34 Tex. Admin. Code § 3.481 - Imposition and Collection of Manufactured Housing Tax
(a) Definitions. The following words and
terms, when used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1)
Charitable or eleemosynary organization--A nonprofit organization devoting all
or substantially all of its activities to the alleviation of poverty, disease,
pain, and suffering by providing food, clothing, drugs, treatment, shelter, or
psychological counseling directly to indigent or similarly deserving members of
society with its funds derived primarily from sources other than fees or
charges for its services. If the organization engages in any substantial
activity other than the activities described in this section, it will not be
considered as having been organized for purely public charity, and therefore,
will not qualify for exemption under this section. No part of the net earnings
of the organization may inure to the benefit of any private party or individual
other than as reasonable compensation for services rendered to the
organization. Some examples of organizations that do not meet the requirements
for exemption under this definition are fraternal organizations, lodges,
fraternities, sororities, service clubs, veterans groups, mutual benefit or
social groups, professional groups, trade or business groups, trade
associations, medical associations, chambers of commerce, and similar
organizations. Even though not organized for profit and performing services
which are often charitable in nature, these types of organizations do not meet
the requirements for exemption under this section.
(2) Educational organization--A nonprofit
organization or governmental entity whose activities are devoted solely to
systematic instruction, particularly in the commonly accepted arts, sciences,
and vocations, and which has a regularly scheduled curriculum, using the
commonly accepted methods of teaching, a faculty of qualified instructors, and
an enrolled student body or students in attendance at a place where the
educational activities are regularly conducted. An organization that has
activities consisting solely of presenting discussion groups, forums, panels,
lectures, or other similar programs, may qualify for exemption under this
section, if the presentations provide instruction in the commonly accepted
arts, sciences, and vocations. The organization will not be considered for
exemption under this section if the systematic instruction or educational
classes are incidental to some other facet of the organization's activities. No
part of the net earnings of the organization may inure to the benefit of any
private party or individual other than as reasonable compensation for services
rendered to the organization. Some examples of organizations that do not meet
the requirements for exemption under this definition are professional
associations, business leagues, information resource groups, research
organizations, support groups, home schools, and organizations that merely
disseminate information by distributing printed publications. Entities that are
defined in Education Code, §
61.003, as
"institutions of higher education" are recognized for exemption under this
section. Included in the definition of "institutions of higher education" are
state and private universities and colleges.
(3) Exempt use--A use to promote the purpose
for which an exempt organization was created.
(4) House trailer--A trailer designed for
human habitation, including a park model as defined in this section. The term
does not include mobile offices as defined in §
3.306 of this title (relating to
Sales of Mobile Offices, Oilfield Portable Units, Portable Buildings,
Prefabricated Buildings, and Ready-Built Homes); manufactured homes as defined
in this section; or portable buildings, prefabricated buildings, and
ready-built homes, as defined in §
3.306 of this title.
(5) HUD-code manufactured home--A structure
constructed on or after June 15, 1976, according to the rules of the United
States Department of Housing and Urban Development; transportable in one or
more sections, which in the traveling mode is eight body feet or more in width
or 40 body feet or more in length, or when erected on site is 320 or more
square feet; built on a permanent chassis and designed to be used as a dwelling
with or without a permanent foundation when connected to the required
utilities; and which includes the plumbing, heating, air conditioning, and
electrical systems.
(6)
Industrialized housing--A residential structure that is designed for the
occupancy of one or more families; constructed in one or more modules, or one
or more modular components built at a location other than the home site;
designed to be used as a permanent residential structure when the module or the
modular component is transported to the permanent site and erected or installed
on a permanent foundation system; and that includes the structure's plumbing,
heating, air conditioning, and electrical systems. Industrialized housing does
not include a residential structure that exceeds three stories or 49 feet in
height; housing constructed of a sectional or panelized system that does not
use a modular component; or a ready-built home constructed in a manner in which
the entire living area is contained in a single unit or section at a temporary
location for the purpose of selling and moving the home to another
location.
(7) Manufactured home--A
HUD-code manufactured home that has a label or decal issued by the U.S.
Department of Housing and Urban Development and the Texas Department of Housing
and Community Affairs permanently affixed to each section, industrialized
housing that has a label or decal issued by the Texas Department of Licensing
and Regulations permanently affixed to each module or modular component, or a
mobile home. A manufactured home does not include a recreational vehicle, park
model, or house trailer, as those terms are defined in this section. Further,
the term does not include a structure designed as a residence and constructed
since June 15, 1976, that lacks a label or decal issued by the U.S. Department
of Housing and Urban Development and the Texas Department of Housing and
Community Affairs or by the Texas Department of Licensing and Regulations
permanently affixed to each section, module, or modular component.
(8) Manufacturer--Any person who constructs
or assembles manufactured housing for sale, exchange, or lease-purchase within
this state.
(9) Mobile home--A
structure constructed before June 15, 1976; transportable in one or more
sections, which in the traveling mode is eight body feet or more in width or 40
body feet or more in length, or when erected on site is 320 or more square
feet; built on a permanent chassis; designed to be used as a dwelling with or
without a permanent foundation when connected to the required utilities; and
that includes the plumbing, heating, air conditioning, and electrical
systems.
