Was a truck rental to a Texas independent school district subject to the historical gross rental receipts tax?

Plain-English summary

Renting a truck to an independent school district was exempt from the historical gross rental receipts tax.

The letter classified the district as a public agency under former article 6.03(G). Former article 6.09(4) exempted a motor vehicle rental to a public agency.

For the lessor's minimum gross rental receipts calculation, the tax that would have been remitted without the exemption was treated as though it had been remitted.

What this means for you

The exemption removed tax from the district's rental while preserving a deemed amount for the lessor's separate historical minimum-tax calculation.

Common questions

Q: Did the letter decide a university rental?
A: No. The operative body addresses an independent school district.

Q: Did the exempt rental count toward the minimum-tax calculation?
A: Yes. The otherwise-remittable tax was deemed remitted for that purpose.

Citations and references

• Texas Tax-General Annotated art. 6.03(G)
• Texas Tax-General Annotated art. 6.09(4)
• Texas Tax-General Annotated art. 6.01(6)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/7905L2023C12

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller May 18, 1979

Dear ***:

Thank you for your letter requesting information about the application of
Gross Rental Receipts Tax to an independent school district, which has
come
to me for reply.

As *** informed you, an independent school district is a public
agency
under TEX. TAX.-GEN. ANN. art. 6.03(G). the rental of a motor vehicle to
a
public agency is exempt from Gross Rental Receipts Tax:

(4) The taxes imposed by this Chapter do not apply to the rental of
a motor vehicle to a public agency. The tax which would have been re-
mitted on gross rental receipts without this exemption shall be deemed
to have been remitted for the purpose of calculating the minimum gross
rental receipts tax due and payable to the Comptroller under the provi-
sions of Section (6) of Article 6.01.

TEX. TAX. -GEN. ANN. art. 6.09 (4). Therefore, the rental of a truck to
the
*** Independent School District is not subject to 4% Gross
Rental Receipts
Tax.

I have enclosed a copy of the statute for your further information. I
hope this
information clears up any misunderstanding which may have arisen.

If you have any further questions, you may write the Motor Vehicle Sales
Tax
Division or call toll free 1-800-252-5555.

Sincerely,
Patricia Brockway
Division Attorney
Motor Vehicle Sales Tax Division