By: Montford S.B. No. 895
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the administration and application of and exemptions
1-2 from various excise taxes; specifying the types of records and
1-3 documentation required to be prepared, accepted, or maintained by
1-4 taxpayers and submitted to the comptroller; the authority of the
1-5 comptroller and authorized employees to obtain access to and
1-6 examine persons, records and documents; creating offenses; and
1-7 providing penalties.
1-8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-9 SECTION 1. Section 111.104(b), Tax Code, is amended to read
1-10 as follows:
1-11 (b) A tax refund claim may be filed with the comptroller by
1-12 the person who paid the tax directly to the state or by that <the>
1-13 person's attorney, other duly authorized representative <assignee>,
1-14 or <other> successor, and may not be assigned.
1-15 SECTION 2. Subsections (c) and (d), Section 151.302, Tax
1-16 Code, are repealed.
1-17 SECTION 3. Section 151.318(c), Tax Code, is amended to read
1-18 as follows:
1-19 (c) The exemption does not include:
1-20 (1) machinery, equipment, or replacement parts or
1-21 their accessories having a useful life when new in excess of six
1-22 months;
1-23 (2) intraplant transportation equipment, maintenance
2-1 or janitorial supplies or equipment, or other machinery, equipment,
2-2 materials, or supplies that are used incidentally in a
2-3 manufacturing, processing, or fabrication operation;
2-4 (3) hand tools; or
2-5 (4) office equipment or supplies, equipment or
2-6 supplies used in sales or distribution activities, research or
2-7 development of new products, or transportation activities, or other
2-8 tangible personal property not used in an actual manufacturing,
2-9 processing, or fabrication operation<; or>
2-10 <(5) internal or external wrapping, packing, and
2-11 packaging supplies, as defined by Section 151.302(d), purchased for
2-12 a person's own use, stored for use, or used in wrapping, packing,
2-13 or packaging tangible personal property>.
2-14 SECTION 4. Section 151.319(e), Tax Code, is amended to read
2-15 as follows:
2-16 (e) The following items are not exempted by Subsection (d)
2-17 of this section:
2-18 (1) machinery or equipment or their accessories or
2-19 replacement parts having a useful life when new in excess of six
2-20 months;
2-21 (2) intraplant transportation equipment, maintenance
2-22 or janitorial supplies or equipment, or other machinery, equipment,
2-23 materials, or supplies that are used incidentally to printing or
2-24 processing;
2-25 (3) hand tools; or
3-1 (4) office equipment or supplies; equipment or
3-2 supplies used in sales, distribution, or transportation activities,
3-3 or in gathering information; or other tangible personal property
3-4 used by a newspaper printer in an activity other than the actual
3-5 printing and processing operation<; or>
3-6 <(5) internal or external wrapping, packing, and
3-7 packaging supplies, as defined by Section 151.302(d), purchased for
3-8 a person's own use, stored for use, or used in wrapping, packing,
3-9 or packaging tangible personal property>.
3-10 SECTION 5. Section 151.322(b)(3), Tax Code, is repealed.
3-11 SECTION 6. Section 151.328, Tax Code, is amended to read as
3-12 follows:
3-13 Sec. 151.328. Aircraft. (a) Aircraft are exempted from the
3-14 taxes imposed by this chapter if:
3-15 (1) sold to a person using the aircraft as a
3-16 certificated or licensed carrier of persons or property;
3-17 (2) sold to a person and used for the exclusive
3-18 purpose of training or instructing pilots in a licensed course of
3-19 instruction; <or>
3-20 (3) sold to a foreign government <or to persons who
3-21 are not residents of this state.>; or
3-22 (4) sold to persons for use and registration in
3-23 another state or nation, prior to any use in this state other than
3-24 the transportation of the aircraft out of state.
3-25 (b) Repair, remodeling, and maintenance services to aircraft
4-1 operated by a certificated or licensed carrier of persons or
4-2 property or to an engine or other component part of an aircraft
4-3 operated by a certificated or licensed carrier of persons or
4-4 property are exempted from the taxes imposed by this chapter.
