|(a) Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
(1) Bunkhouse--A house trailer designed to be used as a sleeping
place for a group or crew but not as a single family residence.
(2) Farm or ranch--One or more tracts of land used to
produce crops, livestock, or other agricultural products to be sold in the
regular course of business. Farm or ranch also includes a dairy farm, commercial
orchard, commercial greenhouse, feedlot, and any similar commercial agricultural
operation that is an original producer of agricultural products. Home gardens
are not considered farms or ranches.
(3) Farm machine--A self-propelled motor vehicle specially
adapted for use in the production of crops or rearing of livestock, including
poultry, or for use in feedlots and includes a self- propelled motor vehicle
specially adapted for applying plant food materials, agricultural chemicals,
or feed for livestock. Farm machine does not include any self-propelled motor
vehicle specifically designed or specially adapted for the sole purpose of
transporting agricultural products, plant food materials, agricultural chemicals,
or feed for livestock.
(4) Farm trailer--A trailer or semitrailer designed and
used primarily as a farm or ranch vehicle.
(5) House trailer--A trailer designed for human habitation.
(6) Installation or set-up charges--Include charges for
spotting, placing, leveling, blocking, anchoring, and connecting electricity,
plumbing, and other utilities, and may include a charge for installing underskirting,
awnings, and steps.
(7) Its own structure--The trailer is built on a permanent
chassis with wheels, axles and a towing device.
(8) Mobile office--A trailer designed to be used as an
office, sales outlet, or work place.
(9) Timber machine -- A self-propelled motor vehicle specially
adapted to perform a specialized function for use primarily in timber operations.
Timber machine does not include any self- propelled motor vehicle specifically
designed or adapted for the primary purpose of transporting timber or timber
products including a self-propelled motor vehicle designed to transport cargo
and adapted with a cargo loading device.
(10) Timber operation--The production of timber including
land preparation, planting, maintenance, and gathering of trees commonly grown
for commercial timber.
(11) Timber trailer--A trailer or semitrailer designed
for and used primarily in a timber operation.
(12) Trailer--A vehicle without automotive power designed
for human habitation or for carrying property upon its own structure and to
be drawn by a self-propelled motor vehicle. Included in this definition are
semitrailers, bunkhouses, dollies, jeeps, stingers, auxiliary axles, converter
gears, travel trailers, park models, and house trailers. This definition does
not include mobile offices, manufactured housing as defined in the Texas Manufactured
Housing Standards Act (Texas Civil Statutes, Article 5221f), or portable buildings
and prefabricated buildings as defined in §3.306 of this title (relating
to Sales of Portable Buildings, Prefabricated Buildings, and Readybuilt Homes).
(13) Travel trailer or park model--A house trailer designed
to be used as a dwelling and that is less than eight body feet in width and
40 body feet in length in the traveling mode and less than 320 square feet
when installed or erected on site.
(b) Loss of identity.
(1) A trailer is presumed to be permanently affixed and an
improvement to real property that loses its identity as a motor vehicle if:
(A) it is attached so that it cannot be reasonably reconstructed
and made operational for highway use; or
(B) it is attached or installed in a manner that meets all
governmental standards (if any) for the installation, including zoning regulations,
building codes, federal regulations and other requirements applicable to the
land on which it is located; and it is either:
(i) installed on land owned by the purchaser if the purchaser
intends to incorporate the trailer as a permanent fixture to the land; or
(ii) installed on land leased to the purchaser if the lease
contract provides that improvements to the land become the property of the
(2) A trailer is presumed to be temporarily
affixed to the real property and remains a motor vehicle if:
(A) the owner of the trailer only has permission to use the
land but no contractual right to do so; or
(B) the owner of the trailer has a contractual right to use
the land and also has the right to remove the trailer at any time or upon
the termination of the contract.
(c) Application of the motor vehicle sales tax to farm machines,
timber machines, and trailers.
(1) A retail sale of a trailer is a taxable sale of a motor
vehicle. Motor vehicle sales or use tax is due on the total sales price including
charges for all accessories attached at the time of sale and for transportation
prior to the sale. Charges for transportation after the sale (transportation
from the place of sale to the delivery or set-up site) and charges for installation
or set-up after the sale are not subject to tax. Tax is due on the gross receipts
charged on the rental of a motor vehicle.
(2) A retail sale, use, or rental of a farm machine or
a farm trailer is not subject to the motor vehicle sales and use tax or gross
rental receipts tax if the farm machine or trailer is used primarily on a
farm or ranch in the production of food for human consumption, grass, feed
for any form of animal life, or other livestock or agricultural products to
be sold in the regular course of business. Farm trailers primarily used by
the original producer in processing, packing, or marketing his own livestock
or agricultural products are also exempt from motor vehicle sales and use
(3) A retail sale, use, or rental of a farm trailer used
exclusively in processing, packing, or marketing agricultural products by
an agricultural cooperative or gin is subject to the tax, unless the cooperative
can prove the cooperative itself is the original producer of all agricultural
products being processed, packed, or marketed, and that those functions are
performed at a location operated by the cooperative.
(4) Effective January 1, 2001, a retail sale, use, or
rental of a timber machine or a timber trailer is not subject to motor vehicle
sales and use tax or gross rental receipts tax if the timber machine or timber
trailer is used primarily in a timber operation.