Ezel / Tax Rulings / TX
TX 9904401L Motor Vehicle Tax 1999-04-30

Could a Texas lessor issue a resale certificate for a body and liftgate installed on an apportioned truck leased for interstate use?

Short answer: Yes. Because the completed truck was a lease vehicle registered tax-free for apportioned interstate use, the lessor could issue a resale certificate to the company that sold and installed the body and liftgate instead of paying sales tax on those items.

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 facts presented. It dates from 1999, predates modern Private Letter Ruling reliance terms, and cannot be treated by unrelated taxpayers as binding protection. Interstate-vehicle definitions, International Registration Plan rules, resale-certificate requirements, and lease taxation 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 allowed a lessor to issue a resale certificate when buying a body and liftgate installed on a truck chassis that would become a tax-free registered interstate lease vehicle.

The lessor contracted separately with one company for the chassis and another for the body and liftgate. After installation, the completed truck would be delivered to the lessor and leased to a customer for interstate use with apportioned registration.

Because it was a lease vehicle, the lessor could give the body-and-liftgate supplier a resale certificate instead of paying sales tax on that purchase.

For Chapter 152 purposes, the letter defined an interstate motor vehicle as one operated in Texas and another state or country whose registration fees could be apportioned if it were registered in a jurisdiction belonging to the International Registration Plan.

What this means for you

Truck leasing companies

The historical result covered a separately purchased chassis and installed body/liftgate for a vehicle leased and registered for apportioned interstate use.

Interstate carriers

The letter tied interstate status to multi-jurisdiction operation and eligibility for apportioned registration under the International Registration Plan.

Truck body installers

The lessor provided the resale certificate to the company selling and installing the body and liftgate.

Common questions

Q: Was tax due on the body and liftgate purchase?

A: The lessor could issue a resale certificate instead.

Q: Why?

A: The completed vehicle was a lease vehicle registered tax-free for apportioned interstate use.

Q: Did the lessor buy the chassis and body from the same company?

A: No. The contracts were with separate companies.

Citations and references

  • Texas Tax Code Chapter 152

Source

Original ruling text

April 30, 1999

Dear **:

Thank you for your request for sales tax information.

A bobtruck will be apportioned for interstate use. You buy the chassis from
COMPANY B, then the chassis is sent from there to COMPANY A, where a body and
liftgate are installed. The vehicle is then delivered to you, and you are
leasing it to a customer for interstate use. You contract with COMPANY B for
the chassis and COMPANY A for the body and liftgate. The motor vehicle is
registered tax free as an interstate vehicle. You ask if tax is due on your
purchase of the body and liftgate.

Response: Since the vehicle is a lease vehicle, you (as lessor) may issue a
resale certificate to COMPANY A in lieu of sales tax when you purchase the body
and liftgate.

For purposes of Chapter 152, "an interstate motor vehicle" means a motor
vehicle that is operated in this state and another state or country and for
which registration fees could be apportioned if the motor vehicle were
registered in a state or province of a country that is a member of the
International Registration Plan.

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

If you have any questions, please do not hesitate to call one of our tax
specialists toll free at 1-800-252-5555. The direct number is 512/463-4600.
You may also write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Joan Hale
Tax Policy Division

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