Tex. Tax Code Section 11.252
Motor Vehicles Leased for Use Other than Production of Income


(a)

The owner of a motor vehicle that is subject to a lease is entitled to an exemption from taxation of the vehicle if:

(1)

the lessee does not hold the vehicle for the production of income; and

(2)

the vehicle is used primarily for activities that do not involve the production of income.

(b)

For purposes of this section, a motor vehicle is presumed to be used primarily for activities that do not involve the production of income if:

(1)

50 percent or more of the miles the motor vehicle is driven in a year are for non-income producing purposes;

(2)

the motor vehicle is leased to this state or a political subdivision of this state; or

(3)

the motor vehicle:

(A)

is leased to an organization that is exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, as an organization described by Section 501(c)(3) of that code; and

(B)

would be exempt from taxation if the vehicle were owned by the organization.

(c)

The comptroller by rule shall establish exemption application requirements and appropriate procedures to determine whether a motor vehicle subject to a lease qualifies for an exemption under Subsection (a).

(d)

In connection with the requirements and procedures under Subsection (c), the comptroller by rule shall adopt a form to be completed by the lessee of a motor vehicle for which the owner of the vehicle may apply for an exemption under Subsection (a). The form shall require a lessee who is an individual to provide the lessee’s name, address, and driver’s license or personal identification certificate number. The form shall require a lessee that is an entity described by Subsection (b) to provide the lessee’s name, address, and, if applicable, federal tax identification number. The form shall require a lessee who is an individual, or the authorized representative of a lessee that is an entity described by Subsection (b), to certify, either under oath or by written, unsworn declaration, that the lessee does not hold the vehicle for the production of income and that the vehicle is used primarily for activities that do not involve the production of income. The comptroller shall include on the form a notice of the penalties prescribed by Section 37.10 (Tampering with Governmental Record), Penal Code, for making a false statement on the form.

(e)

The owner of a motor vehicle that is subject to a lease shall maintain the form, an electronic image of the form, or a certified copy of the form completed by the lessee of the vehicle and make the form, electronic image, or certified copy available for inspection and copying by the chief appraiser of the applicable appraisal district at all reasonable times. If the owner does not maintain a completed form, electronic image of the completed form, or certified copy of the completed form relating to the vehicle, the owner:

(1)

must render the vehicle for taxation in the applicable rendition statement or property report filed by the owner under Chapter 22 (Renditions and Other Reports); and

(2)

may not file an application for an exemption under Subsection (a) for the vehicle.

(f)

The governing body of a municipality by ordinance adopted before January 1, 2002, may provide for the taxation of leased motor vehicles otherwise exempted under Subsection (a). If the governing body of a municipality provides for the taxation of leased motor vehicles under this subsection, the exemption provided by Subsection (a) does not apply to that municipality.

(g)

Repealed by Acts 2003, 78th Leg., ch. 866, Sec. 1.

(h)

In this section:

(1)

“Lease” has the meaning assigned by Section 152.001 (Definitions)(6).

(2)

“Motor vehicle” means a passenger car or truck with a shipping weight of not more than 9,000 pounds.

(i)

In addition to the requirements of Subsections (c) and (d), the comptroller by rule shall prescribe a property report form to be completed by the lessor describing the leased motor vehicles that the lessor owns. The property report form shall require the lessor to list each leased vehicle the lessor owns on January 1, to provide the year, make, model, and vehicle identification number of each leased vehicle, and to provide the name of the lessee, the address at which the vehicle is kept, and an indication of whether the lessee has designated the vehicle as not held for the production and not used for the production of income.

(j)

The lessor shall provide the chief appraiser with the completed property report form adopted by the comptroller in the manner provided by Subchapter B (Publicizing Requirements), Chapter 22 (Renditions and Other Reports).
Added by Acts 2001, 77th Leg., ch. 1406, Sec. 1, eff. Jan. 1, 2002. Amended by Acts 2003, 78th Leg., ch. 866, Sec. 1, eff. June 20, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 570 (S.B. 58), Sec. 1, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 570 (S.B. 58), Sec. 2, eff. September 1, 2019.
Acts 2021, 87th Leg., R.S., Ch. 644 (H.B. 988), Sec. 6, eff. January 1, 2022.

Source: Section 11.252 — Motor Vehicles Leased for Use Other than Production of Income, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­11.­htm#11.­252 (accessed Mar. 16, 2024).

