H.B. No. 2624
    1-1                                AN ACT
    1-2  relating to the appraisal and ad valorem taxation of certain types
    1-3  of personal property; providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 23.12(f), Tax Code, is amended to read as
    1-6  follows:
    1-7        (f)  The owner of an inventory other than a dealer's motor
    1-8  vehicle <an applicable> inventory as that term is defined in
    1-9  Section 23.121 <23.12A> of this code may elect to have the
   1-10  inventory appraised at its market value as of September 1 of the
   1-11  year preceding the tax year to which the appraisal applies by
   1-12  filing an application with the chief appraiser requesting that the
   1-13  inventory be appraised as of September 1.  The application must
   1-14  clearly describe the inventory to which it applies and be signed by
   1-15  the owner of the inventory.  The application applies to the
   1-16  appraisal of the inventory in each tax year that begins after the
   1-17  next August 1 following the date the application is filed with the
   1-18  chief appraiser unless the owner of the inventory by written notice
   1-19  filed with the chief appraiser revokes the application or the
   1-20  ownership of the inventory changes.  A notice revoking the
   1-21  application is effective for each tax year that begins after the
   1-22  next September 1 following the date the notice of revocation is
   1-23  filed with the chief appraiser.
    2-1        SECTION 2.  Section 23.12A, Tax Code, is amended to read as
    2-2  follows:
    2-3        Sec. 23.121 <23.12A>.  DEALER'S MOTOR VEHICLE <Special>
    2-4  Inventory; Value.  (a)  In this section:
    2-5              (1)  "Chief appraiser" means the chief appraiser for
    2-6  the appraisal district in which a dealer's motor vehicle inventory
    2-7  is located.  <"Applicable inventory" means an inventory that is
    2-8  held for resale and that consists of individual units of personal
    2-9  property, each unit of which must, as a matter of law, be titled in
   2-10  the name of the retail purchaser and be registered with the Texas
   2-11  Department of Transportation through the office of the county tax
   2-12  assessor-collector.>
   2-13              (2)  "Collector" means the county tax
   2-14  assessor-collector in the county in which a dealer's motor vehicle
   2-15  inventory is located.
   2-16              (3)  "Dealer" means a person who holds a dealer's
   2-17  general distinguishing number issued by the Texas Department of
   2-18  Transportation under the authority of Article 6686, Revised
   2-19  Statutes, or is authorized by law or interstate reciprocity
   2-20  agreement to purchase vehicles in Texas without paying the motor
   2-21  vehicle sales tax.  The term does not include:
   2-22                    (A)  a person who holds a manufacturer's license
   2-23  issued by the Motor Vehicle Board of the Texas Department of
   2-24  Transportation;
   2-25                    (B)  an entity that is owned or controlled by a
    3-1  person who holds a manufacturer's license issued by the Motor
    3-2  Vehicle Board of the Texas Department of Transportation; or
    3-3                    (C)  a dealer whose general distinguishing number
    3-4  issued by the Texas Department of Transportation under the
    3-5  authority of Article 6686, Revised Statutes, prohibits the dealer
    3-6  from selling a vehicle to any person except a dealer.
    3-7              (4)  "Dealer's motor vehicle inventory" means all motor
    3-8  vehicles held for sale by a dealer.
    3-9              (5)  "Dealer-financed sale" means the sale of a motor
   3-10  vehicle in which the seller finances the purchase of the vehicle,
   3-11  is the sole lender in the transaction, and retains exclusively the
   3-12  right to enforce the terms of the agreement evidencing the sale.
   3-13              (6)  "Declaration" means the dealer's motor vehicle
   3-14  inventory declaration form promulgated by the comptroller as
   3-15  required by this section.
   3-16              (7)  "Fleet transaction" means the sale of five or more
   3-17  motor vehicles from a dealer's motor vehicle inventory to the same
   3-18  business entity within one calendar year.