(10) New manufactured
home--One that has not been subject to a retail sale.
(11) Park model--A trailer designed to be
used for human habitation, with or without a permanent foundation, when
connected to the required utilities, and that:
(A) is less than eight feet six inches in
width and 45 feet in length in the traveling mode;
(B) includes the plumbing, heating, air
conditioning and electrical systems; and
(C) is not required to be affixed with a
label or decal issued by the U.S. Department of Housing and Urban Development
and by the Texas Department of Housing and Community Affairs.
(12) Person--An individual,
partnership, company, corporation, association, or other group, however
organized.
(13) Recreational
vehicle--A vehicle which is self-propelled or designed to be towed by a motor
vehicle, but is not designed to be used as a permanent dwelling, and which
contains plumbing, heating, and electrical systems that may be operated without
connection to outside utilities. Examples include, but are not limited, to
travel trailers, camper trailers, and motor homes. For information on the
taxability of recreational vehicles, see §
3.72 of this title (relating to
Trailers, Farm Machines, and Timber Machines).
(14) Religious organization--A nonprofit
organization that is an organized group of people regularly meeting for the
primary purpose of holding, conducting and sponsoring religious worship
services, according to the rites of their sect. The organization must be able
to provide evidence of an established congregation showing that there is an
organized group of people regularly attending these services. An organization
that supports and encourages religion as an incidental part of its overall
purpose, or one whose general purpose is furthering religious work or
instilling its membership with a religious understanding, will not qualify for
exemption under this section. No part of the net earnings of the organization
may inure to the benefit of any private party or individual other than as
reasonable compensation for services rendered to the organization. Some
examples of organizations that do not meet the requirements for exemption under
this definition are conventions or associations of churches, evangelistic
associations, churches with membership consisting of family members only,
missionary organizations, and groups who meet for the purpose of holding prayer
meetings, bible study, or revivals.
(15) Retail sale--Sale to a consumer as
opposed to a sale to a retailer for resale or for further processing and
resale.
(16) Retailer--Any person
engaged in the business of buying for resale, selling, or exchanging
manufactured homes or offering them for sale, exchange, or lease-purchase to
consumers, including a person who maintains a location for the display of
manufactured homes. No person will be considered a retailer unless engaged in
the sale, exchange, or lease-purchase of two or more manufactured homes to
consumers in any consecutive 12-month period.
(17) Sales price--The total amount to be
paid, as set forth in the invoice or bill of sale, excluding any separately
stated shipping, freight, or delivery charges from the manufacturer to the
retailer or other person.
(18)
Use--The exercise of any right or power over a manufactured home incident to
its ownership, including the sale, lease, or rental, or the incorporation of
any manufactured home into real estate or into improvements on real
estate.
(19) Used manufactured
home--One that has been subject to a retail sale.
(b) Imposition of tax.
(1) The manufactured housing sales tax is due
on all new manufactured homes sold or consigned by a manufacturer to a retailer
or other person in this state.
(A) Invoices
for all new manufactured homes sold by manufacturers must set forth the amount
of tax imposed at the rate of 5.0% of 65% of the sales price (equivalent to
3.25% of the sales price).
(B) The
manufacturer must report and pay the tax to the comptroller on or before the
last day of the month following the month in which the manufactured home was
sold.
(C) A manufactured home is
presumed to be "sold" at the time the home is sold or consigned by the
manufacturer to a retailer or other person in this state or is shipped to any
point in this state for the use and benefit of any person.
(2) Parts and accessories added to a
manufactured home by the retailer. Limited sales or use tax is due on parts or
accessories installed by a retailer in or on a manufactured home, pursuant to
Tax Code, Chapter 151. For information on the taxability of parts and
accessories added to a manufactured home, see §
3.306(c) of this
title.
(3) Repair, remodeling,
restoration, and maintenance of a manufactured home. The labor to repair,
remodel, restore, or maintain a manufactured home may be subject to the limited
sales and use tax, pursuant to Tax Code, Chapter 151. For more information, see
§
3.306(c) of this
title.
(c) Use tax.
(1) Manufactured homes purchased outside
Texas.
(A) New manufactured homes. A use tax
of 5.0% of 65% of the purchase price (equivalent to 3.25% of the purchase
price) is due on a manufactured home that was purchased new outside of this
state for use, occupancy, resale, or exchange in this state. The tax is to be
paid by the person to whom or for whom the home was sold, shipped, or
consigned. It is presumed that a manufactured home was not purchased for use or
occupancy in this state if the purchaser has purchased the home at a retail
sale at least one year prior to its being brought or shipped to this
state.
(B) Used manufactured homes.
The use tax does not apply to a manufactured home that was purchased used at a
retail sale outside of this state.
(2) Manufactured homes purchased in this
state.
(A) New manufactured homes.
(i) A use tax of 5.0% of 65% of the purchase
price (equivalent to 3.25% of the purchase price) is imposed on a manufactured
home that was purchased new in this state.
