taxes

Motor Vehicle Tax Guide

Public Organizations

In addition to public agencies, various other organizations are exempt from motor vehicle tax by specific statutes. These organizations are not required to operate their motor vehicles with exempt license plates to qualify for the exemption.

Federal Organizations

Tax exemptions, including motor vehicle tax exemptions provided by federal law, are listed below along with their enabling statutory provision and/or court decision:

• American Red Cross, Department of Employment v. United States, 385 U.S. 355 (1966).
• Boy Scouts, Girl Scouts, Camp Fire Girls, Boys Clubs and Girls Clubs – determined to be instrumentalities of the federal government, based on Department of Employment v. United States, 385 U.S. 355 (1966).
• Farm Credit Banks, 12 U.S.C. Section 2023.
• Federal Credit Unions, 12 U.S.C. Section 1768.
• Federal Deposit Insurance Corporation, 12 U.S.C. Section 1825.
• Federal Home Loan Mortgage, Inc. and other Federal Home Loan Banks, 12 U.S.C. Section 1452(e).
• Federal Land Credit Associations, 12 U.S.C. Section 2098 Section 2.16 (Taxation);
• Federal Reserve Banks, 12 U.S.C. Section 531; and
• Native American Tribes, including the Alabama Coushatta, Kickapoo, and Tigua Indian Tribes – determined to be instrumentalities of the federal government, based on Oklahoma Tax Comm’n v. Sac and Fox Nation, 508 U.S. 114 (1993).

This exemption does not extend to individual tribe members; therefore, sales of motor vehicles to individual members are subject to motor vehicle tax.

State Organizations

Tax exemptions, including motor vehicle tax exemptions provided by state law, are listed below with applicable citations:

• Cultural Education Facilities Finance Corporations, organized under Article 1528m, V.T.C.S.
• Health Facilities Development Corporations, organized under Health and Safety Code Chapter 221, Health Facilities Development Act.
• Housing Authorities, organized under Local Government Code Chapter 392, Housing Authorities Established by Municipalities and Counties.
• Housing Finance Corporations, organized under Local Government Code Chapter 394, Housing Finance Corporations in Municipalities and Counties.
• Local Organizing Committees for the following: Pan American Games, the Olympic Games, the Super Bowl, the National Collegiate Athletic Association Final Four, the National Basketball Association All-Star Game, the National Hockey League All-Star Game, the Major League Baseball All-Star Game, College Football Playoffs, FIFA World Cup soccer games, and the World Games; providing the entity is also exempt from paying federal income tax under Section 501(c), Internal Revenue code of 1986, as amended. Article 5190.14, V.T.C.S.
• Public Facility Corporations, organized under Local Government Code Chapter 303, Public Facility Corporations.
• Rural Electric Cooperatives, organized under Utilities Code Section 161.062, Exemption from Excise Taxes.
• Telephone Cooperatives, organized under Utilities Code Section 162.062, Exemption from Excise Taxes.
• Texas Citrus Pest and Disease Management Corporation, as provided in Agriculture Code Chapter 80, Official Citrus Producers’ Pest and Disease Management Corporation, effective Sept. 1, 2009.
• Texas Citrus Pest and Disease Management Corporation Board of Directors, as provided in Agriculture Code Chapter 80, Official Citrus Producers’ Pest and Disease Management Corporation, effective Sept. 1, 2009.

96-254
(09/2021)