73R4116 CBH-F
By Berlanga H.B. No. 995
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the collection of the motor vehicle sales tax on a
1-3 motor vehicle sold using seller financing.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 152.001, Tax Code, is amended by adding
1-6 Subdivision (16) to read as follows:
1-7 (16) "Seller-financed sale" means a retail sale of a
1-8 motor vehicle by a dealer licensed under Article 6686, Revised
1-9 Statutes, in which the seller collects all or part of the total
1-10 consideration in periodic payments and retains a lien on the motor
1-11 vehicle until all payments have been received. The term does not
1-12 include a:
1-13 (A) retail sale of a motor vehicle in which a
1-14 person other than the seller provides the consideration for the
1-15 sale and retains a lien on the motor vehicle as collateral;
1-16 (B) lease; or
1-17 (C) rental.
1-18 SECTION 2. Section 152.021(a), Tax Code, is amended to read
1-19 as follows:
1-20 (a) A tax is imposed on every retail sale of every motor
1-21 vehicle sold in this state. Except as provided by Section 152.047,
1-22 the <The> tax is an obligation of and shall be paid by the
1-23 purchaser of the motor vehicle.
1-24 SECTION 3. Sections 152.041(b) and (c), Tax Code, are
2-1 amended to read as follows:
2-2 (b) Except as provided by Section 152.069, the <The> tax
2-3 assessor-collector may not accept an application unless the tax and
2-4 any penalty is paid.
2-5 (c) Except as provided by Section 152.047, the <The> tax
2-6 imposed by Section 152.021 of this code is due on the 20th working
2-7 day after the day that the motor vehicle is delivered to the
2-8 purchaser.
2-9 SECTION 4. Subchapter C, Chapter 152, Tax Code, is amended
2-10 by adding Sections 152.047 and 152.048 to read as follows:
2-11 Sec. 152.047. COLLECTION OF TAX ON SELLER-FINANCED SALE.
2-12 (a) Except as inconsistent with this chapter and rules adopted
2-13 under this chapter, the seller of a motor vehicle shall report and
2-14 pay the tax imposed on a seller-financed sale to the comptroller on
2-15 the seller's receipts from seller-financed sales in the same manner
2-16 as the sales tax is reported and paid by a retailer under Chapter
2-17 151.
2-18 (b) The seller shall add the tax imposed on a
2-19 seller-financed sale to the sales price of the vehicle sold, and
2-20 when added, the tax is:
2-21 (1) a part of the sales price;
2-22 (2) a debt owed to the seller by the purchaser; and
2-23 (3) recoverable at law in the same manner as the sales
2-24 price.
2-25 (c) Regardless of the accounting method used by the seller,
2-26 the seller shall collect and pay the tax imposed on a
2-27 seller-financed sale to the comptroller as the seller receives the
3-1 proceeds of the sale.
3-2 (d) If the seller fails to apply, not later than the 60th
3-3 day after the date the motor vehicle is delivered to the purchaser,
3-4 for registration and a Texas certificate of title for a motor
3-5 vehicle sold in a seller-financed sale in accordance with Section
3-6 152.069, the seller is liable for all unpaid tax on the total
3-7 consideration, and the tax is due and must be sent to the
3-8 comptroller with the first report after the expiration of the
3-9 prescribed period.
3-10 (e) If a seller factors, assigns, or otherwise transfers the
3-11 right to receive payments, all unpaid tax is due on the total
3-12 consideration not reported at the time the agreement is factored,
3-13 assigned, or otherwise transferred. The seller shall report and
3-14 submit the tax in the report period in which the right to receive
3-15 the payment is factored, assigned, or otherwise transferred. The
3-16 seller may not take a deduction in the amount of tax due if a
3-17 transfer at a discount is made.
3-18 (f) The comptroller may proceed against the purchaser in a
3-19 seller-financed sale for the amount of any tax not paid by the
3-20 purchaser.
3-21 Sec. 152.048. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. (a)
3-22 All gross receipts of a seller required to obtain a permit under
3-23 Section 152.065 are presumed to be subject to the computation of
3-24 the tax imposed on a seller-financed sale.
3-25 (b) The presumption provided by Subsection (a) does not
3-26 apply to receipts:
3-27 (1) on which a tax imposed under other law is computed
4-1 and paid to the comptroller; or
4-2 (2) for which a properly completed resale or exemption
4-3 certificate is accepted by the seller.
4-4 (c) The seller may overcome the presumption under Subsection
4-5 (a) by credible evidence that the receipts are not from a
4-6 seller-financed sale or that the tax on those receipts has been
4-7 sent to the comptroller.
