Ezel / Tax Rulings / TX
TX 7106L2021A02 Motor Vehicle Tax 1971-06-28

How did Texas move large mobile-home sales from limited sales tax to motor vehicle tax on July 1, 1971?

Short answer: Effective July 1, 1971, mobile homes exceeding eight feet in width and 36 feet in length moved from historical limited sales tax to motor vehicle sales and use tax collected by the county assessor-collector. A seller holding a limited-sales-tax permit only for mobile-home sales filed the June-quarter final return and closed the permit; sellers of other taxable items retained it.

Apply this to your situation

This page answers the general question as of 1971. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1971
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 a June 28, 1971 general merchant letter about a July 1, 1971 law change. STAR expressly warns that the four-percent rate is not current. Mobile-home size definitions, tax classification, county collection, limited-sales-tax permits, final returns, filing periods, mixed sales, and permit closure may also have changed. The instructions specifically address sellers whose permit existed solely for mobile-home sales. STAR documents may no longer represent current policy even when not marked superseded. 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

Texas moved the described large mobile homes from limited sales tax to motor vehicle tax effective July 1, 1971.

The new treatment covered mobile homes exceeding eight feet in width and 36 feet in length. The county tax assessor-collector collected the historical motor vehicle tax like other vehicles.

Those mobile homes had been under limited sales tax since April 1, 1970. A seller with a permit only for mobile-home sales filed the quarter ending June 30, 1971 as final, returned the permit, and closed the account. A seller that also sold other limited-sales-tax items kept the permit.

What this means for you

The letter combined a product-tax reclassification with one-time permit and final-return instructions for affected sellers.

Common questions

Q: When did motor vehicle tax begin?
A: July 1, 1971.

Q: Who collected it?
A: The county tax assessor-collector.

Q: Did every seller close its limited-sales-tax permit?
A: No. Sellers of other taxable items retained it.

Citations and references

  • No statute or rule was cited in the letter.

Source

Original ruling text

ALERT: The tax rates cited in this article are no longer the current motor vehicle sales tax

or motor vehicle rental tax rates.

COMPTROLLER OF PUBLIC ACCOUNTS

STATE OF TEXAS

AUSTIN

ROBERT S. CALVERT

COMPTROLLER June 28, 1971

Gentlemen:

Effective July 1, 1971 mobile homes which exceed eight (8) feet in width and thirty-six (36) feet in length shall be taxed under the Motor Vehicle Sales and Use Tax Act at the rate of four percent (4%) and the tax shall be collected by the Tax Assessor-Collector in the same manner as all other motor vehicles.

If you hold a Texas Limited Sales and Use Tax Permit and make no other sales after June 30, 1971, of items subject to the limited sales and use tax, your permit should be returned with your final sales and use tax return for the quarter ending June 30, 1971 (please mark the return final). The permit will be closed out. You are required to file a final report on your sales for the quarter ending June 30, 1971 (period April 1, 1971 through June 30, 1971).

On April 1, 1970 mobile homes in excess of eight (8) feet in width or thirty-six (36) feet in length were placed under the Texas Limited Sales and Use Tax Act; however, the recent Legislature has removed these vehicles from the Texas Limited Sales and Use Tax Act and placed them under the Motor Vehicle Tax effective July 1, 1971.

It is most important that you have your Limited Sales Tax Permit closed out if you have the permit for the sole purpose to cover mobile home sales. If you make sales of other items subject to the limited sales tax you must retain your permit.

Very truly yours,

Robert S. Calvert

Comptroller of Public Accounts

Get today's answer for your situation

You just read a 1971 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.