How did Texas distinguish a purpose-built concrete pump from a pump attached to a conventional truck chassis, especially when supplied with an operator?

Plain-English summary

The Texas Comptroller distinguished a purpose-built mobile concrete pump from pumping equipment mounted on a conventional truck chassis.

A unit built as one movable piece of specialized equipment was taxed under Chapter 151 limited sales tax. But a conventional cab chassis—such as a Mack—with a pump attached was a motor vehicle taxed under Chapter 152.

Supplying the pump truck with a driver or operator did not create a motor vehicle rental because the customer did not receive exclusive use, regardless of how the charge was billed. Limited Sales Tax Administrative Rule 3.294 therefore did not apply to that operator-service arrangement.

The business owed motor vehicle sales tax on a Texas purchase of the cab chassis or completed pump truck, or motor vehicle use tax when an out-of-state purchase was later operated in Texas. If it bought the pumping accessory separately from the chassis, the accessory bore limited sales tax and the chassis bore motor vehicle sales tax.

What this means for you

Concrete pumping companies

The historical classification depended on whether the unit was purpose-built specialized equipment or a conventional highway truck with an accessory.

Equipment manufacturers

Separate purchases of the chassis and pump split the taxes between Chapters 152 and 151.

Construction contractors

An operator-supplied service was not a vehicle rental under this letter because the customer lacked exclusive use.

Common questions

Q: How was a purpose-built mobile pump taxed?

A: Under Chapter 151.

Q: How was a pump on a conventional truck chassis taxed?

A: Under Chapter 152 as a motor vehicle.

Q: Did supplying a driver create a rental?

A: No.

Q: What if the pump and chassis were bought separately?

A: Limited sales tax applied to the pump and motor vehicle tax to the chassis.

Citations and references

• Texas Tax Code Chapters 151 and 152
• Limited Sales Tax Administrative Rule 3.294

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=MVT
• Opinion: https://star.comptroller.texas.gov/view/9805478L

Original ruling text

May 7, 1998

Dear **:

On October 16, 1995, Mr. John Fitzgibbons of this office wrote to you
concerning the taxability of concrete pumps. The purpose of this letter is to
provide additional information.

Mr. Fitzgibbons letter assumes that your unit is built as a single unit and is
moveable specialized equipment taxed under Chapter 151 of the Tax Code.
However, if any of your units are conventional cab chassis with concrete pumps
attached to them, the unit is considered a motor vehicle and taxed under
Chapter 152. This would be the case if, for example, the pump accessory is
attached to a Mack or similar cab chassis.

Under Chapter 152, exclusive use must be given to your customer in order for a
motor vehicle rental to occur. In situations where you provide the
driver/operator exclusive use is not given regardless of the manner of billing.
Under the motor vehicle tax law, a rental has not occurred. Limited sales tax
administrative rule 3.294 is not appropriate. ** will owe motor
vehicle sales tax on a Texas purchase of a cab chassis or a cab chassis with a
pumping unit attached, or motor vehicle use tax on a motor vehicle purchased
outside this state and then operated in Texas. If ** purchases the
pumping accessory in a separate transaction from the cab chassis, limited sales
tax is due on the pumping accessory and motor vehicle sales tax is due on the
cab chassis.

This opinion is based on the information presented. If there is additional
information, the opinion could change.

If you have any questions, please contact me by calling 1-800-531-5441,
extension 3-4684, toll free. You may also write to the Tax Policy Division.

Sincerely,

Curt Swenson
Tax Policy Division