Ezel / Tax Rulings / TX
TX 9808704L Motor Vehicle Tax 1998-08-05

Could a Texas maquiladora exemption certificate be used to rent motor vehicles or trailers without motor vehicle rental tax?

Short answer: No. The maquiladora exemption belonged to Chapter 151 limited sales tax, which generally covered tangible personal property other than motor vehicles. Chapter 152 governed motor vehicles and contained no similar exemption, so Texas rentals of motor vehicles, including trailers, were taxable on rental receipts.

Apply this to your situation

This page answers the general question as of 1998. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1998
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 letter issued on the specific certificate question presented. It dates from 1998, predates modern Private Letter Ruling reliance terms, and cannot be treated by unrelated taxpayers as binding protection. Chapters 151 and 152, maquiladora exemptions, certificate rules, trailer classifications, and rental-receipts taxation may have changed, so verify current Texas law before relying on it. 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 Comptroller said a Texas maquiladora exemption certificate could not exempt a motor vehicle rental.

The maquiladora exemption was available under Chapter 151 limited sales tax, which covered most tangible personal property other than motor vehicles. Motor vehicles were instead taxed under Chapter 152, and the letter said that chapter contained no similar exemption.

Motor vehicles rented in Texas—including trailers—were therefore taxable on their rental receipts.

What this means for you

Maquiladoras and cross-border businesses

An exemption certificate under one tax chapter did not automatically carry into the separate motor vehicle tax chapter.

Vehicle and trailer rental companies

The historical letter required tax on rental receipts despite presentation of the maquiladora certificate.

Common questions

Q: Did the Chapter 151 certificate apply to the rental?

A: No.

Q: Why not?

A: Motor vehicles were governed by Chapter 152, which the letter said lacked a similar exemption.

Q: Were trailers included?

A: Yes.

Citations and references

  • Texas Tax Code Chapters 151 and 152

Source

Original ruling text

August 5, 1998

Dear **:

Thank you for your inquiry concerning the use of a Texas Maquiladora Exemption
Certificate on a motor vehicle rental.

The maquiladora exemption is available under Chapter 151 of the Tax Code,
limited sales tax. This covers most tangible personal property other than
motor vehicles. Motor vehicles are taxed under Chapter 152 that contains no
similar exemption provision.

Motor vehicles, including trailers, rented in Texas are subject to tax on the
motor vehicle rental receipts.

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

If you have any questions, please contact one of our tax specialist by calling
1-800-252-1382, toll free.

Sincerely,

Curt Swenson
Tax Policy Division

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