(a) Motor vehicle:
  (1) includes a self-propelled unit designed to transport persons or property on a public highway and includes trailers, semitrailers, house trailers, and motorcycles;
  (2) does not include:
    (A) a device moved only by human power;
    (B) a device used exclusively on stationary rails or tracks;
    (C) a mobile office;
    (D) a unit that has been declared a total loss by an insurance company registered to transact business in this or another state;
    (E) a unit where the certificate of title has been or is being surrendered for:
      (i) a salvage certificate issued pursuant to the Certificate of Title Act, Texas Civil Statutes, Article 6687-1;
      (ii) a certificate of authority issued pursuant to the Litter Abatement Act, Texas Civil Statutes, Article 4477-9a;
      (iii) a nonrepairable motor vehicle certificate of title issued pursuant to the Certificate of Title Act, Texas Civil Statutes, Article 6687-1; or
      (iv) an ownership document issued by another state if the document is comparable to a document issued pursuant to clauses (i), (ii), or (iii) of this subparagraph; and
    (F) a road-building machine.
(b) The sale or use of a motor vehicle described in subsection (a)(1) of this section is subject to the provisions of the Tax Code, Chapter 152, Taxes on Sale, Rental, and Use of Motor Vehicles.
(c) The sale or use of a unit described in subsection (a)(2) of this section is subject to the provisions of the Tax Code, Chapter 151, Limited Sales, Excise and Use Tax. Sellers and purchasers should refer to §3.285 of this title (relating to Resale Certificate; Sales for Resale) and §3.286 of this title (relating to Seller's and Purchaser's Responsibilities).
(d) The sale or use of a unit that had previously met the description in subsection (a)(2) of this section but that has been repaired and is now eligible to be issued a regular certificate of title pursuant to the Certificate of Title Act, Texas Civil Statutes, Article 6687-1, is subject to the provisions of the Tax Code, Chapter 152, Taxes on Sale, Rental, and Use of Motor Vehicles.

Source Note: The provisions of this §3.86 adopted to be effective June 26, 1997, 22 TexReg 5841.