Texas Tax Code

§ 11.252 — MOTOR VEHICLES LEASED FOR USE OTHER THAN PRODUCTION OF INCOME

TX § 11.252Title 1. PROPERTY TAX CODE · Part C. TAXABLE PROPERTY AND EXEMPTIONS · Ch. 11. TAXABLE PROPERTY AND EXEMPTIONS · Art. B. EXEMPTIONS

(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

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