1. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

   1. (1) Bunkhouse--A house trailer designed to be used as a sleeping place for a group or crew but not as a single family residence.
   2. (2) Farm or ranch--One or more tracts of land used to produce crops, livestock, or other agricultural products to be sold in the regular course of business. Farm or ranch also includes a dairy farm, commercial orchard, commercial greenhouse, feedlot, and any similar commercial agricultural operation that is an original producer of agricultural products. Home gardens or timber operations are not considered farms or ranches.
   3. (3) Farm trailer--A trailer or semitrailer designed and used primarily as a farm or ranch vehicle.
   4. (4) House trailer--A trailer designed for human habitation.
   5. (5) Installation or set-up charges--Include charges for spotting, placing, leveling, blocking, anchoring, and connecting electricity, plumbing, and other utilities, and may include a charge for installing underskirting, awnings, and steps.
   6. (6) Its own structure--The trailer is built on a permanent chassis with wheels, axles and a towing device.
   7. (7) Mobile office--A trailer designed to be used as an office, sales outlet, or work place.
   8. (8) Trailer--A vehicle without automotive power designed for human habitation or for carrying property upon its own structure and to be drawn by a self-propelled motor vehicle. Included in this definition are semitrailers, bunkhouses, dollies, jeeps, stingers, auxiliary axles, converter gears, travel trailers, park models, and house trailers. This definition does not include mobile offices, manufactured housing as defined in the Texas Manufactured Housing Standards Act (Texas Civil Statutes, Article 5221f), or portable buildings and prefabricated buildings as defined in §3.306 of this title (relating to Sales of Portable Buildings, Prefabricated Buildings, and Readybuilt Homes).
   9. (9) Travel trailer or park model--A house trailer designed to be used as a dwelling and that is less than eight body feet in width and 40 body feet in length in the traveling mode and less than 320 square feet when installed or erected on site.

2. (b) Loss of identity.

   1. (1) A trailer is presumed to be permanently affixed and an improvement to real property that loses its identity as a motor vehicle if:

      1. (A) it is attached so that it cannot be reasonably reconstructed and made operational for highway use; or

      2. (B) it is attached or installed in a manner that meets all governmental standards (if any) for the installation, including zoning regulations, building codes, federal regulations and other requirements applicable to the land on which it is located; and it is either:

         1. (i) installed on land owned by the purchaser if the purchaser intends to incorporate the trailer as a permanent fixture to the land; or
         2. (ii) installed on land leased to the purchaser if the lease contract provides that improvements to the land become the property of the lessor.

   2. (2) A trailer is presumed to be temporarily affixed to the real property and remains a motor vehicle if:

      1. (A) the owner of the trailer only has permission to use the land but no contractual right to do so; or
      2. (B) the owner of the trailer has a contractual right to use the land and also has the right to remove the trailer at any time or upon the termination of the contract.

3. (c) Application of the motor vehicle sales tax to trailers.

   1. (1) A retail sale of a trailer is a taxable sale of a motor vehicle. Motor vehicle sales tax is due on the total sales price including charges for all accessories attached at the time of sale and for transportation prior to the sale. Charges for transportation after the sale (transportation from the place of sale to the delivery or set-up site) and charges for installation or set-up after the sale are not subject to tax.
   2. (2) A retail sale of a farm trailer is not subject to the motor vehicle sales and use tax if it is used primarily on a farm or ranch in the production of food for human consumption, grass, feed for any form of animal life, or other livestock or agricultural products to be sold in the regular course of business. Farm trailers primarily used by the original producer in processing, packing, or marketing his own livestock or agricultural products are also not subject to motor vehicle sales and use tax.
   3. (3) A retail sale of a farm trailer used exclusively in processing, packing, or marketing agricultural products by an agricultural cooperative or gin are subject to the tax, unless the cooperative can prove the cooperative itself is the original producer of all agricultural products being processed, packed, or marketed, and that those functions are being done at a location operated by the cooperative.

Source Note:The provisions of this §3.72 adopted to be effective December 6, 1996, 21 TexReg 11487.