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RULE §3.69Motor 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.

Source Note: The provisions of this §3.69 adopted to be effective January 1, 1976; amended to be effective May 17, 1982, 7 TexReg 1695.

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