   3-19              (8)  "Motor vehicle" means a towable recreational
   3-20  vehicle or a fully self-propelled vehicle with at least two wheels
   3-21  which has as its primary purpose the transport of a person or
   3-22  persons, or property, whether or not intended for use on a public
   3-23  street, road, or highway.  The term does not include a vehicle with
   3-24  respect to which the certificate of title has been surrendered in
   3-25  exchange for a salvage certificate in the manner provided by law.
    4-1              (9) <(3)  "Excluded inventory" means that part of an
    4-2  applicable inventory that:>
    4-3                    <(A)  is included in a transaction consisting of
    4-4  five or more units sold to a single business entity that has a
    4-5  manufacturer's or distributor's fleet identification number
    4-6  authorizing the entity to make fleet purchases;>
    4-7                    <(B)  is included in a transaction between
    4-8  dealers; or>
    4-9                    <(C)  consists of vehicles classified as medium
   4-10  or heavy duty trucks of 16,000 pounds gross vehicular weight or
   4-11  more.>
   4-12              <(4)>  "Owner" means a dealer who owes current year
   4-13  vehicle inventory taxes <the person responsible for the payment of
   4-14  property taxes> levied against a dealer's motor vehicle <special>
   4-15  inventory.
   4-16              (10)  "Person" means a natural person, corporation,
   4-17  partnership, or other legal entity.
   4-18              (11) <(5)>  "Sales price" means the total amount of
   4-19  money paid or to be paid for the purchase of a motor vehicle as set
   4-20  forth as "sales price" in the form entitled "Application for Texas
   4-21  Certificate of Title" promulgated by the Texas Department of
   4-22  Transportation.  In a transaction that does not involve the use of
   4-23  that form, the term means an amount of money that is equivalent, or
   4-24  substantially equivalent, to the amount that would appear as "sales
   4-25  price" on the Application for Texas Certificate of Title if that
    5-1  form were involved.
    5-2              (12)  "Subsequent sale" means a dealer-financed sale of
    5-3  a motor vehicle that, at the time of the sale, has been the subject
    5-4  of a dealer-financed sale from the same dealer's motor vehicle
    5-5  inventory in the same calendar year.
    5-6              (13) <(6)  "Special inventory" means that part of an
    5-7  applicable inventory that remains after subtracting units included
    5-8  in excluded inventory.>
    5-9              <(7)>  "Total annual sales" means the total of the
   5-10  sales price from every sale <of units> from a dealer's motor
   5-11  vehicle <special> inventory for a 12-month period <or for that
   5-12  portion of a 12-month period for which the owner of a special
   5-13  inventory is responsible for the payment of property taxes levied
   5-14  against the special inventory>.
   5-15              (14)  "Towable recreational vehicle" means a
   5-16  nonmotorized vehicle that is designed for temporary human
   5-17  habitation for recreational, camping, or seasonal use and:
   5-18                    (A)  is titled and registered with the Texas
   5-19  Department of Transportation through the county tax
   5-20  assessor-collector;
   5-21                    (B)  is permanently built on a single chassis;
   5-22                    (C)  contains one or more life support systems;
   5-23  and
   5-24                    (D)  is designed to be towable by a motor
   5-25  vehicle.
    6-1        (b)  For <Except as provided by Subsection (c) of this
    6-2  section, for> the purpose of the computation of property tax, the
    6-3  market value of a dealer's motor vehicle <special> inventory on
    6-4  January 1 is the total annual sales from the dealer's motor vehicle
    6-5  <special> inventory, less sales to dealers, fleet transactions, and
    6-6  subsequent sales, for the 12-month period corresponding to the
    6-7  prior tax year, divided by 12.
    6-8        (c)  For the purpose of the computation of property tax, the
    6-9  market value of the dealer's motor vehicle <a special> inventory of
   6-10  an owner who was not a dealer on January 1 of <with respect to
   6-11  which sales were not made for the entire 12-month period
   6-12  corresponding to> the prior tax year, the chief appraiser shall
   6-13  <may> estimate the market value of the dealer's motor vehicle
   6-14  <special> inventory.  In making the estimate required <allowed> by
   6-15  this subsection the chief appraiser shall extrapolate using sales
   6-16  data, if any, generated by sales from the dealer's motor vehicle
   6-17  <special> inventory in the prior tax year.