(ii) The use tax is not due if the
manufacturer has paid the sales tax on the home to this state. It will be
presumed that the sales tax has been paid on a manufactured home sold, shipped,
or consigned by the manufacturer to a retailer or other person in this state.
The comptroller, the manufacturer, the retailer, and the user of the home may
introduce evidence to establish whether or not the sales tax has been
paid.
(B) Used
manufactured homes. The use tax does not apply to a manufactured home purchased
used at retail in this state.
(3) A credit equal to the amount of any
legally imposed sales or use tax paid to another state on a manufactured home
may be taken against the use tax imposed in this state.
(4) The use tax imposed is to be paid
directly to the comptroller by the person to whom or for whom the home was
sold, shipped, or consigned. The use tax is due and payable by the last day of
the month following the month after the home is sold, shipped, or consigned to
a person in this state.
(d) Interstate sales of manufactured housing.
(1) A manufacturer engaged in business in
this state but located outside this state must collect and remit to the
comptroller the manufactured housing sales tax on the initial sale, shipment,
or consignment of a manufactured home to a retailer or other person in this
state.
(2) The sales tax is not
imposed on a manufactured home that is sold, shipped, or consigned to a
retailer or other person when a manufacturer located in this state ships the
home to a point outside this state by means of:
(A) the facilities of the manufacturer;
or
(B) delivery by the manufacturer
to a carrier for shipment under a bill of lading to a consignee at a location
outside this state.
(3)
The sales tax is not imposed on a manufactured home that is sold to a retailer
in this state for resale at retail to a resident of another state if the home
is transported to and installed for occupancy on a home site located in another
state.
(A) This exemption does not apply if
the home is titled or registered in this state or if the home is used for any
purpose other than display prior to being transported outside of the
state.
(B) The manufacturer may
accept an exemption certificate which has been properly completed and signed by
the retailer and the consumer in compliance with subsection (e) of this
section.
(C) A retailer who has
previously paid the sales tax imposed by this chapter to the manufacturer on a
transaction exempt under this section may claim a credit or a refund from the
manufacturer.
(e) Exemption Certificates.
(1) An exemption certificate may be issued
by:
(A) the United States;
(B) any incorporated agency or
instrumentality of the United States wholly owned by the United States or by a
corporation wholly owned by the United States;
(C) federal credit unions organized under
12
United States Code, §
1768, federal land
bank associations organized under
12
United States Code, §
2098, or farm
credit banks organized under
12
United States Code, §
2023;
(D) the State of Texas, its unincorporated
agencies and instrumentalities;
(E)
any county, city, special district, or other political subdivision of the State
of Texas, and any college or university created or authorized by the State of
Texas;
(F) nonprofit corporations
formed under Local Government Code, Chapter 501, Provisions Governing
Development Corporations or Health and Safety Code, Chapter 221, Health
Facilities Development Act when purchasing items for their exclusive use and
benefit. The exemption does not apply to items purchased by the corporation to
be lent, sold, leased, or rented;
(G) any organization created for religious,
educational, charitable, or eleemosynary purposes, provided that such
organization must have requested and been granted exempt status by the
comptroller. In order to qualify for exempt status the organization must meet
all of the following requirements:
(i) An
organization must be organized or formed solely to conduct one or more exempt
activities. All documents necessary to prove the purpose for which an
organization is formed will be considered when exempt status is
sought.
(ii) An organization must
devote its operations exclusively to one or more exempt activities.
(iii) An organization must dedicate its
assets in perpetuity to one or more exempt activities.
(iv) No profit or gain may pass directly or
indirectly to any private shareholder or individual. All salaries or other
benefits furnished officers and employees must be commensurate with the
services actually rendered.
(H) A resident of another state who purchases
a new manufactured home from a retailer in this state for immediate transport,
installation, and occupancy at a home site located outside of this state,
provided the home:
(i) has not been used by
the retailer for any purpose other than display; and
(ii) is not titled or registered in this
state.
(2) A
manufacturer who accepts an exemption certificate in good faith is relieved of
the responsibility for collecting the tax as required by Tax Code, §
158.053. A retailer must
submit to the manufacturer an exemption certificate which has been signed and
completed by itself and the purchaser.
(A) A
retailer must keep a copy of the exemption certificate attached to the invoice
or bill of sale transferring title to the purchaser.
(B) The manufacturer must retain the original
of the exemption certificate attached to the invoice or bill of sale.
(3) Any person who issues an
exemption certificate for a manufactured home and then uses the home for other
than exempt use will be liable for the tax. The tax will be based on the
selling price of the manufactured home to the person who issued the exemption
certificate.
(4) The exemption
certificate must include:
(A) names and
addresses of the manufacturer, retailer, and purchaser;
(B) a description of the manufactured
home;
(C) the address where the
manufactured home will be installed;
(D) reason for exemption; and
(E) signatures of both the retailer and
purchaser.
(5) Form of
an exemption certificate. An exemption certificate must be in substantially the
form of a Texas Manufactured Housing Sales and Use Tax Exemption Certificate
(Form 18-301). Copies of the exemption certificate are available at:
https://comptroller.texas.gov/forms/18-301.pdf.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.