Enrolled Bill Summary

House Bill 236	House Author:  Rodriguez et al.
Effective:  9-1-09	Senate Sponsor:  Watson

            Current law provides that the motor vehicle sales and use tax does not apply to a vehicle that is driven by or used for the transportation of an orthopedically handicapped individual or that has been modified for such purposes or will be so modified within two years of the purchase date. House Bill 236 amends provisions of the Tax Code relating to that exemption to prohibit the seller of a motor vehicle from collecting the tax if the purchaser signs at the time of the purchase an exemption certificate, on a form designated by the comptroller of public accounts and containing sufficient information for the comptroller to establish qualification for the exemption, and presents any other documentation or information the comptroller requires by rule. The bill establishes that the seller may rely on a properly executed and signed exemption certificate and does not have a duty to investigate the propriety of a certificate that is valid on the certificate's face. A seller who relies on such a certificate is released from liability for the payment of the tax that otherwise would be due.  The bill requires the comptroller to adopt associated rules and designate the required form and make it available to motor vehicle dealers and the public not later than December 1, 2009. Provisions of the bill apply to the sale of a motor vehicle on or after January 1, 2010.