Ezel / Tax Rulings / TX
TX 8509L0659E12 Motor Vehicle Tax 1985-09-03

Could a storage-trailer lessor buy repair parts tax-free for resale when attaching them to rented or leased trailers?

Short answer: Yes under the rule described. Storage trailers were motor vehicles taxed under Chapter 152, but their repair parts were taxable items governed by Chapter 151. Rule 3.285(a) allowed resale treatment when parts were bought solely to be attached to property that would be resold, rented, or leased. The trailer itself did not also have to be taxable under Chapter 151, and repair parts were distinct from accessories under Rule 3.348(b).

Apply this to your situation

This page answers the general question as of 1985. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1985
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 1985 Texas Comptroller taxpayer-response letter applying Chapters 151 and 152 and Rules 3.285 and 3.348 as then in effect. Current definitions of motor vehicle, repair part, accessory, sale for resale, rental, and lease may differ. Although STAR's subject metadata mentions transportation charges, the body never discusses them, so this page does not report a transportation-charge holding. STAR documents may no longer represent current policy even when not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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

Repair parts purchased solely for attachment to storage trailers that would be rented or leased qualified for historical sale-for-resale treatment.

The trailers themselves were classified as motor vehicles and taxed under Chapter 152. The repair parts, however, were taxable items governed by Chapter 151.

Rule 3.285(a) defined a sale for resale to include a taxable item purchased solely for resale, rental, or lease in its purchased condition or as an attachment to another taxable item. The Comptroller said the property receiving the part did not itself have to be taxed under Chapter 151 when later rented or leased.

The letter warned against confusing repair parts with accessories added to motor vehicles under Rule 3.348(b). They were not the same and received different sales-tax treatment.

STAR's subject line also mentions transportation charges, but the body gives no facts or answer about them.

What this means for you

Trailer lessors

The purchase purpose mattered: the parts had to be acquired solely for attachment to property that would be rented or leased.

Repair parts versus accessories

Classification controlled the rule. The letter specifically rejected treating all repair parts as motor-vehicle accessories.

Transportation charges

This document provides no verified transportation-charge rule despite the metadata label.

Common questions

Q: Were storage trailers treated as motor vehicles?
A: Yes, under Chapter 152.

Q: Which chapter governed the parts?
A: Chapter 151.

Q: Did the trailer itself need to be taxed under Chapter 151?
A: No.

Citations and references

  • Texas Tax Code ch. 152 — storage trailers as motor vehicles
  • Texas Tax Code ch. 151 — sales tax treatment of repair parts
  • Texas Comptroller Rule 3.285(a) — sale-for-resale definition
  • Texas Comptroller Rule 3.348(b) — accessories added to motor vehicles, distinguished from repair parts

Source

Original ruling text

September 3, 1985

Dear ***:

Thank you for your letter of August 20, 1985, concerning the taxability
of repair parts purchased by your client to repair storage trailers,
some which are rented and some leased.

The storage trailers are classified as motor vehicles and are taxed
under chapter 152 of the Texas Tax Code.

The repair parts for the trailers are taxed under chapter 151 of the Tax
Code. Section (a) of Rule 3.285 states that a sale for resale is not
taxable and further defines a sale for resale as "a sale of a taxable
item to any purchaser for the sole purpose of reselling, leasing or
renting it ... in the form or condition in which it is purchased or as an
attachment to ... other taxable items". (Emphasis added).

The taxable item to which the repair parts are attached need not be
subject to tax under Chapter 151 when resold, leased or rented.

The confusion about the taxability of repair parts likely comes from
section (b) of Rule 3.348 - Accessories Added to Motor Vehicles.
However, repair parts and accessories are not one and the same and are
treated differently for sales tax purposes when purchased for rented and
leased motor vehicles.

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas.You may write us at the
Tax Administration Division.

Sincerely,

Tax Policy
Tax Administration Division

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