   6-18        (d)  Except for dealer's motor vehicle inventory, personal
   6-19  property held by a dealer <Excluded inventory described in
   6-20  Subsection (a)(3)(C) of this section> is appraised as provided by
   6-21  other sections <Section 23.12(a)> of this code.  In the case of a
   6-22  dealer whose sales from dealer's motor vehicle inventory are made
   6-23  predominately to dealers, the chief appraiser shall appraise the
   6-24  dealer's motor vehicle inventory as provided by Section 23.12 of
   6-25  this code.
    7-1        (e)  A dealer is presumed to be an owner of a dealer's motor
    7-2  vehicle inventory on January 1 if, in the 12-month period ending on
    7-3  December 31 of the immediately preceding year, the dealer sold a
    7-4  motor vehicle to a person other than a dealer.  The presumption
    7-5  created by this subsection is not rebutted by the fact that a
    7-6  dealer has no motor vehicles physically on hand for sale from
    7-7  dealer's motor vehicle inventory on January 1.
    7-8        (f)  The comptroller shall promulgate a form entitled
    7-9  Dealer's Motor Vehicle Inventory Declaration.  Except as provided
   7-10  by Section 23.122(l) of this code, not later than February 1 of
   7-11  each year, or, in the case of a dealer who was not in business on
   7-12  January 1, not later than 30 days after commencement of business,
   7-13  each dealer shall file a declaration with the chief appraiser and
   7-14  file a copy with the collector.  The declaration is sufficient to
   7-15  comply with this subsection if it sets forth the following
   7-16  information:
   7-17              (1)  the name and business address of each location at
   7-18  which the dealer owner conducts business;
   7-19              (2)  each of the dealer's general distinguishing
   7-20  numbers issued by the Texas Department of Transportation;
   7-21              (3)  a statement that the dealer owner is the owner of
   7-22  a dealer's motor vehicle inventory; and
   7-23              (4)  the market value of the dealer's motor vehicle
   7-24  inventory for the current tax year as computed under Section
   7-25  23.121(b) of this code.
    8-1        (g)  Under the terms provided by this subsection, the chief
    8-2  appraiser may examine the books and records of the holder of a
    8-3  general distinguishing number issued by the Texas Department of
    8-4  Transportation.  A request made under this subsection must be made
    8-5  in writing, delivered personally to the custodian of the records,
    8-6  at the location for which the general distinguishing number has
    8-7  been issued, must provide a period not less than 15 days for the
    8-8  person to respond to the request, and must state that the person to
    8-9  whom it is addressed has the right to seek judicial relief from
   8-10  compliance with the request.  In a request made under this section
   8-11  the chief appraiser may examine:
   8-12              (1)  the document issued by the Texas Department of
   8-13  Transportation showing the person's general distinguishing number;
   8-14              (2)  documentation appropriate to allow the chief
   8-15  appraiser to ascertain the applicability of this section and
   8-16  Section 23.122 of this code to the person;
   8-17              (3)  sales records to substantiate information set
   8-18  forth in the dealer's declaration filed by the person.
   8-19        (h)  If a dealer fails to file a declaration as required by
   8-20  this section, or if, on the declaration required by this section, a
   8-21  dealer reports the sale of fewer than five motor vehicles in the
   8-22  prior year, the chief appraiser shall report that fact to the Texas
   8-23  Department of Transportation.
   8-24        (i)  A dealer who fails to file a declaration required by
   8-25  this section commits an offense.  An offense under this subsection
    9-1  is a misdemeanor punishable by a fine not to exceed $500.  Each day
    9-2  during which a dealer fails to comply with the terms of this
    9-3  subsection is a separate violation.
