1-1 By: Montford S.B. No. 892
1-2 (In the Senate - Filed March 11, 1993; March 15, 1993, read
1-3 first time and referred to Committee on Finance; April 22, 1993,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 13, Nays 0; April 22, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 COMMITTEE SUBSTITUTE FOR S.B. No. 892 By: Montford
1-22 A BILL TO BE ENTITLED
1-23 AN ACT
1-24 relating to simplifying the application, calculation,
1-25 administration and reporting of, and the calculation of interest
1-26 on, certain taxes; providing penalties.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. Section 79, Public Utility Regulatory Act
1-29 (Article 1446c, Vernon's Texas Civil Statutes), is amended to read
1-30 as follows:
1-31 Sec. 79. PAYMENT DATES; DELINQUENCY. All assessments shall
1-32 be due on August 15 of each year. Any public utility may instead
1-33 make quarterly payments due on August 15, November 15, February 15,
1-34 and May 15 of each year. There shall be assessed as a penalty an
1-35 additional fee of 10 percent of the amount due for any late
1-36 payment. Fees delinquent for more than 30 days shall draw interest
1-37 at the rate of 12 percent per annum<, compounded monthly,> on the
1-38 assessment and penalty due.
1-39 SECTION 2. Subsection (b), Section 4, Article 6060, Revised
1-40 Statutes, is amended to read as follows:
1-41 (b) A tax imposed by this article that becomes delinquent
1-42 draws interest at the rate of 12 percent a year<, compounded
1-43 monthly,> beginning on the 60th day after the date the tax becomes
1-44 delinquent until the date the tax is paid.
1-45 SECTION 3. Section 101.007, Tax Code, is amended to read as
1-46 follows:
1-47 Sec. 101.007. References to State Officers. A reference in
1-48 this code <title> to the comptroller, the treasurer, or another
1-49 officer includes authorized representatives and employees of the
1-50 officer unless the provision indicates that only the officer is
1-51 intended in the reference.
1-52 SECTION 4. Subchapter A, Chapter 111, Tax Code, is amended
1-53 by adding Section 111.023 to read as follows:
1-54 Sec. 111.023. WRITTEN AUTHORIZATION. The comptroller may
1-55 require that a report, return, declaration, claim for refund, or
1-56 other document that is required or permitted to be filed with the
1-57 comptroller and that is submitted by an attorney, accountant, or
1-58 other representative of a person on behalf of the person be
1-59 accompanied by express written authorization of the person in whose
1-60 name or on whose behalf it is purportedly submitted.
1-61 SECTION 5. Subsection (a), Section 111.060, Tax Code, is
1-62 amended to read as follows:
1-63 (a) The yearly interest rate on all delinquent taxes imposed
1-64 by this title is 12 percent<, compounded monthly>.
1-65 SECTION 6. Subsections (b) and (c), Section 111.104, Tax
1-66 Code, are amended to read as follows:
1-67 (b) A tax refund claim may be filed with the comptroller by
1-68 the person who paid the tax directly to the state or by that <the>
2-1 person's attorney, other duly authorized representative <assignee>,
2-2 or <other> successor and may not be assigned.
2-3 (c) A claim for a refund must:
2-4 (1) be written;
2-5 (2) state the grounds on which the claim is founded;
2-6 <and>
2-7 (3) contain any other information that the comptroller
2-8 requires; and
2-9 (4) be filed before the expiration of the applicable
2-10 limitation period as provided by this code or before the expiration
2-11 of six months after a jeopardy or deficiency determination becomes
2-12 final, whichever period expires later.
2-13 SECTION 7. Subchapter C, Chapter 111, Tax Code, is amended
2-14 by adding Section 111.1042 to read as follows:
2-15 Sec. 111.1042. TAX REFUND: INFORMAL REVIEW. (a) The
2-16 comptroller may informally review a claim for refund filed in
2-17 accordance with this title and may grant or deny it, in whole or in
2-18 part.
2-19 (b) An informal review under this section is not a hearing
2-20 or contested case under the Administrative Procedure and Texas
2-21 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
2-22 (c) This section does not impair the right to a hearing on a
2-23 claim for refund provided in Section 111.105.
