taxes

Motor Vehicle Tax Guide

Moveable Specialized Equipment (MSE)

A moveable unit’s actual design and construction, rather than its use, determines the applicable tax. Distinguishing between similar pieces of equipment with the same use may be necessary to determine if the item is moveable specialized equipment (MSE) subject to limited sales or use tax or a motor vehicle subject to motor vehicle tax.

MSE is a unit designed and built specifically to perform a specialized function that does not include transporting property separate from itself.

A motor vehicle is a self-propelled vehicle designed to transport persons or property upon the highway and a vehicle designed to be towed by a self-propelled vehicle while carrying property. A motor vehicle includes trucks, automobiles, trailers, trailers sold unassembled in a kit, semitrailers, house trailers, dollies, jeeps, stingers, auxiliary axles, converter gears, truck cab and chassis, and motorcycles.

Taxability

Purchases of MSE are subject to limited sales or use tax. The county tax assessor-collector is not responsible for determining whether limited sales or use tax has been paid on a unit.

All motor vehicles, regardless of use or accessories or equipment attached, are subject to motor vehicle tax, unless exempted.

Motor vehicle tax is calculated on the sales price or total consideration, including all accessories and equipment attached at the time of purchase. Accessories or equipment purchased in a separate transaction are subject to limited sales or use tax.

The type of registration and titling required by Texas Department of Motor Vehicles (TxDMV) does not determine the tax liability.

96-254
(09/2021)