Could a company's volunteer fire department qualify for Texas motor vehicle and sales tax exemptions?

Plain-English summary

A company's volunteer fire department qualified for the historical vehicle exemption if it was an identifiable entity within the company and employee firefighters received no extra compensation for firefighting.

Vehicles purchased for firefighting or emergency medical services were exempt under former article 6.09(2), with the transaction documented on the vehicle tax affidavit.

The attached sales-tax letter separately exempted tangible personal property used by the identifiable volunteer department through an exemption certificate. It warned that this sales-tax exemption did not itself cover motor vehicles, motor fuel, or other separately taxed items.

What this means for you

Organizational identity, volunteer compensation, purpose of the purchase, and the applicable tax statute each mattered.

Common questions

Q: Could paid company employees volunteer?
A: Yes if they received no additional firefighting compensation.

Q: Did the sales-tax certificate alone exempt vehicles?
A: No.

Citations and references

• Former article 6.09(2) — motor vehicle exemption
• Former Ruling .007 — sales-tax exemption certificate form

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/7908L2024B03

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller August 22, 1979

Dear ***:

Harry Rogers in our State Sales Tax Division forwarded a copy of your
recent letter to us - requesting a ruling as to whether CORP A's
volunteer
fire department is exempt from tax on the purchase of motor vehicles
under
the provisions of Art. 6.09(2).

As long as your CITY X volunteer fire department is set up as a identi-
fiable entity within CORP A, and CORP A employees who man the fire
depart-
ment receive no additional compensation for their fire fighting work,
then
motor vehicles purchased by the fire department for fire fighting
purposes
or for emergencies medical services will be exempt from motor vehicle
tax.

When registering a motor vehicle under these conditions, section 5 of the
Seller, Donor or Trader's Affidavit (sales tax Affidavit) should be
completed.
I have enclosed an illustration of the way to document such a
transaction.

If you have any other motor vehicle sales tax question, please write the
Motor vehicle Sales Tax Division or call 1-800-252-5555 toll free from
anywhere in Texas.

Sincerely,
Victoria Bailey
Motor Vehicle Sales Tax Division

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller August 17, 1979

Dear ***:

In reply to your letter of August 9, 1979, volunteer fire departments are
exempt from Texas Limited Sales, Excise and Use Tax on the purchase of
tangible personal property for the use of the department. Your volunteer
fire department at the CITY X Plant must be set up as an identifiable
entity within the CORP A in order to qualify for the exemption.

Volunteer fire departments making purchases of tangible personal prop-
erty for the use of the department must issue an exemption certificate
in lieu of the tax to the seller.

The exemptions authorized by this decision are applicable to items
subject
to the Limited Sales, Excise and Use Tax Act only. It does not extend to
Motor Vehicles, Motor Fuel or other items which are taxed under other
pro-
visions of the statutes. Your request for exemption from Motor Vehicles
has been referred to the Motor Vehicle Tax Division.

The enclosed Ruling No. .007, contains an acceptable form of an exemption
certificate which may be reproduced in any quantity needed, as this
office
does not furnish a supply.

Exemption certificates do not require a number to be valid. The
Comptroller
of Public Accounts does not issue exemption numbers.

If your organization makes any sales of taxable items, you must obtain a
Sales Tax Permit, collect the tax on all taxable sales, file reports and
remit the tax each quarter. The Comptroller's Field Office in your area
is located at 2525 Murworth, Ste. 122, Houston, Texas 77054, telephone
number 661-7123.

If I may be of further service, please telephone our toll-free number,
1-800-252-5555.

Very truly yours,
Harry F. Rogers
Sales Tax Division