Which automobile, component, and accessory repairs did Texas treat as taxable under the 1984 repair law?

Plain-English summary

The Texas Comptroller said repair of a motor vehicle, a component, or a component accessory was not taxable under the new law, while repair of an accessory was taxable.

The letter defined four categories:

• An accessory was attached tangible personal property not essential to operating the vehicle.
• A component was a necessary part of the vehicle or one of its systems, including chassis or body parts.
• A component accessory was permanently affixed, aided cargo or passengers, or served operator or passenger convenience or comfort. Examples included a car radio, air conditioner, meat-van refrigerator, and concrete mixer.
• An equipment accessory was neither an essential component nor a component accessory and could be cargo transported by the vehicle, such as a welder, crane, or compressor.

What this means for you

Automotive repair shops

The historical answer depended on classifying the repaired item, not merely on the item being attached to a vehicle.

Car-audio businesses

The letter specifically listed a car radio as a component accessory, whose repair it said was not taxable.

Accountants and tax professionals

Use the source's definitions only as historical guidance. Confirm current vehicle-repair and accessory rules before classifying a modern product.

Common questions

Q: Was repair of the vehicle itself taxable?
A: No.

Q: Was repair of a component accessory taxable?
A: No.

Q: Was repair of an accessory taxable?
A: Yes.

Q: How did the letter classify a car radio?
A: As a component accessory.

Citations and references

• The letter cites no statute or administrative rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8410L0597D05

Original ruling text

October 31, 1984

Dear **:

Thank you for your letter seeking details on the new law on repairs
to an automobile.

The new law does not impose a tax on the repair of an automobile, a
component or a component accessory. The repair of an accessory is
taxable, however.

An accessory is defined as:

• tangible personal property which is attached to a motor vehicle
  but which is not essential to the operation of the motor vehicle.

Component - a part of a motor vehicle or a motor vehicle system such
as the suspension, electrical or cooling vehicle which is necessary
to the proper operation of a motor vehicle and includes any part of
the chassis or body.

Component accessory - a permanently affixed part of a motor vehicle
which is not essential to the proper operation of the vehicle but
which assists or aids in the transportation of the vehicle's cargo or
passengers or which is used for the loading or unloading of the cargo
or passengers and accessories for the convenience or comfort of the
operator or passengers of a motor vehicle. Examples are a car radio,
air conditioner, refrigerator on a meat van, or a concrete mixer.

Equipment accessory - a part of a motor vehicle which is neither an
essential component, nor a component accessory but which may be cargo
that the vehicle transports, such as a welder, crane, compressor or
other type equipment.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have additional questions. You
may write me, call toll free 1-800-252-5555 from anywhere in Texas
or phone 512/475-1931.

Sincerely,

Dot Burchard
Tax Policy Division