4-5 (c) In this section, "aircraft" does not include a rocket or
4-6 missile, but does include:
4-7 (1) a fixed wing, heavier-than-air craft that is
4-8 driven by propeller or jet and supported by the dynamic reaction of
4-9 the air against its wings;
4-10 (2) a helicopter; and
4-11 (3) an airplane flight simulator approved by the
4-12 Federal Aviation Administration for use as a Phase II or higher
4-13 flight simulator under Appendix H, 14 C.F.R. Part 121.
4-14 (d) Machinery, tools, and equipment used or consumed
4-15 exclusively in the repair, remodeling, or maintenance of aircraft
4-16 engines, or aircraft component parts by or on behalf of a
4-17 certificated or licensed carrier of persons or property are
4-18 exempted from the taxes imposed by this chapter.
4-19 (e) Tangible personal property that is permanently affixed
4-20 or attached as a component part of an aircraft owned or operated by
4-21 a certificated or licensed carrier of persons or property is
4-22 exempted from the taxes imposed by this chapter.
4-23 (f) To qualify for the exemption provided under Subsection
4-24 151.328(a)(4), the person purchasing such aircraft in this state
4-25 must sign a special exemption certificate at the time of purchase.
5-1 The exemption certificate shall be designated an exemption
5-2 certificate for purchase of aircraft for out of state registration
5-3 and use and shall:
5-4 (1) be on a form designated by the comptroller and
5-5 shall contain such information as the comptroller may deem
5-6 reasonable;
5-7 (2) have all information required by the comptroller
5-8 on the form provided in full in order to be valid; and
5-9 (3) be signed by the purchaser at the time of the
5-10 purchase and be authorization for the comptroller to furnish a copy
5-11 of the certificate to the state or nation of intended use and
5-12 registration.
5-13 (g) A person commits an offense if:
5-14 (1) the person gives an exemption certificate required
5-15 under this Section to a seller for an aircraft that this person
5-16 knows, at the time of purchase, will be used in a manner other than
5-17 that expressed in the exemption certificate; or
5-18 (2) the person gives an exemption certificate with
5-19 fraudulent intent or intent to wrongfully evade the payment of the
5-20 tax imposed under this chapter.
5-21 (3) An offense under this Section is a felony of the
5-22 third degree.
5-23 SECTION 7. Subchapter H, Chapter 151, Tax Code, is amended
5-24 by adding Section 151.351, to read as follows:
5-25 Sec. 151.351. Packaging Supplies and Wrapping
6-1 (a) Internal and external wrapping, packing, and packaging
6-2 supplies are exempted from the taxes imposed by this chapter if
6-3 sold to a person for use, stored for future use, or used in
6-4 wrapping, packing, or packaging tangible personal property for the
6-5 purpose of furthering the sale of the property wrapped, packed, or
6-6 packaged or for the purpose of furthering the distribution of a
6-7 newspaper whether or not the newspaper is distributed without
6-8 charge.
6-9 (b) In this section, "wrapping," "packing," and "packaging
6-10 supplies and material" include:
6-11 (1) wrapping paper, wrapping twine, bags, cartons,
6-12 crates, crating material, tape, rope, rubber bands, labels,
6-13 staples, glue, and mailing tubes; and
6-14 (2) excelsior, straw, cardboard fillers, separators,
6-15 shredded paper, ice, dry ice, cotton batting, shirt boards, hay,
6-16 laths, and other property used inside a package in order to shape,
6-17 form, stabilize, preserve, or protect the contents.
6-18 SECTION 8. Subchapter A, Chapter 152, Tax Code, is amended
6-19 by adding Section 152.004, to read as follows:
6-20 Sec. 152.004. Records. (a) Definitions. The following
6-21 words and terms, when used in this section, shall have the
6-22 following meanings, unless - the context clearly indicates
6-23 otherwise.
6-24 (1) Cash sale means a transfer of ownership of a motor
6-25 vehicle where the full amount of the consideration is given the
7-1 seller in money, check, other negotiable instrument, or other
7-2 property at the time of purchase and title is not encumbered by a
7-3 seller's or third party's lien.
