been determined by hearings.

In other situations it may be necessary to require documentation of a persons
eligibility. Documentation may include a physicians description of the need
for the modification.

This person may pursue the issue by paying the tax and then requesting a refund
through the administrative hearing process.

Please give me a call if you have any questions.

Sincerely,

Curt Swenson
Tax Policy Division