2-24 SECTION 8. Subsections (a) and (b), Section 111.105, Tax
2-25 Code, are amended to read as follows:
2-26 (a) A person claiming a refund under Section 111.104 of this
2-27 code is entitled to a <an oral> hearing on the claim if the person
2-28 requests a hearing in accordance with procedures prescribed by the
2-29 comptroller. The person is entitled to 20 days' notice of the time
2-30 and place of the hearing.
2-31 (b) A decision of the comptroller following a hearing on a
2-32 claim for a refund becomes final 20 days after service on the
2-33 claimant of the notice of the order or decision.
2-34 SECTION 9. Section 111.107, Tax Code, is amended to read as
2-35 follows:
2-36 Sec. 111.107. When Refund or Credit is Permitted. Except as
2-37 otherwise expressly provided, a <A> person may request a refund or
2-38 a credit or the comptroller may make a refund or issue a credit for
2-39 the overpayment of a tax imposed by this title at any time before
2-40 the expiration of the period during which the comptroller may
2-41 assess a deficiency for the tax and not thereafter unless the
2-42 refund or credit is requested:
2-43 (1) under Subchapter B of Chapter 112 <of this code>
2-44 and the refund is made or the credit is issued under a court order;
2-45 (2) under the provision of Section 111.104(c)(3)
2-46 applicable to a refund claim filed after a jeopardy or deficiency
2-47 determination becomes final; <or>
2-48 (3) under Chapter 153; or
2-49 (4) under Section 151.318(g) or (n) <of this code>.
2-50 SECTION 10. Section 111.108, Tax Code, is amended to read as
2-51 follows:
2-52 Sec. 111.108. Recovery of Refund or Credit. (a) Within
2-53 four years after the date that a refund is erroneously paid or an
2-54 amount of credit is erroneously allowed, the <The> comptroller may
2-55 recover the <an amount of> refund <erroneously paid> or <an amount
2-56 of> credit <erroneously allowed> in a jeopardy or deficiency
2-57 determination <issued within four years after the date of refund or
2-58 credit>.
2-59 (b) This section does not extend or toll a period of
2-60 limitation under this title for filing a timely claim for a refund.
2-61 SECTION 11. Section 111.205, Tax Code, is amended to read as
2-62 follows:
2-63 Sec. 111.205. Exception to Assessment Limitation. (a) The
2-64 limitation provided by Section 111.201 of this code does not apply
2-65 and the comptroller may assess a tax imposed by this title at any
2-66 time if:
2-67 (1) with intent to evade the tax, the taxpayer files a
2-68 false or fraudulent report;
2-69 (2) no report for the tax has been filed; or
2-70 (3) information contained in the report of the tax
3-1 contains a gross error <and the amount of tax due and payable after
3-2 correction of the error is 25 percent or more greater than the
3-3 amount initially reported; or>
3-4 <(4) a taxpayer has filed a timely claim for refund
3-5 with the comptroller; however, the assessment is limited to the
3-6 period and type of tax for which the refund is sought>.
3-7 (b) In this section "gross error" means the amount of tax
3-8 due and payable after correction if the error is equal to or
3-9 exceeds 25 percent of the amount initially reported.
3-10 SECTION 12. Subchapter D, Chapter 111, Tax Code, is amended
3-11 by adding Section 111.2051 to read as follows:
3-12 Sec. 111.2051. ASSESSMENT WHEN REFUND CLAIMED.
3-13 (a) Notwithstanding the expiration of any period of limitation
3-14 provided under this title, the comptroller may assess a tax imposed
3-15 by this title if a taxpayer files a timely claim for refund with
3-16 the comptroller.
3-17 (b) An assessment authorized by this section is limited to
3-18 the tax payment period and type of tax for which the refund is
3-19 sought and must be made before the later of:
3-20 (1) four years after the date the refund claim is
3-21 filed with the comptroller; or
3-22 (2) the expiration of the applicable limitation period
3-23 for making assessments as otherwise provided by this title.
3-24 (c) This section extends only the time in which the
3-25 comptroller may assess the tax and does not extend or toll a period
3-26 of limitation under this title for filing a timely claim for
3-27 refund.
3-28 SECTION 13. Section 151.103, Tax Code, is amended to read as
3-29 follows:
3-30 Sec. 151.103. Collection by Retailer; Purchaser's Receipt.
