Did a pickup with a hayloader mounted on a multipurpose flatbed qualify for Texas's farm-machine motor vehicle tax exemption?

Plain-English summary

The Texas Comptroller denied the farm-machine exemption for a pickup truck with a hayloader mounted on a multipurpose flatbed.

The 1999 version of Tax Code § 152.001(12) included self-propelled vehicles specially adapted for crop production, livestock or poultry rearing, feedlot use, or applying plant food, agricultural chemicals, or livestock feed.

But the definition excluded a self-propelled vehicle designed or specially adapted solely to transport agricultural products or those agricultural materials. The Comptroller found that this truck's multipurpose flatbed was designed only to load and transport livestock feed, so the vehicle was taxable.

What this means for you

Farmers and ranchers

The historical exemption distinguished production or application machinery from vehicles that only transported agricultural materials.

Agricultural equipment dealers

Mounting a hayloader on a multipurpose flatbed did not establish that the vehicle itself was specially adapted for an exempt activity.

Truck dealers

Document the vehicle's design and function, not only the equipment attached to it.

Common questions

Q: Did the pickup qualify as a farm machine?

A: No.

Q: Why not?

A: Its flatbed was designed only to load and transport livestock feed.

Q: What did the statute include?

A: Certain self-propelled vehicles specially adapted for agricultural production, livestock, feedlot, or material-application uses.

Citations and references

• Tex. Tax Code § 152.001(12)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/9902144L

Original ruling text

February 2, 1999

Dear Ms. **:

Thank you for your request for motor vehicle tax information. You ask if a
particular truck meets the definition of a "farm machine" and is exempt under
the motor vehicle tax statute.

Subsection 152.001(12) of the Tax Code defines a "farm machine" as 'a
self-propelled motor vehicle specially adapted for use in the production of
crops or rearing of livestock, including poultry, and use in feedlots and
includes a self-propelled motor vehicle specially adapted for applying plant
food materials, agricultural chemicals, or feed for livestock. "Farm machine"
does not include any self-propelled motor vehicle specifically designed or
specially adapted for the sole purpose of transporting agricultural products,
plant food materials, agricultural chemicals, or feed for livestock.'

I have reviewed the picture you submitted of the pick-up truck with a hayloader
mounted on the back. Because the truck bed is a multipurpose flat bed designed
only for loading and transporting feed for livestock, it does not meet the
definition of a "farm machine" and is taxable.

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

If you have any questions, please do not hesitate to call one of our tax
specialists toll free at 1-800-252-5555. The direct number is 512/463-4600.
You may also write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Joan Hale
Tax Policy Division