7-4 (2) Consignment/agent sale means a sale where the
7-5 owner of a motor vehicle is represented by an agent, broker, or
7-6 factor to transact the sale of the motor vehicle.
7-7 (3) Seller means a person who for himself or another
7-8 sells, rents, or transfers ownership of a motor vehicle for
7-9 consideration.
7-10 (4) Seller financed sale means a credit sale or
7-11 transfer of a motor vehicle other than a rental, lease, or cash
7-12 sale, for consideration, when title is retained or encumbered by
7-13 the seller as security for payment of the purchase price. Seller
7-14 financed sale includes a sale where financing is provided by an
7-15 entity related to the seller. An entity is related if the lender's
7-16 primary activity is to provide financing for the purchase of
7-17 tangible personal property, including motor vehicles, that are
7-18 purchased from the related seller.
7-19 (5) Third party financed sale means a transfer of a
7-20 motor vehicle where the consideration is provided the buyer by a
7-21 lender and the title is retained or encumbered by the lender not
7-22 related to the seller.
7-23 (6) Title means the certificate of title document as
7-24 provided for under the Certificate of Title Act, Article 6687-1.
7-25 (b) Except as otherwise provided in this chapter, every
8-1 seller must maintain business records at the seller's principal
8-2 place of business as defined and required by this section in such a
8-3 form as may readily be examined by the comptroller or a comptroller
8-4 representative. Sellers must retain these records for a minimum
8-5 period of four years from the date of purchase and four years from
8-6 the date of sale of the motor vehicle.
8-7 (c) A seller's business records must reflect the total
8-8 receipts from all business income and expense including, but not
8-9 limited to, transactions involving motor vehicles. Business
8-10 records must include any documents required by other state
8-11 agencies, the federal government, or a political subdivision.
8-12 (d) The records kept must include, but are not limited to,
8-13 the items specified in this subsection.
8-14 (1) For all sales transactions:
8-15 (A) a photocopy of the completed application for
8-16 title/registration/motor vehicle tax affidavit;
8-17 (B) a photocopy of the assigned title or
8-18 manufacturer's certificate of origin, front and back;
8-19 (C) a photocopy of the completed odometer
8-20 statement (if separate from title);
8-21 (D) the sales contract, dated and signed,
8-22 itemizing all charges; and
8-23 (E) photocopy of the assigned title or
8-24 manufacturer's certificate of origin, front and back, to any
8-25 trade-in motor vehicle described in the sales contract;
9-1 (2) For cash sales: In addition to business records
9-2 required in paragraph (1) of this subsection, when the seller did
9-3 not handle the transfer of the certificate of title or tax payment,
9-4 the seller's records must include a statement by the purchaser,
9-5 that is signed and dated, and indicating the date each of the
9-6 documents necessary to apply for the title, register the vehicle
9-7 and pay the motor vehicle sales tax, were provided to the purchaser
9-8 by the seller. The document should also include a statement that
9-9 the seller advised the purchaser that the purchaser must pay tax to
9-10 the county tax assessor collector;
9-11 (3) For seller-financed sales: In addition to records
9-12 required in paragraph (1) of this subsection, seller's business
9-13 records must include:
9-14 (A) a photocopy of the receipt for title
9-15 application/registration/motor vehicle sales tax (Form 31
9-16 lienholder copy) were the dealer transferred the certificate of
9-17 title. If the seller did not handle the transfer of the
9-18 certificate of title, the seller must retain a statement by the
9-19 purchaser, that is signed and dated, and indicating the date that
9-20 each of the documents necessary to apply for the certificate of
9-21 title, register the vehicle and pay the motor vehicle sales tax,
9-22 were provided to the purchaser by the seller. The document should
9-23 also include a statement that the seller advised the purchaser that
9-24 the purchaser must pay tax to the county tax assessor-collector;
9-25 and
10-1 (B) documentation of purchaser's payment(s);
10-2 (4) For third-party financed transactions: In
10-3 addition to records required in paragraph (1) of this subsection,
10-4 seller's business records must include:
10-5 (A) a copy of the draft or check from the third
10-6 party lender; and
10-7 (B) documentation that the payment from the
10-8 third party lender is for payment of the specific transaction; and
10-9 (5) For consignment/agent sales. In addition to any
10-10 other records required by this subsection, seller's business
10-11 records must include a copy of a written consignment agreement,
10-12 signed and dated by the consignor. The motor vehicle must be
10-13 identified by the vehicle identification number in the document.
