Ezel / Tax Rulings / TX
TX 9901082L Motor Vehicle Tax 1999-01-18

Were Texas electric cooperatives exempt from motor vehicle sales tax without using a particular type of license plate?

Short answer: Yes. Cooperatives formed under the Electric Cooperative Corporation Act were exempt from motor vehicle sales tax, and no particular license plate was required. The 1999 letter also allowed recovery of tax paid in error within the prior four years using a refund form and county tax receipts.

Apply this to your situation

This page answers the general question as of 1999. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1999
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 cooperative facts presented. It dates from 1999, cites an older statutory compilation, predates modern Private Letter Ruling reliance terms, and cannot be treated by unrelated taxpayers as binding protection. The exemption, license-plate rules, refund form, documentation, and four-year period may have changed, so verify current law. 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 cooperatives formed under the Electric Cooperative Corporation Act were exempt from motor vehicle sales tax.

Unlike certain similar public agencies, an electric cooperative did not need a particular type of license plate to qualify.

The letter also provided a refund route for motor vehicle tax paid in error on earlier purchases. The cooperative was to submit the refund form and copies of county tax assessor-collector receipts. Tax paid within the previous four years could be recovered under the 1999 procedure.

What this means for you

Electric cooperatives

The historical exemption depended on formation under the Electric Cooperative Corporation Act, not use of a special plate.

Fleet managers and cooperative accountants

Keep formation records and county tax receipts. The letter required receipts with the refund claim.

County tax assessor-collectors

The Comptroller said no particular license plate was an exemption condition for these cooperatives.

Common questions

Q: Were qualifying electric cooperatives exempt?

A: Yes.

Q: Was a special license plate required?

A: No.

Q: How far back did the letter allow refunds?

A: Four years.

Q: What proof accompanied the refund form?

A: Copies of tax receipts issued by the county tax assessor-collector.

Citations and references

  • Tex. Rev. Civ. Stat. Ann. art. 1528, § 30

Source

Original ruling text

January 18, 1999

Dear Mr. **:

Thank you for your letter concerning the taxability of **, purchase
of motor vehicles.

**, and other Co-ops formed under the Electric Cooperative
Corporation Act (Tex.Rev.Civ.Stat.Ann art. 1528, Sec. 30) are exempt from motor
vehicle sales tax. Unlike similar public agencies, there is no requirement
that a particular type license plate be used in order to qualify for the
exemption.

Under separate cover I am sending you a motor vehicle sales tax refund claim
form to recover taxes paid in error on past purchases of motor vehicles..
Please return the form and copies of the tax receipts issued by the local
County Tax Assessor-Collector to this office. Taxes paid within the last four
years may be recovered.

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 of our Tax Specialist at 1-800-252-1382, toll
free. My direct phone is 1-800-531-5441, extension 3-4684.

Sincerely,

Curt Swenson
Tax Policy Division

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