Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter O - STATE AND LOCAL SALES AND USE TAXES › Section 3.290 - Motor Vehicle Repair and Maintenance; Accessories and Equipment Added to Motor Vehicles; Moveable Specialized Equipment

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions. The following words and
				  terms, when used in this section, shall have the following meanings, unless the
				  context clearly indicates otherwise.
(1)
				  Accessories--Nonessential tangible personal property attached to a motor
				  vehicle for the convenience or comfort of the operator or passengers, or to
				  assist or aid in the transportation, loading, or unloading of tangible personal
				  property. Examples include car radio, air conditioner, refrigerator on a meat
				  van, or a concrete mixer.
(2)
				  Agreed contract price for materials--The price specified in the contract for
				  the materials plus any additional charges directly attributable to the
				  materials. For example, the cost of transportation of the materials, profit
				  calculated as a percentage of the cost of materials, or markup or handling
				  charges related directly to the materials charge, is included in the agreed
				  contract price. A charge calculated as a percentage of the total contract cost
				  will not be considered a part of the materials' selling price. The agreed
				  contract price of the materials cannot be less than the price the repairman
				  paid for materials.
(3)
				  Component--A part of a motor vehicle such as tires, batteries, shock absorbers,
				  and mufflers or a motor vehicle system such as the suspension, electrical, or
				  cooling systems necessary to the proper operation of a motor vehicle and
				  including any part of the chassis or body.
(4) Consumable supplies--Tangible personal
				  property, except natural gas and electricity, used directly in a repair
				  operation or in the repair area, which after used for its intended purpose, is
				  completely used up, or which is not retained or reusable by the person
				  providing the service. Consumable supplies do not include office supplies or
				  other tangible personal property used in the general operation of the
				  business.
(5) Equipment
				  attachment--A part attached to a motor vehicle which is neither a component,
				  nor an accessory, but which may be cargo that the vehicle transports, such as a
				  welder, crane, compressor, or other type equipment.
(6) Extended warranty or service policy--This
				  contract is sold to the buyer of the product for an additional amount. The
				  provisions of the contract become effective after the manufacturer's warranty
				  expires.
(7) Install or
				  installation--To set tangible personal property in place for use or service.
				  Install or installation does not include:
(A)
				  the removal and/or replacement of a defective or broken part of a motor
				  vehicle; or
(B) the addition of
				  tangible personal property causing a change in the motor vehicle that
				  constitutes remodeling.
(8) Lump-sum contract--A written agreement in
				  which the agreed price for doing a job is one lump-sum amount and in which the
				  charges for materials are not separate from the charges for skill and labor.
				  Separated invoices issued to the customer will not change a written lump-sum
				  contract into a separated contract unless the terms of the contract require
				  separated invoices.
(9)
				  Maintenance--All work on operational and functioning motor vehicles necessary
				  to sustain or support safe, efficient, continuous operations, or to keep in
				  good working order by preventing the decline, failure, lapse, or deterioration
				  of the motor vehicles.
(10)
				  Manufacturer's written warranty--A guarantee by the manufacturer that the
				  product at the time of sale is operable and will remain operable for a
				  specified period of time. The manufacturer's warranty is provided without
				  additional cost to the buyer.
(11)
				  Motor vehicle--A self-propelled unit designed to transport property separate
				  from itself or persons other than the driver upon the public highways. The term
				  also includes trailers, semi-trailers, and house trailers. A unit which meets
				  the definition of a "motor vehicle" does not lose its identity as a motor
				  vehicle if tangible personal property is added to the vehicle allowing the unit
				  to perform a specialized function but prohibits the vehicle from transporting
				  separate property or persons other than the driver. An example of this would be
				  a flatbed truck upon which oil well servicing equipment is attached. All motor
				  vehicles are subject to the provisions of the Tax Code, Chapter 152.
(12) Moveable specialized equipment--A unit
				  designed and built specifically to perform a specialized function which does
				  not include transporting property separate from itself or persons other than
				  the driver is not a motor vehicle. Examples of moveable specialized equipment
				  meeting these criteria are motorized cranes, motorized oil well servicing
				  units, and mobile auto crushers. Moveable specialized equipment is subject to
				  the provisions of the Tax Code, Chapter 151.
(13) Remodel--To modify the style, shape, or
				  form of motor vehicles belonging to another.
(14) Repair--To mend or restore to working
				  order or operating condition a motor vehicle that was broken, worn, damaged,
				  defective, or malfunctioning.
(15)
				  Repairman--For the purposes of this section, any person who, operating under a
				  lump-sum or separated contract, restores, repairs, or replaces an inoperable or
				  malfunctioning component of a motor vehicle.
(16) Separated contract--A written agreement
				  which is divided into a separately stated price for materials and a separately
				  stated price for skill and labor. If prices of materials and labor are
				  separately stated, the fact that the charges are added together and a sum total
				  given is irrelevant. When the contract itself does not contain specific amounts
				  for materials and labor, but provides that all invoices will separate the
				  charges for materials from the charges for skill and labor, the contract will
				  be regarded as a separated contract.