11.01
Real and Tangible Personal Property
11.02
Intangible Personal Property
11.11
Public Property
11.12
Federal Exemptions
11.13
Residence Homestead
11.14
Tangible Personal Property Not Producing Income
11.15
Family Supplies
11.16
Farm Products
11.17
Cemeteries
11.18
Charitable Organizations
11.19
Youth Spiritual, Mental, and Physical Development Associations
11.20
Religious Organizations
11.21
Schools
11.22
Disabled Veterans
11.23
Miscellaneous Exemptions
11.24
Historic Sites
11.25
Marine Cargo Containers Used Exclusively in International Commerce
11.26
Limitation of School Tax on Homesteads of Elderly or Disabled
11.27
Solar and Wind-powered Energy Devices
11.28
Property Exempted from City Taxation by Agreement
11.29
Intracoastal Waterway Dredge Disposal Site
11.30
Nonprofit Water Supply or Wastewater Service Corporation
11.31
Pollution Control Property
11.32
Certain Water Conservation Initiatives
11.33
Raw Cocoa and Green Coffee Held in Harris County
11.34
Limitation of Taxes on Real Property in Designated Areas of Certain Municipalities
11.35
Temporary Exemption for Qualified Property Damaged by Disaster
11.36
Child-care Facilities
11.41
Partial Ownership of Exempt Property
11.42
Exemption Qualification Date
11.43
Application for Exemption
11.44
Notice of Application Requirements
11.45
Action on Exemption Applications
11.46
Compilation of Partial Exemptions
11.47
Mail Survey of Residence Homesteads
11.48
Confidential Information
11.49
Legal Title Not Affected
11.50
Provision of Names of Individuals Receiving Residence Homestead Exemption to Another Chief Appraiser
11.111
Public Property Used to Provide Transitional Housing for Indigent Persons
11.132
Donated Residence Homestead of Partially Disabled Veteran
11.133
Residence Homestead of Surviving Spouse of Member of Armed Services Killed in Line of Duty
11.134
Residence Homestead of Surviving Spouse of First Responder Killed in Line of Duty
11.135
Continuation of Residence Homestead Exemption While Replacement Structure Is Constructed
11.141
Precious Metal Held in Precious Metal Depository
11.161
Implements of Husbandry
11.181
Charitable Organizations Improving Property for Low-income Housing
11.182
Community Housing Development Organizations Improving Property for Low-income and Moderate-income Housing: Property Previously Exempt
11.183
Association Providing Assistance to Ambulatory Health Care Centers
11.184
Organizations Engaged Primarily in Performing Charitable Functions
11.185
Colonia Model Subdivision Program
11.201
Additional Tax on Sale of Certain Religious Organization Property
11.211
Real Property Leased to Certain Schools
11.231
Nonprofit Community Business Organization Providing Economic Development Services to Local Community
11.251
Tangible Personal Property Exempt
11.252
Motor Vehicles Leased for Use Other than Production of Income
11.253
Tangible Personal Property in Transit
11.254
Motor Vehicle Used for Production of Income and for Personal Activities
11.261
Limitation of County, Municipal, or Junior College District Tax on Homesteads of Disabled and Elderly
11.271
Offshore Drilling Equipment Not in Use
11.311
Landfill-generated Gas Conversion Facilities
11.315
Energy Storage System in Nonattainment Area
11.421
Qualification of Religious Organization
11.422
Qualifications of a School
11.423
Qualification of Charitable Organization or Youth Association
11.424
Conflict Between Governing Regulation of Nonprofit Organization, Association, or Entity and Contract with United States
11.431
Late Application for Homestead Exemption
11.432
Homestead Exemption for Manufactured Home
11.433
Late Application for Religious Organization Exemption
11.434
Late Application for a School Exemption
11.435
Late Application for Charitable Organization Exemption
11.436
Application for Exemption of Certain Property Used for Low-income Housing
11.437
Exemption for Cotton Stored in Warehouse
11.438
Late Application for Veteran’s Organization Exemption
11.439
Late Applications for Disabled Veterans Exemptions
11.1801
Charity Care and Community Benefits Requirements for Charitable Hospital
11.1825
Organizations Constructing or Rehabilitating Low-income Housing: Property Not Previously Exempt
11.1826
Monitoring of Compliance with Low-income and Moderate-income Housing Exemptions
11.1827
Community Land Trust
11.4391
Late Application for Freeport Exemption

Accessed:
Mar. 16, 2024

§ 11.252’s source at texas​.gov