    9-4        (j)  A dealer who violates Subsection (g) of this section
    9-5  commits an offense.  An offense under this subsection is a
    9-6  misdemeanor punishable by a fine not to exceed $500.  Each day
    9-7  during which a person fails to comply with the terms of Subsection
    9-8  (g) of this section is a separate violation.
    9-9        (k)  In addition to other penalties provided by law, a dealer
   9-10  who fails to file a declaration required by this section shall
   9-11  forfeit a penalty.  A tax lien attaches to the dealer's business
   9-12  personal property to secure payment of the penalty.  The
   9-13  appropriate district attorney, criminal district attorney, or
   9-14  county attorney shall collect the penalty established by this
   9-15  section in the name of the chief appraiser or collector.  Venue of
   9-16  an action brought under this subsection is in the county in which
   9-17  the violation occurred or in the county in which the owner
   9-18  maintains his principal place of business or residence.  A penalty
   9-19  forfeited under this subsection is $1,000 for each month or part of
   9-20  a month in which a declaration is not filed after it is due.
   9-21        SECTION 3.  Section 23.12B, Tax Code, is amended to read as
   9-22  follows:
   9-23        Sec. 23.122 <23.12B>.  Prepayment of Taxes by Certain
   9-24  Taxpayers.  (a)  In this section:
   9-25              (1)  "Aggregate tax rate" means the combined tax rates
   10-1  of all relevant taxing units authorized by law to levy property
   10-2  taxes against a dealer's motor vehicle inventory.
   10-3              (2)  "Chief appraiser" has the meaning given it in
   10-4  Section 23.121 of this code <means the chief appraiser for the
   10-5  appraisal district in which is located an applicable inventory>.
   10-6              (3) <(2)>  "Collector" has the meaning given it in
   10-7  Section 23.121 of this code <means the county tax
   10-8  assessor-collector in the county in which is located a special
   10-9  inventory>.
  10-10              (4)  "Dealer's motor vehicle inventory" has the meaning
  10-11  given it in Section 23.121 of this code.
  10-12              (5)  "Declaration" has the meaning given it in Section
  10-13  23.121 of this code.
  10-14              (6) <(3)  "County aggregate tax rate" means the
  10-15  combined tax rate of all relevant taxing units in a county.>
  10-16              <(4)>  "Owner" has the meaning given it in Section
  10-17  23.121 <23.12A> of this code.
  10-18              (7) <(5)>  "Relevant taxing unit" means a taxing unit,
  10-19  including the county, authorized by law to levy property taxes
  10-20  against a dealer's motor vehicle <special> inventory.
  10-21              (8) <(6)>  "Sales price" has the meaning given it in
  10-22  Section 23.121 <23.12A> of this code.
  10-23              (9)  "Statement" <(7)  "Special inventory" has the
  10-24  meaning given it in Section 23.12A of this code.>
  10-25              <(8)  "Special inventory tax statement"> means the
   11-1  Dealer's Motor Vehicle Inventory Tax Statement filed on a form
   11-2  promulgated by the comptroller <of public accounts> as required by
   11-3  this section.
   11-4              (10)  "Subsequent sale" has the meaning given it in
   11-5  Section 23.121 of this code.
   11-6              (11) <(9)>  "Total annual sales" has the meaning given
   11-7  it in Section 23.121 <23.12A> of this code.
   11-8              (12) <(10)>  "Unit property tax <value> factor" means a
   11-9  number equal to <is> one-twelfth of the prior year <most recent
  11-10  county> aggregate tax rate at the location where a dealer's motor
  11-11  vehicle <for the county in which a special> inventory is located on
  11-12  January 1 of the current year.
