Ezel / Tax Rulings / TX
TX 9003L0994D08 Motor Vehicle Tax 1990-03-20

What requirements applied to Texas's historical residential child-care facility vehicle-tax exemption?

Short answer: The vehicle had to be purchased, used, or rented by a qualifying 24-hour residential child-care facility and used primarily to transport resident children. The facility said it met the licensing and mixed-resident-group requirements, so the letter told it to cite § 152.093 when applying for title.

Apply this to your situation

This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
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 an official 1990 Texas Tax Correspondence letter. Its practical answer accepted the facility's statement that it was licensed under Human Resources Code Chapter 42 and met the exemption requirements; the letter did not independently establish those facts. It predates modern Private Letter Ruling reliance terms and cannot bind the Comptroller for unrelated taxpayers. Section 152.093, licensing, facility classifications, resident-group standards, primary use, title procedures, and period terminology may have changed. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice.
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

The Texas Tax Correspondence Division described a motor vehicle tax exemption effective September 1, 1989 for qualifying residential child-care facilities.

The vehicle had to be purchased, used, or rented by the facility and intended primarily to transport children residing there under a state license. The facility had to be licensed for 24-hour care of both groups described in the letter, with both permitted to live together in one residential group.

The requester said its foster home met those requirements. The letter told it to reference Texas Tax Code § 152.093 when applying for title.

What this means for you

The result assumed the requester's licensing and facility facts were accurate. Verify current eligibility and title documentation.

Common questions

Q: What vehicle use was required?

A: Primary transportation of children residing at the licensed facility.

Citations and references

  • Texas Tax Code § 152.093 — cited for the exemption.
  • Texas Human Resources Code Chapter 42 — cited for facility licensing.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller March 20, 1990

Dear ***:

This is to follow up on our recent telephone conversation about
the exemption from motor vehicle tax for child care facilities.

Motor vehicles taxes do not apply to a motor vehicle purchased,
used, or rented by a qualified residential child care facility and
intended for use primarily in transporting the children residing
in the facility under a state license. This exemption was effec-
tive September 1, 1989.

A "qualified residential child-care facility" means a child-care
facility licensed under Human Resources Code 42 to provide
residential care 24 hours a day to both children who do not
require specialized services or treatment, and children who are
emotionally disturbed, and in which children or both classifica-
tions are permitted by the license to live together in a single
residential group.

During our telephone conversation you stated that the ***
Foster Home for Children is licensed under Human Resources Code 42
and meets the requirements for the exemption.

When applying for a title, you should reference Section 152.093 as
the reason for exemption.

This opinion is based on the facts presented. If there are addi-
tional or different facts, the opinion may change.

If you have any questions or need additional information, you may
call me toll free at 1-800-252-5555, extension 5-0330. The regular
number is 512/463-4600, or write me at Tax Correspondence, Comptroller
of Public Accounts.

Sincerely,
Bettie U. Peterson
Tax Correspondence Division

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