10-14 (e) All written sales contracts and sales invoices must be
10-15 retained as originals or photocopies by the seller, and must
10-16 include:
10-17 (1) the name and address of the seller;
10-18 (2) the name and address of the purchaser;
10-19 (3) the date of sale;
10-20 (4) the sales price and installment payment amounts,
10-21 if applicable;
10-22 (5) description of vehicle sold including the vehicle
10-23 identification number;
10-24 (6) description and value of any vehicle traded-in to
10-25 the seller including the vehicle identification number;
11-1 (7) interest charges, if any, separately stated;
11-2 (8) documentary fee, if any, separately stated; and
11-3 (9) insurance charges, if any, separately stated.
11-4 SECTION 9. Section 152.044, Tax Code, is amended to read as
11-5 follows:
11-6 Sec. 152.044. Payment by Seller. If the Comptroller on an
11-7 audit of the records of a seller finds that the amount of tax due
11-8 was incorrectly reported on a joint statement <affidavit> and that
11-9 the amount of the tax paid was less than the amount due or that the
11-10 seller failed to execute and deliver to the purchaser a joint
11-11 statement <affidavit> and any other documents necessary to register
11-12 the vehicle, the seller and purchaser are jointly and severally
11-13 <is> liable for the amount of the tax determined to be due.
11-14 SECTION 10. Section 152.062, Tax Code, is amended to read as
11-15 follows:
11-16 Sec. 152.062. REQUIRED STATEMENTS <AFFIDAVITS>. (a) The
11-17 persons obligated by this chapter to pay taxes on the transaction
11-18 shall file a joint statement <affidavit> with the tax
11-19 assessor-collector of the county in which the application for
11-20 registration and for a Texas certificate of title is made.
11-21 (b) The statement <affidavit> must be in the following form:
11-22 (1) if a motor vehicle is sold, the seller and
11-23 purchaser shall make a joint statement of <affidavit stating> the
11-24 then value in dollars of the total consideration for the vehicle;
11-25 or
12-1 (2) if the ownership of a motor vehicle is transferred
12-2 as the result of a gift or even exchange, the principal parties
12-3 shall make a joint statement describing <affidavit stating> the
12-4 nature of the transaction.
12-5 (c) If a party to a sale, even exchange, or gift is a
12-6 corporation, the president, vice-president, secretary, manager, or
12-7 other authorized officer of the corporation shall make the
12-8 statement <affidavit> for the corporation.
12-9 (d) The tax assessor-collector shall keep a copy of each
12-10 statement <affidavit> until it is called for by the comptroller for
12-11 auditing.
12-12 SECTION 11. Section 152.063, Tax Code, is amended to read as
12-13 follows:
12-14 Sec. 152.063. Records. (a) The seller of a motor vehicle
12-15 shall keep at his principal office for at least four years from the
12-16 date of sale a complete record of each retail sale of a motor
12-17 vehicle. The record must include a copy of the invoice for each
12-18 vehicle sold, a copy of the tax receipt filed with the tax-assessor
12-19 collector as proof that the tax collected was remitted, and a
12-20 monthly report listing the number of vehicles sold and traded in,
12-21 including the vehicle identification numbers, joint affidavit
12-22 numbers, and tax receipt numbers for such vehicles. The invoice
12-23 copy must show the full price of the motor vehicle and the itemized
12-24 price of all its accessories. All sales and supporting records of
12-25 a seller are open to inspection and audit by the comptroller.
13-1 SECTION 12. Section 152.092, Tax Code, is amended to read as
13-2 follows:
13-3 (a) The taxes imposed by this chapter do not apply to the
13-4 retail sale of a motor vehicle that is transported out of state,
13-5 prior to any use in this state other than the transportation of the
13-6 vehicle out of state, for use exclusively outside the state.