  11-13        (b)  Except for a vehicle sold to a dealer, a vehicle
  11-14  included in a fleet transaction, or a vehicle that is the subject
  11-15  of a subsequent sale, an owner or a person who has agreed by
  11-16  contract to pay the owner's current year property taxes levied
  11-17  against the owner's motor vehicle inventory <An owner> shall assign
  11-18  a unit property tax <value> to each motor vehicle <unit> sold from
  11-19  a dealer's motor vehicle <special> inventory.  The unit property
  11-20  tax <value> of each motor vehicle <unit> is determined by
  11-21  multiplying the sales price of the motor vehicle <unit> by the unit
  11-22  property tax <value> factor.  On or before the 10th day of each
  11-23  month the owner shall, together with the statement filed by the
  11-24  owner as provided by this section, deposit with the collector a sum
  11-25  equal to the total of unit property tax <value> assigned to all
   12-1  motor vehicles <units> sold from the dealer's motor vehicle
   12-2  <special> inventory in the prior month to which a unit property tax
   12-3  was assigned.  The money shall be deposited by the collector in or
   12-4  otherwise credited by the collector to the owner's escrow account
   12-5  for prepayment of property taxes as provided by this section.  An
   12-6  escrow account required by this section is used to pay property
   12-7  taxes levied against the dealer's motor vehicle <special>
   12-8  inventory, and the owner shall fund the escrow account as provided
   12-9  by this subsection.
  12-10        (c)  The collector shall maintain the escrow account for each
  12-11  owner in the county depository.  The collector is not required to
  12-12  maintain a separate account in the depository for each escrow
  12-13  account created as provided by this section but shall maintain
  12-14  separate records for each owner.  The collector shall retain any
  12-15  interest generated by the escrow account to defray the cost of
  12-16  administration of the prepayment procedure established by this
  12-17  section.  Interest generated by an escrow account created as
  12-18  provided by this section is the sole property of the collector, and
  12-19  that interest may be used by no entity other than the collector.
  12-20  Interest generated by an escrow account may not be used to reduce
  12-21  or otherwise affect the annual appropriation to the collector that
  12-22  would otherwise be made.
  12-23        (d)  The owner may not withdraw funds <the money> in an <the>
  12-24  escrow account created pursuant to this section.
  12-25        (e)  The comptroller <of public accounts> shall promulgate a
   13-1  form entitled a Dealer's Motor Vehicle <Special> Inventory Tax
   13-2  Statement.  A dealer <The owner of a special inventory> shall
   13-3  complete the form with respect to each motor vehicle <unit> sold.
   13-4  A dealer  <from the owner's applicable inventory and> may use no
   13-5  other form for that purpose.  The statement <form> may include the
   13-6  information the comptroller deems appropriate but shall include at
   13-7  least the following:
   13-8              (1)  a description of the motor vehicle <unit> sold;
   13-9              (2)  <a statement as to whether or not the unit was
  13-10  sold from the owner's special inventory;>
  13-11              <(3)>  the sales price of the motor vehicle <unit>;
  13-12              (3) <(4)>  the unit property tax <value> of the motor
  13-13  vehicle <unit> if any <the unit was sold from the owner's special
  13-14  inventory>; and
  13-15              (4) <(5)>  the reason no unit property tax is assigned
  13-16  <the unit was excluded from the owner's special inventory,> if no
  13-17  unit property tax <value> is assigned.
  13-18        (f)  On or before the 10th day of each month <the owner of> a
  13-19  dealer <special inventory> shall file with the collector <chief
  13-20  appraiser> the <special inventory tax> statement covering the sale
  13-21  of each motor vehicle sold by the dealer <for each unit sold by the
  13-22  owner from the owner's applicable inventory> in the prior month.  A
  13-23  dealer <An owner> shall file a copy of the statement with the chief
  13-24  appraiser and retain documentation relating to the disposition of
  13-25  each motor vehicle <unit> sold <from an applicable inventory,
   14-1  including documentation relating to the exclusion of a unit from
   14-2  special inventory and shall make that documentation available to
   14-3  the chief appraiser upon request>.  A chief appraiser or collector
   14-4  may examine documents held by a dealer as provided by this
   14-5  subsection in the same manner, and subject to the same provisions,
   14-6  as are set forth in Section 23.121(g) of this code.