3-31 (a) A retailer engaged in business in this state who makes a sale
3-32 of a taxable item for storage, use, or consumption in this state
3-33 shall collect the use tax that is due from the purchaser and give
3-34 the purchaser a receipt for the tax payment. When the amount of
3-35 use tax is added:
3-36 (1) it becomes a part of the sales price;
3-37 (2) it is a debt of the purchaser to the seller until
3-38 paid; and
3-39 (3) if unpaid, it is recoverable at law in the same
3-40 manner as the original sales price.
3-41 (b) The purchaser's receipt must be issued in the form and
3-42 manner prescribed by the comptroller.
3-43 (c) When several taxable items are sold together and at the
3-44 same time, the use tax is determined on the sum of the sales prices
3-45 of the items sold exclusive of any item the sale of which is
3-46 exempted by this chapter.
3-47 SECTION 14. Subsection (a), Section 151.308, Tax Code, is
3-48 amended to read as follows:
3-49 (a) The following are exempted from the taxes imposed by
3-50 this chapter:
3-51 (1) oil as taxed by Chapter 202;
3-52 (2) sulphur as taxed by Chapter 203;
3-53 (3) motor fuels and special fuels as defined, taxed,
3-54 or exempted by Chapter 153;
3-55 (4) cement as taxed by Chapter 181;
3-56 (5) motor vehicles, trailers, and semitrailers as
3-57 defined, taxed, or exempted by Chapter 152 or 157, other than a
3-58 mobile office as defined by Section 152.001(16);
3-59 (6) mixed beverages, ice, or nonalcoholic beverages
3-60 and the preparation or service of these items if the receipts are
3-61 taxable by Chapter 202, Alcoholic Beverage Code;
3-62 (7) alcoholic beverages when sold to the holder of a
3-63 private club registration permit or to the agent or employee of the
3-64 holder of a private club registration permit if the holder or agent
3-65 or employee is acting as the agent of the members of the club and
3-66 if the beverages are to be served on the premises of the club;
3-67 (8) oil well service as taxed by Subchapter E, Chapter
3-68 191; and
3-69 (9) insurance premiums subject to gross premiums
3-70 taxes.
4-1 SECTION 15. Section 151.328, Tax Code, is amended by
4-2 amending Subsection (a) and adding Subsections (f) and (g) to read
4-3 as follows:
4-4 (a) Aircraft are exempted from the taxes imposed by this
4-5 chapter if:
4-6 (1) sold to a person using the aircraft as a
4-7 certificated or licensed carrier of persons or property;
4-8 (2) sold to a person and used for the exclusive
4-9 purpose of training or instructing pilots in a licensed course of
4-10 instruction; <or>
4-11 (3) sold to a foreign government; or
4-12 (4) sold to a person for use and registration in
4-13 another state or nation before any use in this state other than
4-14 flight training in the aircraft and the transportation of the
4-15 aircraft out of this state <or to persons who are not residents of
4-16 this state>.
4-17 (f) To qualify for the exemption provided under Subsection
4-18 (a)(4), the person purchasing the aircraft in this state must sign
4-19 at the time of purchase an exemption certificate that:
4-20 (1) is designated as an exemption certificate for the
4-21 purchase of an aircraft for out-of-state registration and use;
4-22 (2) is on a form designated by the comptroller;
4-23 (3) contains all information the comptroller considers
4-24 reasonable;
4-25 (4) is signed by the purchaser at the time of the
4-26 purchase; and
4-27 (5) provides that that purchaser, by signing the
4-28 certificate, authorizes the comptroller to provide a copy of the
4-29 certificate to the state or nation of intended use and
4-30 registration.
4-31 (g) A person commits an offense if the person gives an
4-32 exemption certificate required under Subsection (f) to a seller for
4-33 an aircraft that the person knows, at the time of purchase, will be
4-34 used in a manner other than that expressed in the exemption
4-35 certificate or the person gives an exemption certificate with
4-36 fraudulent intent or intent to evade wrongfully the payment of the
4-37 tax imposed under this chapter. An offense under this subsection
4-38 is a felony of the third degree.
