Part 1.
COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3.
TAX ADMINISTRATION
Subchapter F. MOTOR VEHICLE SALES TAX
34 TAC §3.84
The Comptroller of Public Accounts proposes amendments to §3.84,
concerning exemption for orthopedically handicapped person. The proposed amendments
make the rule consistent with legislative changes effective October 1, 2003
concerning the time period during which modifications allowed under the exemption
must be completed. A new subsection (e) is added accordingly. The amendments
also clarify in subsection (d) what documentation is necessary to claim the
exemption. The definitions in subsection (a) clarify what types of modifications
are covered by the exemption and what it means for any motor vehicle to be
primarily driven by, or primarily used to transport, an orthopedically handicapped
person. Additional non-substantive changes, including the adding of a new
subsection (c) relating to persons eligible for the exemption, are made for
clarity.
John Heleman, Chief Revenue Estimator, has determined that for the first
five-year period the rule will be in effect, there will be no significant
revenue impact on the state or units of local government.
Mr. Heleman also has determined that for each year of the first five years
the rule is in effect, the public benefit anticipated as a result of enforcing
the rule will be in identifying the tax responsibilities of sellers and purchasers
of motor vehicles modified for orthopedically handicapped persons. This rule
is adopted under Tax Code, Title 2, and does not require a statement of fiscal
implications for small businesses. There is no significant anticipated economic
cost to individuals who are required to comply with the proposed rule.
Comments on the proposal may be submitted to Bryant K. Lomax, Manager,
Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.
This amendment is proposed under Tax Code, §111.002, which
provides the comptroller with the authority to prescribe, adopt, and enforce
rules relating to the administration and enforcement of the provisions of
Tax Code, Title 2.
The amendment implements Tax Code §152.086.
§3.84.Exemption for Orthopedically Handicapped Person.
(a)
Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
indicates otherwise.
(1)
A motor vehicle modified for operation
by an orthopedically handicapped person is:
(A)
a vehicle that has been specially modified by
altering such items as the conventional brake, acceleration, or steering systems
to facilitate the operation of the vehicle by an orthopedically handicapped
driver; or
(B)
a vehicle that has been specially modified by
installing such items as a wheelchair lift, hoist, or attached ramp to allow
an orthopedically handicapped driver to enter the vehicle.
(2)
[
[
[
[
(3)
Orthopedically handicapped person--An individual who has
limited movement of body extremities and/or loss of physical functions. The
physical impairment must be such that the person is either unable to operate,
or be transported in a reasonable manner in, a motor vehicle
that
[
(b)
Vehicles exempted.
A motor vehicle is exempt from
sales and use tax if:
[
(1)
[
(2)
[
(c)
[
(d)
[
(1)
Motor vehicle
[
(A)
a restricted Texas driver's license which requires a modification
restriction on the vehicle and verifies that the orthopedically handicapped
driver is so physically impaired as to be unable to operate a motor vehicle
which has not been modified; or
(B)
an invoice or other appropriate document from an installer
of special equipment which describes both the modification and the vehicle
being modified.
(2)
A motor vehicle
[
(3)
Alternate documentation. If the documentation is unavailable
at the time of registration, the person claiming this exemption must present
a sworn statement describing the modification to be made and the installer
who will be making the modification. This sworn statement should be made on
the seller, donor, or trader's affidavit form.
(e)
Time period to complete modifications.
Modifications to motor vehicles purchased on or after October 1, 2003 must
be completed within two years of the date of purchase or the exemption is
invalid.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on June 30, 2006.
TRD-200603531
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Earliest possible date of adoption: August 13, 2006
For further information, please call: (512) 475-0387
Subchapter C. CLAIMS PROCESSING--TRAVEL VOUCHERS
(1)
]
A motor
[
Motor
] vehicle modified for [
the
] transportation of an orthopedically
handicapped person--A vehicle
that
[
which
] has been
specially modified by the installation of
such items as
[
either
] a wheelchair lift, hoist,
attached
[
or
]
ramp, [
or
] wheelchair hold-down clamps, or special seat restraints
other than conventional seat belts
to allow for the transportation of
an orthopedically handicapped person in a reasonable manner
.
(2)
Motor vehicle modified for
operation by an orthopedically handicapped person--]
(A)
a vehicle which has been specially modified
by altering conventional brake, acceleration, or steering systems to facilitate
the operation of the vehicle by an orthopedically handicapped driver; or]
(B)
a vehicle which has been modified by installing
a wheelchair lift, hoist, or ramp to allow an orthopedically handicapped driver
to enter the vehicle.]
which
] has not been specially modified.
(1)
There are exempted from motor
vehicle sales and use tax the use and the receipts from the sale of a motor
vehicle that]:
(A)
]
it
has been or will
be modified for operation by, or for the transportation of,
a person
who is
[
an
] orthopedically handicapped
at the time of
purchase
[
person
]; and
(B)
] is primarily driven by, or
primarily used for the transportation of, an orthopedically handicapped person.
(2)
]
Eligible purchasers.
An
individual, partnership, corporation, or association may purchase a vehicle
under this exemption if the requirements
of this section
[
specified in paragraphs (1)(A) and (B) of this subsection
] are satisfied.
(c)
] Documentation required for
exemption.
Vehicle
] modified
for operation by
an
orthopedically handicapped
person
[
persons
]. A person claiming this exemption must present to the county
assessor and collector of taxes:
Vehicles
] modified
for
transportation of an
[
transporting of
] orthopedically
handicapped person. A person claiming this exemption must present to the county
assessor and collector of taxes
a copy of a prescription or statement
from a licensed practitioner of the healing arts identifying the adaptive
devices and/or modifications that are necessary to reasonably transport the
orthopedically handicapped person or
an invoice or other document from
an installer of special equipment. The invoice or document must describe modification
and the vehicle being modified for transporting an orthopedically handicapped
person.
Chapter 5.
FUNDS MANAGEMENT (FISCAL AFFAIRS)