   14-7        (g)  Except as provided by this subsection, the requirements
   14-8  of Subsection (f) of this section apply to all dealers, without
   14-9  regard to whether or not the dealer owes vehicle inventory tax for
  14-10  the current year.  A dealer who owes no vehicle inventory tax for
  14-11  the current year because he was not in business on January 1:
  14-12              (1)  shall file the statement required by this section
  14-13  showing the information required by this section for each month
  14-14  during which the dealer is in business; and
  14-15              (2)  may neither assign a unit property tax to a motor
  14-16  vehicle sold by the dealer nor remit money with the statement
  14-17  unless pursuant to the terms of a contract as provided by
  14-18  Subsection (l) of this section.
  14-19        (h)  A collector may establish a procedure, voluntary or
  14-20  mandatory, by which the unit property tax of a vehicle is paid and
  14-21  deposited into an owner's escrow account at the time of processing
  14-22  the transfer of title to the motor vehicle.
  14-23        (i) <(g)>  A relevant taxing unit shall, on its tax bill
  14-24  prepared for the owner of a dealer's motor vehicle <special>
  14-25  inventory, separately itemize the taxes levied against the dealer's
   15-1  motor vehicle <special> inventory.  When the tax bill is prepared
   15-2  by a relevant taxing unit for a dealer's motor vehicle <special>
   15-3  inventory, the assessor for the relevant taxing unit, or an entity,
   15-4  if any, other than the collector, that collects taxes on behalf of
   15-5  the taxing unit, shall provide the collector a true and correct
   15-6  copy of the tax bill sent to the owner, including taxes levied
   15-7  against the dealer's motor vehicle <owner's special> inventory.
   15-8  The collector shall apply the money in the owner's escrow account
   15-9  to the taxes imposed and deliver a tax receipt to the owner.  The
  15-10  collector shall apply the amount to each relevant taxing unit in
  15-11  proportion to the amount of taxes levied, and the assessor of each
  15-12  relevant taxing unit shall apply the funds received from the
  15-13  collector to the taxes owed by the owner.
  15-14        (j) <(h)>  If the amount in the escrow account is not
  15-15  sufficient to pay the taxes in full, the collector shall apply the
  15-16  money to the taxes and deliver to the owner a tax receipt for the
  15-17  partial payment and a tax bill for the amount of the deficiency
  15-18  <unpaid amount> together with a statement that the owner must remit
  15-19  to the collector the balance of the total tax due.
  15-20        (k) <(i)>  The collector shall remit to each relevant taxing
  15-21  unit the total amount collected by the collector in deficiency
  15-22  payments.  The assessor of each relevant taxing unit shall apply
  15-23  those funds to the taxes owed by the owner.  Taxes that are due but
  15-24  not received by the collector <and remitted by the collector to
  15-25  each relevant taxing unit> on or before January 31 are delinquent.
   16-1  Not later than February 15 the collector shall distribute to
   16-2  relevant taxing units in the manner set forth in this section all
   16-3  funds collected pursuant to the authority of this section and held
   16-4  in escrow by the collector as provided by this section.  This
   16-5  section does not impose a duty on a collector to collect delinquent
   16-6  taxes that the collector is not otherwise obligated by law or
   16-7  contract to collect.