4-39 SECTION 16. Section 151.330, Tax Code, is amended by adding
4-40 Subsections (h) and (i) to read as follows:
4-41 (h) The sale of tangible personal property to a common
4-42 carrier is exempted from the sales tax imposed by Subchapter C if
4-43 the tangible personal property:
4-44 (1) is shipped to a point outside this state using the
4-45 purchasing carrier's facilities under a bill of lading; and
4-46 (2) is actually transported to the out-of-state
4-47 destination for use by the carrier in the conduct of its business
4-48 as a common carrier outside this state.
4-49 (i) The storage or use of tangible personal property
4-50 acquired outside this state for use as a repair or replacement part
4-51 for and actually affixed in this state to a self-propelled vehicle
4-52 that is used as a licensed and certificated common carrier of
4-53 persons or property is exempted from the use tax imposed by
4-54 Subchapter D.
4-55 SECTION 17. Subchapter H, Chapter 151, Tax Code, is amended
4-56 by adding Section 151.350 to read as follows:
4-57 Sec. 151.350. LABOR TO REPAIR CERTAIN PROPERTY. (a) Labor
4-58 to repair real or tangible personal property is exempted from the
4-59 taxes imposed by this chapter if:
4-60 (1) the amount of the charge for labor is separately
4-61 itemized; and
4-62 (2) the repair is to property damaged within a
4-63 disaster area by the condition that caused the area to be declared
4-64 a disaster area.
4-65 (b) The exemption under this section does not apply to
4-66 tangible personal property transferred as part of the repair.
4-67 (c) In this section, "disaster area" means:
4-68 (1) an area declared a disaster area by the governor
4-69 under Chapter 418, Government Code; or
4-70 (2) an area declared a disaster area by the president
5-1 of the United States under 42 U.S.C. Section 5141.
5-2 SECTION 18. Section 152.001, Tax Code, is amended by
5-3 amending Subdivision (4) and adding Subdivision (16) to read as
5-4 follows:
5-5 (4) "Motor Vehicle" does not include:
5-6 (A) a device moved only by human power;
5-7 (B) a device used exclusively on stationary
5-8 rails or tracks; <or>
5-9 (C) road-building machinery; or
5-10 (D) a mobile office.
5-11 (16) "Mobile office" means a trailer designed to be
5-12 used as an office, sales outlet, or other workplace.
5-13 SECTION 19. Section 152.044, Tax Code, is amended to read as
5-14 follows:
5-15 Sec. 152.044. Payment by Seller. If the comptroller on an
5-16 audit of the records of a seller finds that the amount of tax due
5-17 was incorrectly reported on a joint statement <affidavit> and that
5-18 the amount of tax paid was less than the amount due or that the
5-19 seller failed to execute and deliver to the purchaser a joint
5-20 statement <affidavit> and any other documents necessary to register
5-21 the vehicle, the seller and purchaser are jointly and severally
5-22 <is> liable for the amount of the tax determined to be due.
5-23 SECTION 20. Section 152.062, Tax Code, is amended to read as
5-24 follows:
5-25 Sec. 152.062. Required STATEMENTS <Affidavits>. (a) The
5-26 persons obligated by this chapter to pay taxes on the transaction
5-27 shall file a joint statement <affidavit> with the tax
5-28 assessor-collector of the county in which the application for
5-29 registration and for a Texas certificate of title is made.
5-30 (b) The statement <affidavit> must be in the following form:
5-31 (1) if a motor vehicle is sold, the seller and
5-32 purchaser shall make a joint statement of <affidavit stating> the
5-33 then value in dollars of the total consideration for the vehicle;
5-34 or
5-35 (2) if the ownership of a motor vehicle is transferred
5-36 as the result of a gift or even exchange, the principal parties
5-37 shall make a joint statement describing <affidavit stating> the
5-38 nature of the transaction.
5-39 (c) If a party to a sale, even exchange, or gift is a
5-40 corporation, the president, vice-president, secretary, manager, or
5-41 other authorized officer of the corporation shall make the
5-42 statement <affidavit> for the corporation.
5-43 (d) The comptroller shall promulgate rules to govern the
5-44 enforcement of this section. The rules shall include standard
5-45 value guidelines to assist a tax assessor-collector in determining
5-46 the truth and accuracy of material facts in a joint statement
5-47 <affidavit>.
