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Ezel / Tax Rulings / TX
TX 9907555L Motor Vehicle Tax 1999-07-19

Was a motor vehicle sale to the Kickapoo Indian Tribe exempt from Texas motor vehicle sales tax, and did the exemption extend to individual members?

Short answer: A sale directly to the Kickapoo Indian Tribe was exempt. The letter said a federal statute exempted the Alabama-Coushatta, Kickapoo, and Tigua tribes from state sales and excise taxes. But the buyer had to be the tribe itself; a sale to an individual tribal member was taxable.

Apply this to your situation

This page answers the general question as of 1999. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1999
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller letter issued on the specific facts presented. It dates from 1999, predates modern Private Letter Ruling reliance terms, and cannot be treated by unrelated taxpayers as binding protection. The letter refers to a federal statute but does not identify it, and tribal-tax law may have changed; verify current federal and Texas law before relying on the historical result. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Texas Comptroller said a motor vehicle sold directly to the Kickapoo Indian Tribe was exempt from motor vehicle sales tax.

The letter stated that a federal statute exempted the Alabama-Coushatta, Kickapoo, and Tigua Indian Tribes from state sales and excise taxes. It did not identify the statute by number.

The identity of the buyer controlled. The vehicle had to be sold to the tribe itself. A sale to an individual tribal member was taxable.

What this means for you

Tribal governments

Under this historical letter, the exemption applied to a direct tribal purchase.

Motor vehicle dealers

Confirm whether the legal purchaser is the tribe or an individual member. The Comptroller gave opposite tax results.

Tribal members

Individual membership did not make a personal vehicle purchase exempt under the letter.

Common questions

Q: Was a sale to the Kickapoo Tribe exempt?

A: Yes.

Q: Was a sale to a Kickapoo member exempt?

A: No.

Q: Did the letter identify the federal statute?

A: No.

Q: Which tribes did the letter name?

A: The Alabama-Coushatta, Kickapoo, and Tigua tribes.

Citations and references

  • An unidentified federal statute described as exempting the named tribes from state sales and excise taxes.

Source

Original ruling text

July 19, 1999

Dear Ms. **:

Thank you for your inquiry regarding motor vehicle sales tax and the Kickapoo
Indian Tribe.

The Alabama-Coushatta, Kickapoo and Tigua Indian Tribes are exempt by federal
statute from state sales and excise taxes. Therefore, the sale of a motor
vehicle to the Kickapoo Indian Tribe is exempt from motor vehicle sales tax.
The vehicle must be sold to the tribe to be exempt; a sale to a tribe member is
taxable.

If you have any questions, please do not hesitate to call me toll free at
1-800-531-5441, extension 34663. My direct number is 512/463-4663.

Sincerely,

Joan Hale
Tax Policy Division

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