   16-8        <(j)  The collector shall annually distribute among the
   16-9  relevant taxing units, in proportion to the taxes levied by each
  16-10  against the special inventory, funds, if any, that remain in the
  16-11  escrow account after the payment of all property taxes due.>
  16-12        <(k)  Not later than February 1 of each year, or, in the case
  16-13  of an owner who was not in business on January 1, not later than 30
  16-14  days after commencement of business, each owner shall file a
  16-15  special inventory declaration with the chief appraiser and file a
  16-16  copy with the county tax assessor-collector.  The declaration is
  16-17  sufficient to comply with this subsection if it sets forth the
  16-18  following information:>
  16-19              <(1)  the name and business address of each location at
  16-20  which the owner conducts business;>
  16-21              <(2)  each of the owner's general distinguishing
  16-22  numbers, if the owner has a general distinguishing number issued by
  16-23  the Texas Department of Transportation;>
  16-24              <(3)  a statement that the owner is the owner of a
  16-25  special inventory; and>
   17-1              <(4)  the market value of the inventory for the current
   17-2  tax year as computed under Section 23.12A(b) of this code.>
   17-3        (l)  A person who acquires the business or assets of an owner
   17-4  may, by contract, agree to pay the current year vehicle inventory
   17-5  taxes owed by the owner.  The owner who owes the current year tax
   17-6  and the person who acquires the business or assets of the owner
   17-7  shall jointly notify the chief appraiser and the collector of the
   17-8  terms of the agreement and of the fact that the other person has
   17-9  agreed to pay the current year vehicle inventory taxes owed by the
  17-10  dealer.  The chief appraiser and the collector shall adjust their
  17-11  records accordingly.  Notwithstanding the terms of Section 23.121
  17-12  of this code, a person who agrees to pay current year vehicle
  17-13  inventory taxes as provided by this subsection is not required to
  17-14  file a declaration until the year following the acquisition.  This
  17-15  subsection does not relieve the selling owner of the tax liability.
  17-16  <An owner who fails to file a special inventory declaration
  17-17  required by this section commits an offense.  An offense under this
  17-18  subsection is a misdemeanor punishable by a fine not to exceed
  17-19  $500. A fine collected under this subsection may be used only by
  17-20  the collector to defray the cost of enforcing this section.  Each
  17-21  day during which an owner fails to comply with the terms of this
  17-22  subsection is a separate violation.>
  17-23        (m)  A dealer <An owner> who fails to file a <special
  17-24  inventory tax> statement as required by this section commits an
  17-25  offense.  An offense under this subsection is a misdemeanor
   18-1  punishable by a fine not to exceed $100.   <A fine collected under
   18-2  this subsection may be used only by the collector to defray the
   18-3  cost of enforcing this section.>  Each day during which a dealer
   18-4  <an owner> fails to comply with the terms of this subsection is a
   18-5  separate violation.
   18-6        (n)  In addition to other penalties provided by law, a dealer
   18-7  who fails to file a statement as required by this section shall
   18-8  forfeit a penalty.  A tax lien attaches to the owner's business
   18-9  personal property to secure payment of the penalty.  The
  18-10  appropriate district attorney, criminal district attorney, or
  18-11  county attorney shall collect the penalty established by this
  18-12  section in the name of the chief appraiser or collector.  Venue of
  18-13  an action brought under this subsection is in the county in which
  18-14  the violation occurred or in the county in which the owner
  18-15  maintains his principal place of business or residence.  A penalty
  18-16  forfeited under this subsection is $500 for each month or part of a
  18-17  month in which a statement is not filed after it is due.
  18-18        (o)  An owner who fails to remit unit property taxes <the
  18-19  amounts> due as required by this section <Subsection (b) of this
  18-20  section> shall pay a penalty of five percent of the amount due.  If
  18-21  the amount is not paid within 10 days after the due date, the owner
  18-22  shall pay an additional penalty of five percent of the amount due.
  18-23  Notwithstanding the terms of this section, unit property taxes paid
  18-24  on or before January 31 of the year following the date on which
  18-25  they are due are not delinquent.  The collector, the collector's
   19-1  designated agent, or the county or district attorney shall enforce
   19-2  the terms of this subsection<, and a penalty collected under this
   19-3  subsection may be used only by the collector to defray the cost of
   19-4  enforcing this section>. A penalty under this subsection is in
   19-5  addition to any other penalty provided by law <that may be due> if
   19-6  the owner's taxes are delinquent <not paid in full by January 31>.
   19-7        (p)  Fines collected pursuant to the authority of this
   19-8  section shall be deposited in the county depository to the credit
   19-9  of the general fund.  Penalties collected pursuant to the authority
  19-10  of this section are the sole property of the collector, may be used
  19-11  by no entity other than the collector, and may not be used to
  19-12  reduce or otherwise affect the annual appropriation to the
  19-13  collector that would otherwise be made.
