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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3TAX ADMINISTRATION
SUBCHAPTER TMANUFACTURED HOUSING SALES AND USE TAX
RULE §3.481Imposition and Collection of Manufactured Housing Tax

    (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.


Source Note: The provisions of this §3.481 adopted to be effective December 6, 1996, 21 TexReg 11510; amended to be effective November 14, 2013, 38 TexReg 7971; amended to be effective February 11, 2018, 43 TexReg 582

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