(a) The taxes imposed by this chapter do not apply to the purchase of a motor vehicle that is to be leased to a public agency.
(b) This exemption applies only if the person purchasing the motor vehicle to be leased presents the tax assessor-collector a form prescribed and provided by the comptroller and showing:
(1) the identification of the motor vehicle;
(2) the name and address of the lessor and the lessee; and
(3) verification by an officer of the public agency to which the motor vehicle will be leased that the agency will operate the vehicle with an exempt license plate issued under § 502.451, Transportation Code.

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Terms Used In Texas Tax Code 152.083

  • Comptroller: means the Comptroller of Public Accounts of the State of Texas. See Texas Tax Code 1.04
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005

(c) If a motor vehicle for which the tax has not been paid ceases to be leased to a public agency, the owner shall notify the comptroller on a form provided by the comptroller and shall pay the sales or use tax on the motor vehicle based on the owner’s book value of the motor vehicle. The tax is imposed at the same rate that is provided by § 152.021(b) of this code.