13-7 (b) The purchaser of a motor vehicle must sign an exemption
13-8 certificate at the time of the purchase to qualify for this
13-9 exemption. The exemption certificate shall be on a form designated
13-10 by the comptroller and shall contain such information as the
13-11 comptroller may deem reasonable. To be valid, all information
13-12 required by the comptroller on the form must be provided in full.
13-13 (c) The exemption certificate must be signed by the
13-14 purchaser. The signature of the purchaser on the exemption
13-15 certificate authorizes the comptroller to furnish a copy of the
13-16 certificate to the state of intended use and registration.
13-17 (d) The penalties for signing a false affidavit under
13-18 Section 152.101 of this chapter shall also be applicable to the
13-19 offense of signing a false exemption certificate under this
13-20 section.
13-21 SECTION 13. Subsection (a), Section 152.101, Tax Code, is
13-22 amended to read as follows:
13-23 Sec. 152.101. PENALTY FOR SIGNING FALSE STATEMENTS
13-24 <AFFIDAVITS>. (a) A person commits an offense if the person signs
13-25 a joint statement <affidavit> required by Section 152.062 of this
14-1 code and knows that it is false in any material fact.
14-2 SECTION 14. Subchapter A, Chapter 160, Tax Code, is amended
14-3 by adding Section 160.004, to read as follows:
14-4 Sec. 160.004. Records. (a) Definitions. The following
14-5 words and terms, when used in this section, shall have the
14-6 following meanings, unless - the context clearly indicates
14-7 otherwise.
14-8 (1) Cash sale means a transfer of ownership of a
14-9 taxable boat or motor where the full amount of the consideration is
14-10 given the seller in money, check, other negotiable instrument, or
14-11 other property at the time of purchase and title is not encumbered
14-12 by a seller's or third party's lien.
14-13 (2) Consignment/agent sale means a sale where the
14-14 owner of a taxable boat or motor is represented by an agent,
14-15 broker, or factor to transact the sale of the taxable boat or
14-16 motor.
14-17 (3) Seller means a person who for himself or another
14-18 sells, rents, or transfers ownership of a taxable boat or motor for
14-19 consideration.
14-20 (4) Seller financed sale means a credit sale or
14-21 transfer of a taxable boat or motor other than a rental, lease, or
14-22 cash sale, for consideration, when title is retained or encumbered
14-23 by the seller as security for payment of the purchase price.
14-24 Seller financed sale includes a sale where financing is provided by
14-25 an entity related to the seller. An entity is related if the
15-1 lender's primary activity is to provide financing for the purchase
15-2 of tangible personal property, including taxable boats or motors,
15-3 that are purchased from the related seller.
15-4 (5) Third party financed sale means a transfer of a
15-5 taxable boat or motor where the consideration is provided the buyer
15-6 by a lender and the title is retained or encumbered by the lender
15-7 not related to the seller.
15-8 (6) Title means the certificate of title document as
15-9 provided for under the Chapter 31, Parks and Wildlife Code.
15-10 (b) Except as otherwise provided in this chapter, every
15-11 seller must maintain business records at the seller's principal
15-12 place of business as defined and required by this section in such a
15-13 form as may readily be examined by the comptroller or a comptroller
15-14 representative. Sellers must retain these records for a minimum
15-15 period of four years from the date of purchase and four years from
15-16 the date of sale of the taxable boat or motor.
15-17 (c) A seller's business records must reflect the total
15-18 receipts from all business income and expense including, but not
15-19 limited to, transactions involving taxable boats or motors.
15-20 Business records must include any documents required by other state
15-21 agencies, the federal government, or a political subdivision.
15-22 (d) The records kept must include, but are not limited to,
15-23 the items specified in this subsection.