4-8 SECTION 5. Subchapter D, Chapter 152, Tax Code, is amended
4-9 by adding Section 152.0635 to read as follows:
4-10 Sec. 152.0635. RECORDS OF CERTAIN SELLERS. (a) In addition
4-11 to the requirements prescribed by Section 152.063, a seller engaged
4-12 in seller-financed sales who has a permit under Section 152.065
4-13 shall keep the records required by this section.
4-14 (b) For seller-financed sales, the seller shall keep at the
4-15 seller's principal office for at least four years from the date on
4-16 which the seller receives the final payment for the motor vehicle:
4-17 (1) the lienholder's copy of the receipt for title
4-18 application, registration, and motor vehicle tax issued by a county
4-19 tax assessor-collector; and
4-20 (2) a ledger or other document containing a complete
4-21 record of the payment history for that motor vehicle, including:
4-22 (A) the name and address of the purchaser;
4-23 (B) the total consideration;
4-24 (C) the amount of the down payment received at
4-25 the time the motor vehicle is sold;
4-26 (D) the date and amount of each subsequent
4-27 payment;
5-1 (E) the date of sale; and
5-2 (F) the date of any repossession.
5-3 (c) For retail sales paid in full at the time of sale, the
5-4 seller shall keep at the seller's principal office for at least
5-5 four years from the date of the sale documentation of complete
5-6 payment in the form of:
5-7 (1) a copy of the payment instrument or a receipt for
5-8 cash received; and
5-9 (2) a copy of the receipt for title application,
5-10 registration, and motor vehicle tax issued by the county tax
5-11 assessor-collector or a statement by the purchaser that is signed
5-12 and dated and indicates the date that each of the documents
5-13 necessary to apply for the title, register the vehicle, and pay the
5-14 motor vehicle sales tax were provided to the purchaser by the
5-15 seller.
5-16 (d) The document required under Subsection (c)(2) shall also
5-17 include a statement that the seller advised the purchaser that the
5-18 purchaser must pay a tax to the county tax assessor-collector.
5-19 (e) For sales for resale, the seller shall keep at the
5-20 seller's principal office for at least four years from the date of
5-21 the sale the purchaser's written statement of resale on a form
5-22 prescribed by the comptroller.
5-23 SECTION 6. Section 152.065, Tax Code, is amended to read as
5-24 follows:
5-25 Sec. 152.065. REQUIRED PERMITS <REGISTRATION AS A RETAILER;
5-26 PERMIT>. A motor vehicle owner required to collect, report, and
5-27 pay a tax on gross rental receipts imposed by this chapter and a
6-1 seller required to collect, report, and pay a tax on a
6-2 seller-financed sale shall register as a retailer with the
6-3 comptroller in the same manner as is required of a retailer under
6-4 Subchapter F, <of> Chapter 151 <of this code. The owner shall also
6-5 obtain from the comptroller a motor vehicle retailer's permit>.
6-6 SECTION 7. Section 152.068(a), Tax Code, is amended to read
6-7 as follows:
6-8 (a) The comptroller may revoke or suspend any one or more of
6-9 the <motor vehicle retailer's> permits held by a person if that
6-10 person fails to comply with a provision of this chapter or with a
6-11 rule of the comptroller relating to a tax imposed by this chapter.
6-12 SECTION 8. Subchapter D, Chapter 152, Tax Code, is amended
6-13 by adding Section 152.069 to read as follows:
6-14 Sec. 152.069. REGISTRATION OF MOTOR VEHICLE USING
6-15 SELLER-FINANCING. (a) The seller of a motor vehicle sold in a
6-16 seller-financed sale shall apply for the registration of, and a
6-17 Texas certificate of title for, the motor vehicle in the name of
6-18 the purchaser to the appropriate county tax assessor-collector.
6-19 (b) The seller shall provide to the county tax
6-20 assessor-collector a joint affidavit as prescribed by Section
6-21 152.062 in lieu of the motor vehicle sales tax imposed by Section
6-22 152.021. The affidavit shall include the seller's permit
6-23 identification number issued by the comptroller.
6-24 SECTION 9. Section 152.103(a), Tax Code, is amended to read
6-25 as follows:
6-26 (a) A seller commits an offense if he fails to make and
6-27 retain complete records for the period of four years as provided by
7-1 this chapter <Section 152.063(a) of this code>.
7-2 SECTION 10. This Act takes effect September 1, 1993, and
7-3 applies to the sale of a motor vehicle on or after that date. The
7-4 sale of a motor vehicle before the effective date of this Act is
7-5 governed by the law in effect when the motor vehicle was sold, and
7-6 that law is continued in effect for that purpose.
7-7 SECTION 11. The importance of this legislation and the
7-8 crowded condition of the calendars in both houses create an
7-9 emergency and an imperative public necessity that the
7-10 constitutional rule requiring bills to be read on three several
7-11 days in each house be suspended, and this rule is hereby suspended.