Does a private petrochemical refinery owe Texas motor vehicle tax on a fire truck, command van, and breathing-air truck?

Plain-English summary

The Texas Comptroller ruled that a private petrochemical refinery owed motor vehicle sales or use tax on its fire truck, command van, and breathing-air truck.

Texas exempted qualifying firefighting and emergency medical vehicles when bought by an independent volunteer fire department. It also exempted vehicles sold to or used by a public agency when operated with the required exempt license plates.

The refinery fit neither category. It was a private business, not a state or local public agency and not an independent volunteer fire department, so no similar Chapter 152 exemption applied.

The public STAR subject label for this accession mentions dollies and axles, but the ruling body does not decide that issue. This page follows the document's actual subject and holding: "Fire Truck, Command Van, Breathing Air Truck."

What this means for you

Private industrial facilities

Using a vehicle for firefighting or emergency readiness does not by itself create exemption. The buyer's legal status is central under the exemptions discussed here.

Volunteer fire departments

Section 152.087 covered qualifying vehicles purchased, rented, or used by a volunteer fire department meeting the statutory definition, including its compensation and organizational conditions.

Public agencies

The letter tied the public-agency exemption to operation with exempt plates under the cited Transportation Code provisions.

Common questions

Q: Was the fire truck exempt because it was used exclusively for firefighting?

A: No. The private refinery did not qualify as the exempt purchaser described by § 152.087.

Q: Was the refinery a public agency?

A: No. The letter said corporations, LLCs, partnerships, and similar private persons do not receive that exemption merely because they own emergency vehicles.

Q: Why does the filename mention dollies?

A: That came from conflicting index metadata. The operative letter is expressly about refinery fire and support vehicles, so the body controls the public subject and summary.

Citations and references

• Tex. Tax Code §§ 152.001(3), (7), (11), 152.021, 152.022, 152.082, 152.087
• Tex. Health & Safety Code § 773.003
• Tex. Transp. Code §§ 502.201, 502.206

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/200710001L

Original ruling text

October 24, 2007

Subject: Fire Truck, Command Van, Breathing Air Truck

Dear **:

This is in response to your e-mail question concerning whether Texas motor
vehicle sales and use tax is due on the purchase of a fire truck, command van,
and breathing air truck for use at a petrochemical refinery.

Response: A fire truck, command van, and breathing air truck purchased by any
person other than a public agency (a state, city, county, etc) or an
independent volunteer fire department is subject to Texas motor vehicle sales
and use tax pursuant to Chapter 152 of the Texas Tax Code.

Section 152.021 of the Texas Tax Code imposes a 6.25 percent motor vehicle
sales tax on any motor vehicle purchased in Texas; and Section 152.022 imposes
a 6.25 percent motor vehicle use tax on any motor vehicle purchased outside of
Texas and brought into Texas for use on the public highways of Texas by a Texas
resident or other person who is domiciled or doing business in Texas, unless
otherwise exempt. Section 152.001(3) defines a motor vehicle as any
self-propelled vehicle designed to transport persons or property on a public
highway; and a trailer and semi-trailer, including van, flatbed, tank,
dumpster, dolly, jeep, stinger, auxiliary axle, or converter gear.

Section 152.087 exempts, from the motor vehicle sales and use tax, the
purchase, rental, or use of a fire truck, emergency medical services vehicle as
defined by Section 773.003, Health and Safety Code, or other motor vehicle used
exclusively for fire-fighting purposes or for emergency medical services when
purchased by a volunteer fire department.

Section 152.001(11) defines a volunteer fire department as a company,
department, or association whose members receive no or nominal compensation and
which is organized for the purpose of answering fire alarms and extinguishing
fires or answering fire alarms, extinguishing fires, and providing emergency
medical services.

Section 152.082 exempts, from motor vehicle sales and use tax, the sale of a
motor vehicle to or use of a motor vehicle by a public agency if the motor
vehicle is operated with an exempt license plate issued under Section 502.201
or 502.206, of the Texas Transportation Code.

Section 152.001(7) defines a public agency as a department, commission, board,
office, institution, or other agency of the state of Texas or of a county,
city, town, school district, hospital district, water district, or other
special district or authority or political subdivision created by or under the
constitution or the statutes of the state of Texas.

There is no similar exemption for the purchase of a fire truck, command van,
and breathing air truck by a corporation, limited liability company,
partnership or any other person such as a petrochemical refinery that is not
organized as an independent volunteer fire department.

For online access to the sections of Chapter 152 of the Texas tax code noted
above go to: www.window.state.tx.us/taxinfo/mtr_veh/mv_su.html

Scroll down to "Statutes" and click to open.

I hope this information helps. If you have further questions, please e-mail
them to [email protected], or you may reach me by phone at (800)
531-5441, ext. 3-4986.

Our goal is to provide you with prompt, professional service. Please take a
moment to complete our on-line survey at
http://aixtcp.cpa.state.tx.us/surveys/tpsurv2/index.html

Sincerely,

Ken Koch
Tax Policy Division
Comptroller of Public Accounts