15-24 (1) For all sales transactions:
15-25 (A) a photocopy of the completed application for
16-1 title/registration/tax affidavit;
16-2 (B) a photocopy of the assigned title or
16-3 manufacturer's certificate of origin, front and back;
16-4 (C) the sales contract, dated and signed,
16-5 itemizing all charges; and
16-6 (D) photocopy of the assigned title or
16-7 manufacturer's certificate of origin, front and back, to any
16-8 trade-in boat or motor described in the sales contract;
16-9 (2) For cash sales: In addition to business records
16-10 required in paragraph (1) of this subsection, when the seller did
16-11 not handle the transfer of the certificate of title or tax payment,
16-12 the seller's records must include a statement by the purchaser,
16-13 that is signed and dated, and indicating the date each of the
16-14 documents necessary to apply for the title, register the vehicle
16-15 and pay the boat or motor sales tax, were provided to the purchaser
16-16 by the seller. The document should also include a statement that
16-17 the seller advised the purchaser that the purchaser must pay tax to
16-18 the county tax assessor collector or the department;
16-19 (3) For seller-financed sales: In addition to records
16-20 required in paragraph (1) of this subsection, seller's business
16-21 records must include:
16-22 (A) a photocopy of the receipt for title
16-23 application/registration/sales tax where the dealer transferred the
16-24 certificate of title. If the seller did not handle the transfer of
16-25 the certificate of title, the seller must retain a statement by the
17-1 purchaser, that is signed and dated, and indicating the date that
17-2 each of the documents necessary to apply for the certificate of
17-3 title, register the vehicle and pay the tax, were provided to the
17-4 purchaser by the seller. The document should also include a
17-5 statement that the seller advised the purchaser that the purchaser
17-6 must pay tax to the county tax assessor-collector or the
17-7 department; and
17-8 (B) documentation of purchaser's payment(s);
17-9 (4) For third-party financed transactions: In
17-10 addition to records required in paragraph (1) of this subsection,
17-11 seller's business records must include:
17-12 (A) a copy of the draft or check from the third
17-13 party lender; and
17-14 (B) documentation that the payment from the
17-15 third party lender is for payment of the specific transaction; and
17-16 (5) For consignment/agent sales. In addition to any
17-17 other records required by this subsection, seller's business
17-18 records must include a copy of a written consignment agreement,
17-19 signed and dated by the consignor. The taxable boat or motor must
17-20 be identified by its identification number in the document.
17-21 (e) All written sales contracts and sales invoices must be
17-22 retained as originals or photocopies by the seller, and must
17-23 include:
17-24 (1) the name and address of the seller;
17-25 (2) the name and address of the purchaser;
18-1 (3) the date of sale;
18-2 (4) the sales price and installment payment amounts,
18-3 if applicable;
18-4 (5) description of taxable boat or motor sold
18-5 including its identification number;
18-6 (6) description and value of any boat or motor
18-7 traded-in to the seller including its identification number;
18-8 (7) interest charges, if any, separately stated;
18-9 (8) documentary fee, if any, separately stated; and
18-10 (9) insurance charges, if any, separately stated.
18-11 SECTION 15. Section 160.042, Tax Code, is amended to read as
18-12 follows:
18-13 Sec. 160.042. REQUIRED STATEMENTS <AFFIDAVITS>. (a) A
18-14 person obligated to pay a tax imposed by this chapter on a
18-15 transaction shall file the statement <affidavit> as provided by
18-16 this section with the department or tax assessor-collector on
18-17 payment of a tax imposed by this chapter.
18-18 (b) If a taxable boat or motor is sold by a person at a
18-19 retail sale, the seller and purchaser shall make a statement of
18-20 <affidavit stating> the value in dollars of the total consideration
18-21 of the boat or motor at the time of sale.
18-22 (c) If the ownership of a taxable boat or motor is
18-23 transferred as a result of a gift, the donor shall make a joint
18-24 statement describing <affidavit stating> the nature of the
18-25 transaction.
19-1 (d) If the ownership of a taxable boat or motor is
19-2 transferred as the result of an even exchange, the parties shall
19-3 make a joint statement describing <affidavit stating> the nature of
19-4 the transaction.
