Ezel / Tax Rulings / TX
TX 9006L1029G12 Sales and/or Use Tax (State,Local,MTA) 1990-06-27

Did Texas limited sales and use tax or motor-vehicle tax apply to off-road vehicles?

Short answer: Off-road vehicles were subject to limited sales and use tax plus applicable local tax. If an off-road vehicle was titled, the title documents should claim the motor-vehicle-tax exemption as “designed for off-road use.” Motor-vehicle tax instead applied to motorcycles, mopeds, and other vehicles titled and registered for street use.

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 Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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

Off-road vehicles were subject to Texas limited sales and use tax, together with any applicable local tax.

Some dirt bikes and other off-road vehicles could still be titled. When they were, the title application, tax affidavit, and tax receipt should state “designed for off-road use” in the motor-vehicle-tax exemption space.

Motor-vehicle tax applied instead to motorcycles, mopeds, and any other vehicle titled and registered for street use.

Common questions

Did limited sales and use tax apply to off-road vehicles? Yes.

Did applicable local tax also apply? Yes.

Did titling an off-road vehicle necessarily make motor-vehicle tax due? No. The letter instructed the applicant to claim the designed-for-off-road-use exemption.

What vehicles were subject to motor-vehicle tax? Motorcycles, mopeds, and other vehicles titled and registered for street use.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

BOB BULLOCK
Comptroller

June 27, 1990

Dear **:

Thank you for your recent letter regarding the taxability of off
road vehicles.

All "off-road" vehicles are subject to the limited sales and use
tax. When the limited sales tax is due, any applicable local tax
is also due.

Some "dirt bikes" and "off-road" vehicles will be titled. When
they are, the notation "designed for off-road use" should be in-
serted in the space for claiming an exemption from motor vehicle
tax on both the application for title and tax affidavit and the
tax receipt.

The motor vehicle tax is due on motorcycles, mopeds, and any oth-
er vehicle titled and registered for street use.

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, Comp-
troller of Public Accounts.

Sincerely,
Bettie U. Peterson
Tax Correspondence Division

Get today's answer for your situation

You just read a 1990 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.