5-48 (e) The tax assessor-collector shall examine each joint
5-49 statement <affidavit> for the purpose of determining the truth and
5-50 accuracy of the information it contains. If the tax
5-51 assessor-collector or the comptroller has reason to question the
5-52 truth of the information in a statement <an affidavit>, or if any
5-53 material fact fails to meet the guidelines promulgated by the
5-54 comptroller, the tax assessor-collector or the comptroller shall
5-55 require any party to the statement <affidavit> to furnish
5-56 substantiation of information contained in the statement
5-57 <affidavit>.
5-58 (f) The tax assessor-collector shall immediately report to
5-59 the nearest peace officer and to the comptroller, the name and
5-60 address of each party whose name is signed on a joint statement
5-61 <affidavit> found to be false in any material fact.
5-62 (g) The tax assessor-collector shall keep a copy of each
5-63 statement <affidavit> and any substantiating materials required to
5-64 be furnished in connection therewith until it is called for by the
5-65 comptroller for auditing or by any court of competent jurisdiction.
5-66 SECTION 21. Section 152.063, Tax Code, is amended by adding
5-67 Subsections (d), (e), (f), and (g) to read as follows:
5-68 (d) A seller's business records must show the total receipts
5-69 from all sources of income and expense, including transactions
5-70 involving motor vehicles.
6-1 (e) For a retail sale for which the seller receives full
6-2 payment at the time of sale, the seller shall keep, at the seller's
6-3 principal office for at least four years from the date of the sale,
6-4 documentation of complete payment in the form of:
6-5 (1) a copy of the payment instrument or a receipt for
6-6 cash received; and
6-7 (2) a copy of the receipt for title application,
6-8 registration, and motor vehicle tax issued by the county tax
6-9 assessor-collector or a written statement by the purchaser that:
6-10 (A) is signed and dated;
6-11 (B) indicates the date on which the seller
6-12 provided to the purchaser each of the documents necessary to apply
6-13 for the title, register the vehicle, and pay the motor vehicle
6-14 sales tax; and
6-15 (C) includes a statement that the seller advised
6-16 the purchaser that the purchaser must pay a tax to the county tax
6-17 assessor-collector.
6-18 (f) For a sale for resale, the seller shall keep, at the
6-19 seller's principal office for at least four years from the date of
6-20 the sale, the purchaser's written statement of resale on a form
6-21 prescribed by the comptroller.
6-22 (g) Any person, other than the seller's employee, acting for
6-23 the seller of a motor vehicle has the same record-keeping
6-24 responsibilities as the seller.
6-25 SECTION 22. Section 152.089, Tax Code, is amended to read as
6-26 follows:
6-27 Sec. 152.089. Vehicles Taxed by Other Law. The taxes
6-28 imposed by this chapter do not apply to motor vehicles, trailers,
6-29 and semitrailers on which tax is imposed by <taxed under> Chapter
6-30 157 of this code, and the taxes imposed by Chapter 157 of this code
6-31 do not apply to motor vehicles on which tax is imposed by <taxed
6-32 under> this chapter; provided that if a motor vehicle, trailer, or
6-33 semitrailer on which tax is imposed by <taxed under> Chapter 157 of
6-34 this code ceases to be used as an interstate motor vehicle,
6-35 trailer, or semitrailer within one year of either the date the
6-36 vehicle was purchased in Texas or the date the vehicle was first
6-37 brought into Texas, the taxes imposed by this chapter will apply at
6-38 that time.
6-39 SECTION 23. Section 152.092, Tax Code, is amended to read as
6-40 follows:
6-41 Sec. 152.092. Motor Vehicles Transported Out of State.
6-42 (a) The taxes imposed by this chapter do not apply to the retail
6-43 sale of a motor vehicle that is transported out of state, prior to
6-44 any use in this state other than the transportation of the vehicle
6-45 out of state, for use exclusively outside this state.
6-46 (b) To qualify for the exemption provided by this section
6-47 the purchaser of a motor vehicle must sign at the time of the
6-48 purchase an exemption certificate that:
6-49 (1) is on a form designated by the comptroller;
6-50 (2) contains all information the comptroller considers
6-51 reasonable;
6-52 (3) is signed by the purchaser; and
6-53 (4) provides that the purchaser, by signing the
6-54 certificate, authorizes the comptroller to provide a copy of the
6-55 certificate to the state of intended use and registration.
