Who paid Texas tax on a doghouse or crewhouse trailer sold to a Texas customer, and could Oklahoma tax reduce it?

Plain-English summary

The Texas purchaser, not the Texas seller, owed the historical motor vehicle tax on a doghouse or crewhouse trailer.

The purchaser paid at the county tax assessor-collector's office when registering the trailer. The letter told a seller making the sale in Texas not to collect sales tax and instead to tell the customer that motor vehicle tax was due at registration.

An actual Oklahoma sale could reduce Texas liability if Oklahoma required a sales or excise tax based on the purchase price. The purchaser needed documentation of the amount paid.

What this means for you

This letter separated the seller's collection role from the purchaser's registration obligation. It also made documentation essential before applying an Oklahoma-tax credit.

Common questions

Q: Did the Texas seller collect sales tax?
A: No. The letter told the seller not to collect it.

Q: Could Oklahoma tax reduce the Texas amount?
A: Yes, if the trailer was actually sold there, Oklahoma required purchase-price tax, and the purchaser documented the amount paid.

Citations and references

• No statute or rule was cited in the letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/7906L2021D01

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, 78774

BOB BULLOCK

Comptroller

June 20, 1979

Dear Sirs:

We have been informed that you manufacture doghouse or crewhouse trailers and that you often sell these trailers to Texas customers. Since there has been some uncertainty on the part of one of your purchasers concerning their Texas tax liability, we wanted to make sure all parties involved understand the situation equally.

In Texas, doghouse trailers are subject to the Motor Vehicle Sales and Use Tax, which is 4% of the original purchase price. This tax is the obligation of the purchaser and is paid at the county tax assessor-collector's office at the time the trailer is registered. If the doghouse trailer is actually sold in Oklahoma and you are required to collect a sales or excise tax based on the purchase price, then your purchaser's Texas tax liability can be reduced by the amount of tax paid to Oklahoma. However, your purchaser would need some documentation of the actual amount of tax previously paid.

If you sell a doghouse trailer in Texas, you should not collect any sales tax. Rather, you should inform your customer that motor vehicle tax is due at the time the trailer is registered.

If you have any questions concerning this or any Texas tax situation, please write the Motor Vehicle Sales Tax Division, or call 512/475-6897.

Sincerely,

Victoria Bailey

Motor Vehicle Sales Tax