Is monthly storage of RVs, campers, and boats at a converted airport storage yard taxable in Texas, and does it matter if a boat is sitting on a boat trailer?

Plain-English summary

Someone operating a monthly storage yard at a closed airport -- storing RVs, campers, and boats long-term, not the kind of by-the-hour parking lot people come and go from -- asked the Comptroller to fill a gap: the published motor vehicle storage rule is silent about boats specifically.

The Comptroller's answer draws a clean line based on what Texas's storage tax actually covers. The law names only three specific categories subject to a storage tax: (1) storage of electronic data online, (2) fur cold storage, and (3) motor vehicle storage. Nothing else is taxed for storage, regardless of how the storage business is otherwise organized.

That means:

• RVs and campers are motor vehicles, so their monthly storage charges are taxable.
• Boats are NOT taxable to store -- even if the boat is sitting on a boat trailer. The boat trailer question specifically matters because a trailer itself might arguably look like a "vehicle," but the presence of a boat on a boat trailer doesn't convert the boat into a taxable motor-vehicle-storage situation; boats simply aren't one of the three listed categories.
• Household goods and other equipment are likewise untaxed for storage purposes, for the same reason.

The Comptroller pointed to Rule 3.290 (moveable specialized equipment and motor vehicles) as the tool for determining whether a given piece of property actually meets the definition of a "motor vehicle" -- if it doesn't, storage of it in the yard is not taxable. And for anyone who already over-collected tax on boat or other non-motor-vehicle storage, the fix is straightforward: refund the tax to the customer and take a credit on your own tax return.

What this means for you

Storage facility operators handling a mix of vehicles, RVs, and boats

Sort your monthly billing by whether the stored item is a motor vehicle (taxable storage) or something else like a boat, household goods, or general equipment (not taxable) -- a boat trailer under a boat doesn't change the boat's own non-taxable status.

Businesses that may have over-collected tax on boat/equipment storage

You have a clean remedy: refund the customer and take a corresponding credit on your own sales tax return, rather than needing to go through the Comptroller directly.

Accountants and tax professionals

A useful, narrow but clear precedent establishing the closed, three-category list for Texas storage-service taxability (online data, fur cold storage, motor vehicles) -- a good quick-reference for any storage-adjacent business questioning whether their service falls inside or outside the taxed categories.

Common questions

Q: Is storing a boat taxable in Texas?
A: No, even if the boat sits on a boat trailer -- boats aren't one of the three categories subject to Texas's storage tax.

Q: Is storing an RV or camper taxable?
A: Yes, RVs and campers are motor vehicles, and motor vehicle storage is one of the three taxed categories.

Q: What are the only categories subject to Texas's storage tax?
A: Storage of electronic data online, fur cold storage, and motor vehicle storage -- nothing else.

Q: What if I already charged tax on boat storage by mistake?
A: Refund the tax to your customer and take a corresponding credit on your own sales tax return.

Q: Can I rely on this letter for my own storage business?
A: No. It is based on the specific facts presented and can only be relied on by the taxpayer to whom it was issued.

Citations and references

Statutes and rules:

• 34 Tex. Admin. Code Rule 3.290 (moveable specialized equipment and motor vehicles)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9904336L

Original ruling text

April 23, 1999

Dear Ms. **:

Thank you for writing to get clarification on the proper tax treatment of the
storage of RV's, campers and boats. You have seen our rule on motor vehicle
storage and it is silent regarding the storage of boats.

You have given us the following facts:

You operate a storage yard at an airport that has closed. Space will be rented
by the month for the storage of RV's, campers and boats. It is not the type of
parking lot or parking garage where people come and go by the hour.

RV's and Campers are motor vehicles and the monthly storage charge is taxable.
However, the law is specific as to the items to which the storage tax applies.
So far the storage tax applies only to the storage of electronic data online,
fur cold storage and motor vehicles.

Currently there is no tax on the storage of other items such as household goods
or boats (even if the boat is on a boat trailer) or other pieces of equipment..
If you have collected a tax on the storage space for a boat or other property
that is not a motor vehicle, you may refund the tax to your customer and take a
credit on your tax return.

I am sending you rule 3.290 relating to moveable specialized equipment and
motor vehicles to help you determine whether property is considered a motor
vehicle. If the property does not meet the definition of a motor vehicle, the
storage in your lot is not taxable.

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

You may call me toll free at 1-800-531-5441, ext. 3-4675. The direct line is
(512) 463-4675. You also may write to Tax Policy Division, Comptroller of
Public Accounts. You may also e-mail our tax help section at:
[email protected]>

Sincerely,

Tom Soto
Tax Policy Division