Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter T - MANUFACTURED HOUSING SALES AND USE TAX › Section 3.481 - Imposition and Collection of Manufactured Housing Tax

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)
				  Charitable or eleemosynary organization--A nonprofit organization devoting all
				  or substantially all of its activities to the alleviation of poverty, disease,
				  pain, and suffering by providing food, clothing, drugs, treatment, shelter, or
				  psychological counseling directly to indigent or similarly deserving members of
				  society with its funds derived primarily from sources other than fees or
				  charges for its services. If the organization engages in any substantial
				  activity other than the activities described in this section, it will not be
				  considered as having been organized for purely public charity, and therefore,
				  will not qualify for exemption under this section. No part of the net earnings
				  of the organization may inure to the benefit of any private party or individual
				  other than as reasonable compensation for services rendered to the
				  organization. Some examples of organizations that do not meet the requirements
				  for exemption under this definition are fraternal organizations, lodges,
				  fraternities, sororities, service clubs, veterans groups, mutual benefit or
				  social groups, professional groups, trade or business groups, trade
				  associations, medical associations, chambers of commerce, and similar
				  organizations. Even though not organized for profit and performing services
				  which are often charitable in nature, these types of organizations do not meet
				  the requirements for exemption under this section.
(2) Educational organization--A nonprofit
				  organization or governmental entity whose activities are devoted solely to
				  systematic instruction, particularly in the commonly accepted arts, sciences,
				  and vocations, and which has a regularly scheduled curriculum, using the
				  commonly accepted methods of teaching, a faculty of qualified instructors, and
				  an enrolled student body or students in attendance at a place where the
				  educational activities are regularly conducted. An organization that has
				  activities consisting solely of presenting discussion groups, forums, panels,
				  lectures, or other similar programs, may qualify for exemption under this
				  section, if the presentations provide instruction in the commonly accepted
				  arts, sciences, and vocations. The organization will not be considered for
				  exemption under this section if the systematic instruction or educational
				  classes are incidental to some other facet of the organization's activities. No
				  part of the net earnings of the organization may inure to the benefit of any
				  private party or individual other than as reasonable compensation for services
				  rendered to the organization. Some examples of organizations that do not meet
				  the requirements for exemption under this definition are professional
				  associations, business leagues, information resource groups, research
				  organizations, support groups, home schools, and organizations that merely
				  disseminate information by distributing printed publications. Entities that are
				  defined in Education Code, §
											61.003, as
				  "institutions of higher education" are recognized for exemption under this
				  section. Included in the definition of "institutions of higher education" are
				  state and private universities and colleges.
(3) Exempt use--A use to promote the purpose
				  for which an exempt organization was created.
(4) House trailer--A trailer designed for
				  human habitation, including a park model as defined in this section. The term
				  does not include mobile offices as defined in §
											3.306
				  of this title (relating to Sales of Mobile Offices, Oilfield Portable Units,
				  Portable Buildings, Prefabricated Buildings, and Ready-Built Homes);
				  manufactured homes as defined in this section; or portable buildings,
				  prefabricated buildings, and ready-built homes, as defined in §
											3.306
				  of this title.
(5) HUD-code
				  manufactured home--A structure constructed on or after June 15, 1976, according
				  to the rules of the United States Department of Housing and Urban Development;
				  transportable in one or more sections, which in the traveling mode is eight
				  body feet or more in width or 40 body feet or more in length, or when erected
				  on site is 320 or more square feet; built on a permanent chassis and designed
				  to be used as a dwelling with or without a permanent foundation when connected
				  to the required utilities; and which includes the plumbing, heating, air
				  conditioning, and electrical systems.
(6) Industrialized housing--A residential
				  structure that is designed for the occupancy of one or more families;
				  constructed in one or more modules, or one or more modular components built at
				  a location other than the home site; designed to be used as a permanent
				  residential structure when the module or the modular component is transported
				  to the permanent site and erected or installed on a permanent foundation
				  system; and that includes the structure's plumbing, heating, air conditioning,
				  and electrical systems. Industrialized housing does not include a residential
				  structure that exceeds three stories or 49 feet in height; housing constructed
				  of a sectional or panelized system that does not use a modular component; or a
				  ready-built home constructed in a manner in which the entire living area is
				  contained in a single unit or section at a temporary location for the purpose
				  of selling and moving the home to another location.