  19-14        SECTION 4.  Chapter 23, Subchapter B, Tax Code, is amended by
  19-15  adding Section 23.123 to read as follows:
  19-16        Sec. 23.123.  DECLARATIONS AND STATEMENTS CONFIDENTIAL.  (a)
  19-17  In this section:
  19-18              (1)  "Collector" has the meaning given it in Section
  19-19  23.122 of this code.
  19-20              (2)  "Chief appraiser" has the meaning given it in
  19-21  Section 23.122 of this code.
  19-22              (3)  "Dealer" has the meaning given it in Section
  19-23  23.121 of this code.
  19-24              (4)  "Declaration" has the meaning given it in Section
  19-25  23.122 of this code.
   20-1              (5)  "Owner" has the meaning given it in Section 23.121
   20-2  of this code.
   20-3              (6)  "Statement" has the meaning given it in Section
   20-4  23.122 of this code.
   20-5        (b)  Except as provided by this section, a declaration or
   20-6  statement filed with a chief appraiser or collector as required by
   20-7  Section 23.121 or Section 23.122 of this code is confidential and
   20-8  not open to public inspection.  A declaration or statement and the
   20-9  information contained in either may not be disclosed to anyone
  20-10  except an employee of the appraisal office who appraises the
  20-11  property or to an employee of the county tax assessor-collector
  20-12  involved in the maintenance of the owner's escrow account.
  20-13        (c)  Information made confidential by this section may be
  20-14  disclosed:
  20-15              (1)  in a judicial or administrative proceeding
  20-16  pursuant to a lawful subpoena;
  20-17              (2)  to the person who filed the declaration or
  20-18  statement or to that person's representative authorized by the
  20-19  person in writing to receive the information;
  20-20              (3)  to the comptroller or an employee of the
  20-21  comptroller authorized by the comptroller to receive the
  20-22  information;
  20-23              (4)  to a collector or chief appraiser;
  20-24              (5)  to a district attorney, criminal district attorney
  20-25  or county attorney involved in the enforcement of a penalty imposed
   21-1  pursuant to Section 23.121 or Section 23.122 of this code;
   21-2              (6)  for statistical purposes if in a form that does
   21-3  not identify specific property or a specific property owner; or
   21-4              (7)  if and to the extent that the information is
   21-5  required for inclusion in a public document or record that the
   21-6  appraisal or collection office is required by law to prepare or
   21-7  maintain.
   21-8        (d)  A person who knowingly permits inspection of a
   21-9  declaration or statement by a person not authorized to inspect the
  21-10  declaration or statement or who discloses confidential information
  21-11  contained in the declaration or statement to a person not
  21-12  authorized to receive the information commits an offense.  An
  21-13  offense under this subsection is a Class B misdemeanor.
  21-14        SECTION 5.  Section 152.002(b), Tax Code, is amended to read
  21-15  as follows:
  21-16        (b)  "Total consideration" does not include:
  21-17              (1)  a cash discount;
  21-18              (2)  a full cash or credit refund to a customer of the
  21-19  sales price of a motor vehicle returned to the seller;
  21-20              (3)  the amount charged for labor or service rendered
  21-21  in installing, applying, remodeling, or repairing the motor vehicle
  21-22  sold;
  21-23              (4)  a financing, carrying, or service charge or
  21-24  interest on credit extended on a motor vehicle sold under a
  21-25  conditional sale or other deferred payment contract;
   22-1              (5)  the value of a motor vehicle taken by a seller as
   22-2  all or a part of the consideration for sale of another motor
   22-3  vehicle; <or>
   22-4              (6)  a charge for transportation of the motor vehicle
   22-5  after a sale; or
   22-6              (7)  motor vehicle inventory tax.
   22-7        SECTION 6.  This Act takes effect January 1, 1996.
   22-8        SECTION 7.  The importance of this legislation and the
   22-9  crowded condition of the calendars in both houses create an
  22-10  emergency and an imperative public necessity that the
  22-11  constitutional rule requiring bills to be read on three several
  22-12  days in each house be suspended, and this rule is hereby suspended.