6-56 SECTION 24. Section 152.101, Tax Code, is amended to read as
6-57 follows:
6-58 Sec. 152.101. Penalty for Signing False STATEMENT OR
6-59 CERTIFICATE <Affidavit>. (a) A person commits an offense if the
6-60 person signs a joint statement <affidavit> required by Section
6-61 152.062 or a certificate required by Section 152.092(b) <of this
6-62 code> and knows that it is false in any material fact.
6-63 (b) An offense under this section is a felony punishable by
6-64 imprisonment for not less than two nor more than five years or a
6-65 fine of not more than $1,000, or both.
6-66 SECTION 25. Subsection (a), Section 152.103, Tax Code, is
6-67 amended to read as follows:
6-68 (a) A seller commits an offense if the seller <he> fails to
6-69 make and retain complete records for the period of four years as
6-70 provided by Subchapter D <Section 152.063(a) of this code>.
7-1 SECTION 26. Subdivision (9), Section 157.001, Tax Code, is
7-2 amended to read as follows:
7-3 (9) "Purchase" means a lease of or a transfer of title
7-4 to a motor vehicle, trailer, or semitrailer for consideration
7-5 <includes a lease for a time period exceeding 180 days except the
7-6 lease of a motor vehicle with a driver>.
7-7 SECTION 27. Subdivision (10), Section 152.001, Tax Code, is
7-8 amended to read as follows:
7-9 (10) "Preceding year" means the period of 12
7-10 consecutive calendar months immediately prior to January
7-11 <September> 1 or any other day that the comptroller may designate.
7-12 SECTION 28. Section 157.001, Tax Code, is amended by adding
7-13 Subdivision (11) to read as follows:
7-14 (11) "Lease" means an agreement by an owner of a motor
7-15 vehicle, trailer, or semitrailer to give to another for longer than
7-16 180 days under a single agreement exclusive use of the vehicle
7-17 without a driver for consideration.
7-18 SECTION 29. Section 157.101, Tax Code, is amended to read as
7-19 follows:
7-20 Sec. 157.101. TAXES <TAX> IMPOSED. Sales <There is levied a
7-21 motor vehicle sales> and use taxes are imposed <tax> on interstate
7-22 motor vehicles, trailers, and semitrailers:
7-23 (1) purchased in this state or purchased outside this
7-24 state and brought into this state by a motor carrier that is a
7-25 resident of this state or is domiciled or doing business in this
7-26 state;
7-27 (2) hired with a driver by a motor carrier that is a
7-28 resident of this state or is domiciled or doing business in this
7-29 state to transport persons or property over the carrier's routes
7-30 and under the authority of the carrier's permits; or
7-31 (3) contracted by a motor carrier that is a resident
7-32 <operated by motor carriers which are residents> of this state or
7-33 is <are> domiciled or doing business in this state for use as
7-34 trip-leased equipment.
7-35 SECTION 30. Section 160.001, Tax Code, is amended by adding
7-36 Subdivisions (10) and (11) to read as follows:
7-37 (10) "Seller-financed sale" means a retail sale of a
7-38 taxable boat or boat motor in which the seller collects all or part
7-39 of the total consideration in periodic payments and retains a lien
7-40 on the boat or boat motor until all payments have been received.
7-41 The term does not include a retail sale of a taxable boat or boat
7-42 motor in which a person other than the seller provides the
7-43 consideration for the sale and retains a lien on the boat or boat
7-44 motor as collateral.
7-45 (11) "Title" means the certificate of title document
7-46 as provided for under Chapter 31, Parks and Wildlife Code.
7-47 SECTION 31. Section 160.046, Tax Code, is amended to read as
7-48 follows:
7-49 Sec. 160.046. RECORDS. (a) The seller of a taxable boat or
7-50 motor shall keep at the seller's <his> principal office for at
7-51 least four years from the date of the sale a complete record of
7-52 each sale of a taxable boat or motor. The record must include a
7-53 copy of the invoice of each item sold. The invoice copy must show
7-54 the full price of the taxable boat or motor and the itemized price
7-55 of all its accessories. All sales and supporting records of a
7-56 seller are open to inspection and audit by the comptroller.
