Do motorized shopping carts (the powered, basket-equipped carts stores provide for mobility-impaired shoppers) qualify for the wheelchair sales tax exemption?

Plain-English summary

A Comptroller staffer double-checked a prior August 1997 answer about "wheelchairs" purchased by a store. The vendor called the item a "motorized shopping cart" and the store's asset list called it a "handicap shop cart" — described as looking like a powered tricycle with a basket for the shopper's purchases, and not, in practice, restricted to use by customers with disabilities. The employee couldn't find a definition of "wheelchair" and wanted to confirm these items still qualified.

The Comptroller confirmed: such carts are considered wheelchairs and may be purchased tax-free. The ruling doesn't turn on what the vendor or store calls the item, or on whether its use is formally restricted to people with disabilities — it's treated as exempt medical/mobility equipment regardless.

What this means for you

Retailers and grocery stores providing shopping carts for mobility-impaired customers

You can buy motorized/powered shopping carts intended for customers with mobility impairments tax-free as wheelchairs — the label on the invoice or your own asset list ("motorized shopping cart," "handicap shop cart," etc.) doesn't change the exemption, and open availability to all shoppers doesn't defeat it either.

Common questions

Q: Are motorized shopping carts exempt from Texas sales tax?
A: Yes — they're treated as wheelchairs and may be purchased tax-free.

Q: Does it matter that the vendor calls it a "motorized shopping cart," not a wheelchair?
A: No — the Comptroller looked past the label to the item's function.

Q: Can another retailer rely on this exact letter?
A: No. This is a Texas STAR letter ruling binding on the Comptroller only for the taxpayer it addresses (34 Tex. Admin. Code Rules 3.1, 3.10); confirm your own facts with a tax professional.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9709742L

Original ruling text

To: Brown, Kelton

September 30, 1997

Kelton Brown

Dear Mr. Brown:

Thank you for your recent email on the tax treatment of motorized shopping
carts for use by individuals with mobility impairments.

Such carts are considered wheel chairs and may be purchased tax free.

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

You may call me toll free at 1-800-531-5441, ext. 3-4680. The direct line is
512/463-4680. You may also write to Tax Policy, Comptroller of Public Accounts.
The email address is .

Sincerely,

Al Van Allen
Tax Policy Division

From: Brown, Kelton on Tue, Sep 30, 1997 1:52 PM
Subject: the STORE
To: Van Allen, Al

Hello, Al. Back in August you responded to a letter (or e-mail) from Mr.
** of the STORE concerning wheelchairs. So that I know we are all on
the same page I wanted to double check a couple of facts with you.

What the STORE is calling a wheelchair the vendor calls a motorized shopping
cart and the STORE'S asset list calls a handicap shop cart (although to my
knowledge use is not restricted to the handicapped). I am sure you have seen
them in stores (they are in other store chains also). They look like a powered
tricycle and have a basket for the shopper to hold their purchases. Are you
saying these items qualify as wheelchairs? I have searched for a definition of
a wheelchair but have been unable to locate one.

I would appreciate any input you might have on these items qualifying as a
wheelchair.