State Tax Exemptions for People with Disabilities
The Texas sales tax and motor vehicle sales tax laws allow people with disabilities to purchase certain items and services tax free. Many items and services are specifically tax-exempt by law. Some items that are normally taxed are exempt when purchased with a prescription; others require an exemption certificate. (See Items and Services Exempt from State Sales and Use Tax on page 2 of this publication.)
People with disabilities can purchase certain items and services tax-free. Some items are tax exempt by law, while others are exempt if the buyer provides the seller with a prescription or an exemption certificate. Examples of items in the different categories are listed on page 2 of this brochure.
Tax exempt by law
Items that are exempt by law can be purchased any time without paying tax. There is also no tax on repairs, modifications and maintenance services to these exempt items.
Tax exempt under certain conditions
Some items are exempt when purchased for medical reasons or to allow people with disabilities to function independently. Devices for adapting household appliances can be exempt, for example. To buy the items in this category tax free, the buyer must give the seller or service provider a prescription or an exemption certificate. The exemption also applies to repairs, maintenance and modification of the exempt item.
An exemption certificate is a form that documents that no tax is due on a sale and shows why the customer claims exemption from the tax. A short phrase such as "food for guide dog" will suffice. The retailer keeps the form in case of an audit. You can download and copy the Texas Sales and Use Tax Exemption Certificate (form 01-339) from the Comptroller's Window on State Government Web site at www.window.state.tx.us.
If you mistakenly pay tax on an exempt item, you can either contact the retailer for a refund or request a refund from the Comptroller. Please submit an exemption certificate or a copy of the prescription as documentation for the refund. The Comptroller's office must receive the claim for refund within four years of the date of purchase. For more information on refunds, review Rule 3.325 on our Web site.
Your refund request with supporting documentation should be mailed to:
Sales Tax Refunds Verification Section
Comptroller of Public Accounts
Post 0ffice Box 13528
Austin, Texas 78711-3528
If you have questions regarding a refund request or need a form, you may e-mail us at firstname.lastname@example.org or call 1-800-531-5441, extension 3-4545. The direct number in Austin is 512/463-4545.
Motor Vehicle Sales and Use Tax
Cars, vans, trucks, and other vehicles are taxed under the motor vehicle sales and use tax law. Vehicles are exempt if they are modified for operation by, or transportation of, people with orthopedic disabilities. Examples of vehicle modifications include hand controls, left side accelerator pedals, raised ceilings, and wheelchair ramps and lifts.
To receive the tax exemption, the purchaser should complete the Title Application/Tax Statement form with a statement that the vehicle has been purchased to transport or be driven by someone with an orthopedic disability and a description of the modification.
No tax is due on adaptive devices, the labor to install those devices, or any charge to remodel the vehicle to accommodate the driver or passenger with an orthopedic disability. This exemption does not extend to travel trailers or other vehicles that are not designed to transport people.
If you paid tax in error on an exempt vehicle, you can write the Comptroller's office to claim a refund. Your request must include a copy of the tax receipt that the county issued on the purchase of the vehicle, the purchaser's social security number, and documentation (such as an installer's invoice) that the vehicle has been modified.
The motor vehicle tax is due at the time a vehicle is purchased. The tax exemption covers the purchase of a modified vehicle or a vehicle that will be modified shortly after being bought, to transport or be driven by someone with an orthopedic disability.
Items and Services Exempt from State Sales and Use Tax
|Exempt by Law||