7-57 (b) A seller's business records must show the total receipts
7-58 from all sources of income and expense, including transactions
7-59 involving taxable boats and motors.
7-60 (c) For a retail sale for which the seller receives full
7-61 payment at the time of sale, the seller shall keep, at the seller's
7-62 principal office for at least four years from the date of the sale,
7-63 documentation of complete payment in the form of:
7-64 (1) a copy of the payment instrument or a receipt for
7-65 cash received; and
7-66 (2) a copy of the receipt for title application,
7-67 registration, and boat or boat motor tax issued by the county tax
7-68 assessor-collector or the department or a written statement by the
7-69 purchaser that:
7-70 (A) is signed and dated;
8-1 (B) indicates the date on which the seller
8-2 provided to the purchaser each of the documents necessary to apply
8-3 for the title, register the taxable boat or boat motor, and pay the
8-4 boat or boat motor tax; and
8-5 (C) includes a statement that the seller advised
8-6 the purchaser that the purchaser must pay a tax to the county tax
8-7 assessor-collector or the department.
8-8 (d) For a seller-financed sale, the seller shall keep at the
8-9 seller's principal office for at least four years from the date on
8-10 which the seller receives the final payment for the taxable boat or
8-11 motor:
8-12 (1) the lienholder's copy of the receipt for title
8-13 application, registration, and boat or boat motor tax issued by a
8-14 county tax assessor-collector or the department; and
8-15 (2) a ledger or other document containing a complete
8-16 record of the payment history for that boat or boat motor,
8-17 including:
8-18 (A) the name and address of the purchaser;
8-19 (B) the total consideration;
8-20 (C) the amount of the down payment received at
8-21 the time the boat or boat motor is sold;
8-22 (D) the date and amount of each subsequent
8-23 payment;
8-24 (E) the date of sale; and
8-25 (F) the date of any repossession.
8-26 (e) For a sale for resale, the seller shall keep, at the
8-27 seller's principal office for at least four years from the date of
8-28 the sale, the purchaser's written statement of resale on a form
8-29 prescribed by the comptroller.
8-30 (f) Any person, other than the seller's employee, acting for
8-31 the seller of a taxable boat or boat motor has the same
8-32 record-keeping responsibilities as the seller.
8-33 SECTION 32. Subchapter D, Chapter 160, Tax Code, is amended
8-34 by adding Section 160.062 to read as follows:
8-35 Sec. 160.062. PENALTY FOR SIGNING FALSE STATEMENTS. (a) A
8-36 person commits an offense if the person signs a joint affidavit
8-37 required by Section 160.042 and knows that it is false in any
8-38 material fact.
8-39 (b) An offense under this section is a third-degree felony.
8-40 SECTION 33. Subchapter A, Chapter 202, Tax Code, is amended
8-41 by adding Section 202.006 to read as follows:
8-42 Sec. 202.006. TAXPAYER IDENTIFICATION NUMBER. (a) Except
8-43 as otherwise provided by Subsection (b), each producer must obtain
8-44 a taxpayer identification number from the comptroller.
8-45 (b) A producer whose only ownership interest in the oil is a
8-46 royalty interest must obtain a tax identification number from the
8-47 comptroller only if the producer has elected to take the producer's
8-48 share of production in kind or if the comptroller determines that
8-49 the producer's activity or interest requires that a number be
8-50 assigned to protect the state's interest in the tax attributable to
8-51 the producer.