(7) Manufactured home--A HUD-code
				  manufactured home that has a label or decal issued by the U.S. Department of
				  Housing and Urban Development and the Texas Department of Housing and Community
				  Affairs permanently affixed to each section, industrialized housing that has a
				  label or decal issued by the Texas Department of Licensing and Regulations
				  permanently affixed to each module or modular component, or a mobile home. A
				  manufactured home does not include a recreational vehicle, park model, or house
				  trailer, as those terms are defined in this section. Further, the term does not
				  include a structure designed as a residence and constructed since June 15,
				  1976, that lacks a label or decal issued by the U.S. Department of Housing and
				  Urban Development and the Texas Department of Housing and Community Affairs or
				  by the Texas Department of Licensing and Regulations permanently affixed to
				  each section, module, or modular component.
(8) Manufacturer--Any person who constructs
				  or assembles manufactured housing for sale, exchange, or lease-purchase within
				  this state.
(9) Mobile home--A
				  structure constructed before June 15, 1976; transportable in one or more
				  sections, which in the traveling mode is eight body feet or more in width or 40
				  body feet or more in length, or when erected on site is 320 or more square
				  feet; built on a permanent chassis; designed to be used as a dwelling with or
				  without a permanent foundation when connected to the required utilities; and
				  that includes the plumbing, heating, air conditioning, and electrical
				  systems.
(10) New manufactured
				  home--One that has not been subject to a retail sale.
(11) Park model--A trailer designed to be
				  used for human habitation, with or without a permanent foundation, when
				  connected to the required utilities, and that:
(A) is less than eight feet six inches in
				  width and 45 feet in length in the traveling mode;
(B) includes the plumbing, heating, air
				  conditioning and electrical systems; and
(C) is not required to be affixed with a
				  label or decal issued by the U.S. Department of Housing and Urban Development
				  and by the Texas Department of Housing and Community Affairs.
(12) Person--An individual,
				  partnership, company, corporation, association, or other group, however
				  organized.
(13) Recreational
				  vehicle--A vehicle which is self-propelled or designed to be towed by a motor
				  vehicle, but is not designed to be used as a permanent dwelling, and which
				  contains plumbing, heating, and electrical systems that may be operated without
				  connection to outside utilities. Examples include, but are not limited, to
				  travel trailers, camper trailers, and motor homes. For information on the
				  taxability of recreational vehicles, see §
											3.72
				  of this title (relating to Trailers, Farm Machines, and Timber
				  Machines).
(14) Religious
				  organization--A nonprofit organization that is an organized group of people
				  regularly meeting for the primary purpose of holding, conducting and sponsoring
				  religious worship services, according to the rites of their sect. The
				  organization must be able to provide evidence of an established congregation
				  showing that there is an organized group of people regularly attending these
				  services. An organization that supports and encourages religion as an
				  incidental part of its overall purpose, or one whose general purpose is
				  furthering religious work or instilling its membership with a religious
				  understanding, will not qualify for exemption under this section. No part of
				  the net earnings of the organization may inure to the benefit of any private
				  party or individual other than as reasonable compensation for services rendered
				  to the organization. Some examples of organizations that do not meet the
				  requirements for exemption under this definition are conventions or
				  associations of churches, evangelistic associations, churches with membership
				  consisting of family members only, missionary organizations, and groups who
				  meet for the purpose of holding prayer meetings, bible study, or
				  revivals.
(15) Retail sale--Sale to
				  a consumer as opposed to a sale to a retailer for resale or for further
				  processing and resale.
(16)
				  Retailer--Any person engaged in the business of buying for resale, selling, or
				  exchanging manufactured homes or offering them for sale, exchange, or
				  lease-purchase to consumers, including a person who maintains a location for
				  the display of manufactured homes. No person will be considered a retailer
				  unless engaged in the sale, exchange, or lease-purchase of two or more
				  manufactured homes to consumers in any consecutive 12-month period.
(17) Sales price--The total amount to be
				  paid, as set forth in the invoice or bill of sale, excluding any separately
				  stated shipping, freight, or delivery charges from the manufacturer to the
				  retailer or other person.
(18)
				  Use--The exercise of any right or power over a manufactured home incident to
				  its ownership, including the sale, lease, or rental, or the incorporation of
				  any manufactured home into real estate or into improvements on real
				  estate.
(19) Used manufactured
				  home--One that has been subject to a retail sale.