Were automobile hand controls and a vehicle modified for an orthopedically handicapped person exempt from Texas tax?

Plain-English summary

This October 23 letter corrected an earlier description of automobile hand brakes from a "prosthetic" device to an "orthopedic" device without changing the tax result. The controls were exempt when they enabled people with missing, damaged, or nonfunctioning organs or appendages to operate a vehicle. The purchaser was to give the vendor an exemption certificate.

The letter separately addressed the vehicle. Texas Tax Code § 152.086 exempted the purchase of a motor vehicle that had been or would be modified for operation by, or transportation of, an orthopedically handicapped person. Rule 3.84 supplied the exemption and documentation requirements.

What this means for you

The opinion covered two distinct exemptions: one for qualifying orthopedic hand controls and one for a qualifying modified vehicle. Each depended on the stated disability-related use and required documentation.

Common questions

Were the hand brakes exempt? Yes, as orthopedic devices under the stated use. Was an exemption certificate required for the controls? Yes. Could the vehicle itself be exempt? Yes, if it had been or would be modified for the qualifying operation or transportation purpose.

Citations and references

• Texas Tax Code § 152.086 (modified motor vehicles)
• Rule 3.84 (exemption and documentation requirements)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9110L1136F01

Original ruling text

October 23, 1991

Dear ****:

My original letter of October 7, 1991, contains a minor error
which does not affect the taxability of the hand brakes. I
erroneously referred to the hand brakes as a "prosthetic" device
instead of an "orthopedic" device. I will therefore restate
my answer with the correction.

You first addressed the exemption for hand brakes for an
automobile. Hand brakes would be exempt as an orthopedic device
when the device is used to allow persons with missing, damaged,
or non-functioning organs or appendages to operate the vehicle.
An exemption certificate should be issued to the vendor.

Secondly, you asked about the taxability of a vehicle purchased
by an orthopedically handicapped person. Section 152.086 of
the Texas Tax Code provides an exemption from motor vehicle
tax for the purchase of a motor vehicle which has been or will
be modified for operation by, or for the transportation of, an
orthopedically handicapped person. Enclosed is a copy of Rule
3.84, which outlines the requirements for exemption and
documentation needed.

This opinion is based on the facts presented. If there are
additional or different facts, the opinion could change.

If you have any questions, please don't hesitate to write the
Tax Administration Division or call toll free at 1-800-252-5555.

Sincerely,

Joan Hale
Tax Administration Division