19-5 (e) The department or the tax collector-assessor shall
19-6 examine each statement <affidavit> for the purpose of determining
19-7 the truth and accuracy of the information it contains. If the
19-8 department, the tax collector-assessor, or the comptroller has
19-9 reason to question the truth of the information in a <an> statement
19-10 <affidavit>, or if any material fact fails to meet the rules
19-11 adopted by the comptroller, the department, or the tax
19-12 assessor-collector, or the comptroller may require any party to the
19-13 statement <affidavit> to furnish substantiation of information in
19-14 the statement <affidavit> before accepting an application for a
19-15 Texas certificate of number or certificate of title.
19-16 (f) The department and the tax assessor-collector shall keep
19-17 a copy of each statement <affidavit> and any substantiating
19-18 materials until it is called for by the comptroller for auditing.
19-19 SECTION 16. Section 160.043, Tax Code, is amended to read as
19-20 follows:
19-21 Sec. 160.043. Payment by Seller. If the comptroller on an
19-22 audit of the records of a seller finds that the amount of the tax
19-23 due was incorrectly reported on a joint statement <affidavit> and
19-24 that the amount of the tax paid was less than the amount due or
19-25 that the seller failed to execute and deliver to the purchaser a
20-1 joint statement <affidavit> and any other documents necessary to
20-2 register the taxable boat or motor, the seller and purchaser are
20-3 jointly and severally liable for the amount of the tax determined
20-4 to be due.
20-5 SECTION 17. Section 160.046, Tax Code, is amended to read as
20-6 follows:
20-7 Sec. 160.046. Records.
20-8 (a) The seller of a taxable boat or motor shall keep at his
20-9 principal office for at least four years from the date of the sale
20-10 a complete record of each sale of a taxable boat or motor.
20-11 (b) The record must include:
20-12 (1) a copy of the invoice of each boat or motor <item>
20-13 sold. The invoice copy must show the full price of the taxable
20-14 boat or motor and the itemized price of all its accessories;
20-15 (2) a copy of all written sales contracts, which
20-16 should include the sales price and all installment payment amounts,
20-17 if applicable;
20-18 (3) the name and address of the seller;
20-19 (4) the name and address of the purchaser;
20-20 (5) a description of the boat or motor sold including
20-21 the boat or motor identification number;
20-22 (6) a description and value of any boat or motor
20-23 traded-in to the seller including the boat or motor identification
20-24 number;
20-25 (7) interest charges, if any, separately stated; and
21-1 (8) a copy of any written consignment agreement,
21-2 signed and dated by the consignor, including the boat or motor
21-3 identification number.
21-4 (c) All sales and supporting records of a seller are open to
21-5 inspection and audit by the comptroller.
21-6 SECTION 18. Chapter 160, Tax Code, is amended by adding
21-7 Section 160.062 to read as follows:
21-8 Sec. 160.062. PENALTY FOR SIGNING FALSE STATEMENTS. (a) A
21-9 person commits an offense if the person signs a joint statement
21-10 required by Section 160.042 of this code and knows that it is false
21-11 in any material fact.
21-12 (b) An offense under this section is a third-degree felony
21-13 punishable by the standards set forth in Section 12.34, Penal Code.
21-14 SECTION 19. Subchapter B, Chapter 403, Government Code, is
21-15 amended by adding Section 403.0111 to read as follows:
21-16 Sec. 403.0111. SUBPOENA POWER. The comptroller may issue a
21-17 subpoena if the comptroller determines that the subpoena is
21-18 necessary for the proper discharge of the duties imposed by law on
21-19 the comptroller. The comptroller may subpoena a person to appear
21-20 at a place and time stipulated in the subpoena for the taking of
21-21 the person's deposition, and the subpoena may require the person to
21-22 produce at the time of the deposition books, documents, records,
21-23 papers, accounts, and all other objects that may be necessary to
21-24 make a full determination of the facts essential to the completion
21-25 of an investigation by the comptroller.
22-1 SECTION 20. This Act take effect September 1, 1993.
22-2 SECTION 21. The importance of this legislation and the
22-3 crowded condition of the calendars in both houses create an
22-4 emergency and an imperative public necessity that the
22-5 constitutional rule requiring bills to be read on three several
22-6 days in each house be suspended, and this rule is hereby suspended.