34 Tex. Admin. Code § 3.69 - Motor Vehicle Use Tax; Interstate Commerce; Motor Carriers
(a) The motor vehicle use tax is due upon
every motor vehicle purchased at retail outside this state, and brought into
Texas for use upon the public highways by any person, firm, or corporation that
is doing business in this state. The tax shall be the obligation of and be paid
by the operator of the motor vehicle.
(b) For the purposes of this section and the
Texas Tax Code, §
152.022, an individual,
firm, corporation, or other entity is doing business in the state if it engages
or transacts some part of its ordinary business in the state. The activities of
either the entity or the manner in which the motor vehicle is used in the state
may result in liability for the motor vehicle use tax.
(c) An entity which has sufficient contacts,
or conducts sufficient activities in the state so that it is doing business,
will be liable for the motor vehicle use tax on any of its motor vehicles which
use the highways of Texas. If the entity does not conduct sufficient activities
or have sufficient contacts with the state to be considered doing business, it
will not be liable for the motor vehicle use tax on any of its vehicles which
operate upon the highways of Texas.
(d) The following is a nonexhaustive list of
activities which constitute doing business in Texas and which would subject a
person, firm, corporation, or other entity to liability for the motor vehicle
use tax.
(1) Except as provided in subsection
(f) of this section, providing any service in Texas, whether or not the persons
performing the service are residents of the state.
(2) Assembling, erecting, processing,
manufacturing, selling, or storing property located in Texas.
(3) Transporting persons or property from one
point in Texas to another point in Texas, even though the transporting
vehicle's origination or ultimate destination may be outside Texas.
(4) Owning, leasing or maintaining
facilities, and/or maintaining employees in Texas:
(A) for storage, delivery, or shipment of
goods;
(B) for servicing,
maintenance, or repair of vehicles; or
(C) for coordinating and directing the
transportation of persons or property, which transportation is at least
partially in Texas.
(5)
Having a representative, agent, salesman, canvasser or solicitor in the state
under the authority of the entity for the purpose of selling or soliciting
sales of goods or services.
(6)
Delivering one's own goods to locations in Texas with one's own vehicles or
employees.
(e) A
domestic corporation or a foreign corporation which has a certificate of
authority to transact business in Texas is considered to be doing business in
Texas for the purposes of this section.
(f) A person, firm, corporation, or other
entity not otherwise doing business under this section will not be liable for
motor vehicle use tax on vehicles it brings into Texas from outside the state
solely to deliver and/or pick up persons or property as a third-party carrier
when the persons or the property is being transported in interstate or foreign
commerce.
(g) The Motor Vehicle
Sales and Use Tax imposed by the Texas Tax Code, Chapter 152, does not apply to
motor vehicles, trailers, and semitrailers taxed under Chapter 157; and the
taxes imposed by Chapter 157 do not apply to motor vehicles taxed under Chapter
152; provided that, if a motor vehicle, trailer, or semitrailer taxed under
Chapter 157 ceases to be used as an interstate motor vehicle, trailer, or
semitrailer within one year of either the date the vehicle was purchased in
Texas or the date such vehicle was first brought into Texas, the taxes imposed
by Chapter 152 will apply at that time.
Notes
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