8-52 SECTION 34. Section 202.201, Tax Code, is amended to read as
8-53 follows:
8-54 Sec. 202.201. Producer's Report. (a) A producer authorized
8-55 by the comptroller to remit the tax due shall file with the
8-56 comptroller, on <On> or before the 25th day of each calendar month,
8-57 the report under this subsection and, as applicable, the report
8-58 under Subsection (d) showing the total <each producer or his
8-59 authorized agent shall file a report with the comptroller. The
8-60 report must contain the following information concerning> oil
8-61 produced, used, lost or stolen, or possessed and otherwise
8-62 unaccounted for by the producer during the preceding calendar
8-63 month. The report under this subsection must show:
8-64 (1) the number of barrels of oil produced;
8-65 (2) the counties in which oil was produced;
8-66 (3) the name, address, and taxpayer identification
8-67 number assigned by the comptroller of each first purchaser of oil
8-68 and for each the amount of oil purchased <names of the leases from
8-69 which the oil was produced>;
8-70 (4) the price, by amounts, received for the oil for
9-1 <name and address of> each first purchaser <of the oil>;
9-2 (5) the name of the lease from which the oil was
9-3 produced <price received for the oil from each first purchaser>;
9-4 and
9-5 (6) other information the comptroller may reasonably
9-6 require.
9-7 (b) If the report the producer is required to file shows
9-8 additional tax due, the producer must pay the additional tax when
9-9 he files the report. Notwithstanding any other provision of this
9-10 code, if the producer fails to remit a reasonable estimate of the
9-11 tax due in accordance with Section 202.1515 of this chapter, a
9-12 penalty of 10 percent of the delinquent required reasonable
9-13 estimate will be forfeited and due along with any additional tax
9-14 due with the report specified in this section.
9-15 (c) A producer whose only sales are to a purchaser who
9-16 remits the tax due under Section 202.153 is not required to file a
9-17 report on the oil sold.
9-18 (d) A producer shall file a crude oil special tax report
9-19 with the comptroller and pay the applicable tax imposed under this
9-20 chapter if any oil has been used, lost or stolen, or possessed and
9-21 otherwise unaccounted for by the producer after it has been
9-22 produced and measured. The producer must file the report on or
9-23 before the 25th day of the month following the month in which the
9-24 oil is used, lost or stolen, or possessed and otherwise unaccounted
9-25 for. The report must show:
9-26 (1) the total number of barrels of oil used, lost or
9-27 stolen, or possessed and otherwise unaccounted for by the producer;
9-28 (2) where the oil was used, lost or stolen, or
9-29 possessed and otherwise unaccounted for; and
9-30 (3) other information the comptroller may reasonably
9-31 require.
9-32 (e) A producer that is no longer in business shall notify
9-33 the comptroller of this fact on or before the 25th day of the first
9-34 month following the producer's last day of business.
9-35 SECTION 35. Subsection (d), Section 182.087, Tax Code, is
9-36 repealed.
9-37 SECTION 36. (a) Except as provided by Subsection (b) of
9-38 this section, this Act takes effect January 1, 1994.
9-39 (b) Sections 6, 15, 19, 20, 21, 23, 24, and 25 of this Act
9-40 take effect October 1, 1993.
9-41 SECTION 37. This Act applies only to taxes due on or after
9-42 the effective date of this Act. Taxes due before the effective
9-43 date of this Act are governed by the law in effect when the taxes
9-44 became due, and that law is continued in effect for the collection
9-45 of taxes due and for civil and criminal enforcement of the
9-46 liability for those taxes.
9-47 SECTION 38. The importance of this legislation and the
9-48 crowded condition of the calendars in both houses create an
9-49 emergency and an imperative public necessity that the
9-50 constitutional rule requiring bills to be read on three several
9-51 days in each house be suspended, and this rule is hereby suspended.
9-52 * * * * *
9-53 Austin,
9-54 Texas
9-55 April 22, 1993
9-56 Hon. Bob Bullock
9-57 President of the Senate
9-58 Sir:
9-59 We, your Committee on Finance to which was referred S.B. No. 892,
9-60 have had the same under consideration, and I am instructed to
9-61 report it back to the Senate with the recommendation that it do not
9-62 pass, but that the Committee Substitute adopted in lieu thereof do
9-63 pass and be printed.
9-64 Montford,
9-65 Chairman
9-66 * * * * *
9-67 WITNESSES
9-68 FOR AGAINST ON
9-69 ___________________________________________________________________
9-70 Name: John Christian Attn x
10-1 Representing: Tx Comptroller of Pub Accts
10-2 City: Austin
10-3 -------------------------------------------------------------------
10-4 Name: Wade Anderson x
10-5 Representing: Asst Dir Tax Admin Comp.
10-6 City: Austin
10-7 -------------------------------------------------------------------