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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3TAX ADMINISTRATION
SUBCHAPTER FMOTOR VEHICLE SALES TAX
RULE §3.84Exemption for Orthopedically Handicapped Person

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

  (1) A motor vehicle modified for operation by an orthopedically handicapped person is:

    (A) a vehicle that has been specially modified by altering such items as the conventional brake, acceleration system, or steering system to facilitate the operation of the vehicle by an orthopedically handicapped driver, including but not limited to, hand controls to operate the brake, clutch, or accelerator; relocating or altering the accelerator pedal; and relocating or extending the emergency brake; or

    (B) a vehicle that has been specially modified by installing such items as a wheelchair lift, hoist, raised roof, or attached ramp to allow an orthopedically handicapped driver to enter the vehicle.

  (2) A motor vehicle modified for transportation of an orthopedically handicapped person--A vehicle that has been specially modified by the installation of such items as a wheelchair lift, hoist, attached ramp, wheelchair hold-down clamps, raised roof, or special seat restraints other than conventional seat belts to allow for the transportation of an orthopedically handicapped person in a reasonable manner.

  (3) Licensed practitioner of the healing arts--A person licensed to practice the healing arts as set out in Occupations Code, §104.003(b), (c), (e) and (g). This includes a person who is licensed by the Texas Medical Board and holds a doctor of medicine degree, a person who is licensed by the Texas Medical Board and holds a doctor of osteopathy degree, a person who is licensed by the Texas Board of Chiropractic Examiners, or a person who is licensed by the Texas State Board of Podiatric Medical Examiners.

  (4) Orthopedically handicapped person--An individual who has limited movement of body extremities and/or loss of physical functions. The physical impairment must be such that the person is either unable to operate, or be transported in a reasonable manner in, a motor vehicle that has not been specially modified.

  (5) Primarily driven by, or primarily used for the transportation of, an orthopedically handicapped person--The motor vehicle must be driven by, or used for the transportation of, an orthopedically handicapped person at least 80% of the motor vehicle's operating time.

(b) Vehicles eligible for exemption. A motor vehicle is exempt from sales and use tax if:

  (1) it has been or will be modified for operation by, or for the transportation of, a person who is orthopedically handicapped at the time of purchase; and

  (2) is primarily driven by, or primarily used for the transportation of, an orthopedically handicapped person.

(c) Eligible purchasers. An individual, partnership, corporation, or association may purchase a vehicle under this exemption if the requirements of this section are satisfied.

(d) Ineligible modifications. Modifications that do not qualify a motor vehicle for exemption under this section include, but are not limited to, the following:

  (1) installation of standard factory options, such as automatic transmission, power seats, power windows, or adjustable pedals;

  (2) installation of weight-bearing grab bars or handicap assist handles;

  (3) installation of running boards or steps;

  (4) installation of steering wheel spinner knobs;

  (5) installation of non-electrical carriers designed for bicycles or wheelchairs;

  (6) installation of standard trailer hitches; or

  (7) the addition of ramps, including bi-fold ramps, that are not permanently attached to the vehicle.

(e) Documentation required to claim an exemption.

  (1) A person claiming the exemption must present the seller that is licensed as a motor vehicle dealer under Texas Transportation Code, Chapter 503 or Occupations Code, Chapter 2301, or the county tax assessor-collector:

    (A) a properly completed comptroller Form 14-318, Texas Motor Vehicle Orthopedically Handicapped Exemption Certificate; and

    (B) a restricted Texas driver's license, issued to the qualified orthopedically handicapped person, which requires a modification restriction on the vehicle and verifies that the orthopedically handicapped driver is so physically impaired as to be unable to operate a motor vehicle which has not been modified; or

    (C) a statement from a licensed practitioner of the healing arts that the qualified orthopedically handicapped person requires adaptive devices and/or modifications described in subsection (a) of this section that are necessary for the operation by, or the transport of, an orthopedically handicapped person. This requirement is satisfied by the practitioner's signature on the Texas Motor Vehicle Orthopedically Handicapped Exemption Certificate.

  (2) There is no provision in the motor vehicle sales and use tax act for an exemption number or a tax exempt number to be issued or used in connection with the exemption certificate.

  (3) The sale is exempt if the certificate identified in paragraph (1)(A) of this subsection, and the document identified in paragraph (1)(B) or (C) of this subsection is accepted in good faith by the seller from the purchaser at the time of sale, the certificate clearly indicates an eligible modification for the exemption, and the seller lacks actual knowledge that the claimed exemption is invalid. The seller must provide the exemption certificate and any related required documents to the county tax assessor-collector at the time of titling and registration and retain a copy of the exemption certificate and required documents for at least four years from the date of the sale of the motor vehicle.

(f) Time period to complete eligible modifications. Modifications to an eligible motor vehicle must be:

  (1) needed at the time of purchase; and

  (2) completed within two years of the date of purchase of the motor vehicle.

(g) Claiming a refund from the comptroller. Persons who paid sales tax to either a seller or to a county tax assessor-collector in error may request a refund of the tax directly from the comptroller. Persons applying for a refund must comply with the requirements of §3.75 of this title (relating to Refunds, Payments Under Protest, Payment Instruments and Dishonored Payments).


Source Note: The provisions of this §3.84 adopted to be effective April 25, 1978, 3 TexReg 1347; amended to be effective May 3, 1982, 7 TexReg 1570; amended to be effective September 18, 2006, 31 TexReg 8002; amended to be effective May 16, 2010, 35 TexReg 3650

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