Ezel / Tax Rulings / TX
TX 9006L1030C01 Motor Vehicle Tax 1990-06-29

When did an apprehended vehicle count as doing business in Texas for motor vehicle tax?

Short answer: The letter said an apprehended vehicle was taxable if it was doing business in Texas. Examples included Texas-to-Texas transport, maintaining Texas facilities, having a Texas representative, delivering the seller's goods in its own vehicles, or providing any service in Texas.

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 Tax Correspondence letter dated June 29, 1990; STAR metadata lists June 1, but the printed date controls here. It gives examples rather than an exhaustive legal definition and does not explain why the vehicle was apprehended. It predates modern Private Letter Ruling reliance terms and cannot bind the Comptroller for unrelated taxpayers. Motor vehicle tax, nexus, doing-business standards, enforcement, and interstate-commerce rules 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 said an apprehended vehicle was subject to motor vehicle tax if it was doing business in Texas.

Examples included transporting people or property between two Texas points; owning, leasing, or maintaining Texas storage, delivery, or service facilities; having a representative or solicitor in Texas; delivering the seller's goods into Texas in its own vehicles; and providing any service in Texas.

What this means for you

The examples were common indicators, not an exhaustive test. Verify current vehicle-tax, nexus, and interstate-operation rules.

Common questions

Q: Did Texas residence control?

A: No. The letter included providing any service in Texas whether or not the provider was a Texas resident.

Citations and references

  • The letter cited no statute or administrative rule by number.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller

June 29, 1990

Dear **:

This is in response to your recent letter requesting information
about the collection of motor vehicle sales tax on an apprehended
vehicle. Mr. Swenson has asked me to respond to your letter.

Apprehended vehicles are subject to the motor vehicle tax if the
vehicle is considered to be "doing business" in Texas.

Some of the most common activities that constitute "doing busi-
ness" in Texas are:

  1. Transporting persons or property from one point in
    Texas to another point in Texas.

  2. Owning, leasing or maintaining facilities in Texas
    for storage, delivery or service.

  3. Having a representative, agent, salesman, canvasser,
    or solicitor in Texas.

  4. Delivering goods sold by an entity into Texas in ve-
    hicles, operated by the entity.

  5. Providing any service in Texas (whether or not you
    are a Texas resident).

As with any other situation, you are welcome to call upon this of-
fice to help determine if the vehicle is "doing business" here and
required to pay the tax.

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, Comptrol-
ler of Public Accounts.

Sincerely,
Bettie U. Peterson
Tax Correspondence Division

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