1-1        By:  Craddick (Senate Sponsor - Montford)       H.B. No. 2624
    1-2        (In the Senate - Received from the House April 21, 1995;
    1-3  April 25, 1995, read first time and referred to Committee on
    1-4  Finance; May 4, 1995, reported favorably, as amended, by the
    1-5  following vote:  Yeas 12, Nays 0; May 4, 1995, sent to printer.)
    1-6  COMMITTEE AMENDMENT NO. 1                             By:  Moncrief
    1-7        H.B. No. 2624, House of Representatives Engrossment, is
    1-8  amended as follows:
    1-9        (1)  On page 3, line 16 of the House Engrossment, insert the
   1-10  following after the word "means":  "a towable recreational vehicle
   1-11  or".
   1-12        (2)  On page 3 of the House Engrossment, delete all language
   1-13  beginning with and including the comma after the word "highway" on
   1-14  line 19, and ending with and including the word "vehicle" on line
   1-15  21.
   1-16        (3)  Insert the following after page 5, line 9 of the House
   1-17  Engrossment:
   1-18              "(14)  Towable recreational vehicle" means a
   1-19  non-motorized vehicle that is designed for temporary human
   1-20  habitation for recreational, camping or seasonal use, and:
   1-21                    (A)  is titled and registered with the Texas
   1-22  Department of Transportation through the county tax
   1-23  assessor-collector;
   1-24                    (B)  is permanently built on a single chassis;
   1-25                    (C)  contains one or more life support systems;
   1-26  and
   1-27                    (D)  is designed to be towable by a motor
   1-28  vehicle."
   1-29        (4)  On page 7, line 10 of the House Engrossment, insert the
   1-30  following after the comma following the word "records":  "at the
   1-31  location for which the general distinguishing number has been
   1-32  issued,".
   1-33        (5)  On page 8, line 6 of the House Engrossment, delete the
   1-34  word "person" and insert the word "dealer" after the word "A".
   1-35        (6)  Insert a new Section 5 of the bill, to read as follows
   1-36  and renumber all subsequent sections of the bill accordingly:
   1-37        "SECTION 5.  Section 152.002 (b), Tax Code, is amended to
   1-38  read as follows:
   1-39              (b)  'Total consideration' does not include:
   1-40                    (1)  a cash discount;
   1-41                    (2)  a full cash or credit refund to a customer
   1-42  of the sales price of a motor vehicle returned to the seller;
   1-43                    (3)  the amount charged for labor or service
   1-44  rendered in installing, applying, remodeling, or repairing the
   1-45  motor vehicle sold;
   1-46                    (4)  a financing, carrying, or service charge or
   1-47  interest on credit extended on a motor vehicle sold under a
   1-48  conditional sale or other deferred payment contract;
   1-49                    (5)  the value of a motor vehicle taken by a
   1-50  seller as all or a part of the consideration for sale of another
   1-51  motor vehicle; <or>
   1-52                    (6)  a charge for transportation of the motor
   1-53  vehicle after a sale, or
   1-54                    (7)  motor vehicle inventory tax.
   1-55  COMMITTEE AMENDMENT NO. 2                             By:  Montford
   1-56        Amend H.B. No. 2624 as follows:
   1-57        (1)  In SECTION 1 of the bill, Section 23.12(f), Tax Code
   1-58  (House Engrossment, page 1, line 9), strike "23.12A" and substitute
   1-59  "23.121 <23.12A>".
   1-60        (2)  In SECTION 2 of the bill, Section 23.12A, Tax Code
   1-61  (House Engrossment, page 2, line 2), strike "23.12A" and substitute
   1-62  "23.121 <23.12A>".
   1-63        (3)  In SECTION 2 of the bill, Section 23.12A(f), Tax Code
   1-64  (House Engrossment, page 6, line 17), strike "23.12B(l)" and
   1-65  substitute "23.122(l)".
   1-66        (4)  In SECTION 2 of the bill, Section 23.12A(f)(4), Tax Code
   1-67  (House Engrossment, page 7, line 5), strike "23.12A(b)" and
   1-68  substitute "23.121(b)".
    2-1        (5)  In SECTION 2 of the bill, Section 23.12A(g)(2), Tax Code
    2-2  (House Engrossment, page 7, line 20), strike "23.12B" and
    2-3  substitute "23.122".
    2-4        (6)  In SECTION 3 of the bill, Section 23.12B, Tax Code
    2-5  (House Engrossment, page 8, line 25), strike "23.12B" and
    2-6  substitute "23.122 <23.12B>".
    2-7        (7)  In SECTION 3 of the bill, Section 23.12B(a)(2), Tax Code
    2-8  (House Engrossment, page 9, line 4), strike "23.12A" and substitute
    2-9  "23.121".
   2-10        (8)  In SECTION 3 of the bill, Section 23.12B(a)(3), Tax Code
   2-11  (House Engrossment, page 9, line 7), strike "23.12A" and substitute
   2-12  "23.121".
   2-13        (9)  In SECTION 3 of the bill, Section 23.12B(a)(4), Tax Code
   2-14  (House Engrossment, page 9, line 11), strike "23.12A" and
   2-15  substitute "23.121".
   2-16        (10)  In SECTION 3 of the bill, Section 23.12B(a)(5), Tax
   2-17  Code (House Engrossment, page 9, line 13), strike "23.12A" and
   2-18  substitute "23.121".
   2-19        (11)  In SECTION 3 of the bill, Section 23.12B(a)(6), Tax
   2-20  Code (House Engrossment, page 9, line 17), strike "23.12A" and
   2-21  substitute "23.121 <23.12A>".
   2-22        (12)  In SECTION 3 of the bill, Section 23.12B(a)(8), Tax
   2-23  Code (House Engrossment, page 9, line 22), strike "23.12A" and
   2-24  substitute "23.121 <23.12A>".
   2-25        (13)  In SECTION 3 of the bill, Section 23.12B(a)(10), Tax
   2-26  Code (House Engrossment, page 10, line 3), strike "23.12A" and
   2-27  substitute "23.121".
   2-28        (14)  In SECTION 3 of the bill, Section 23.12B(a)(11), Tax
   2-29  Code (House Engrossment, page 10, line 5), strike "23.12A" and
   2-30  substitute "23.121 <23.12A>".
   2-31        (15)  In SECTION 3 of the bill, Section 23.12B(f), Tax Code
   2-32  (House Engrossment, page 12, line 25), strike "23.12A(g)" and
   2-33  substitute "23.121(g)".
   2-34        (16)  In SECTION 3 of the bill, Section 23.12B(l), Tax Code
   2-35  (House Engrossment, page 15, line 24), strike "23.12A" and
   2-36  substitute "23.121".
   2-37        (17)  In SECTION 4 of the bill, Section 23.12C, Tax Code
   2-38  (House Engrossment, page 17, line 25), strike "23.12C" and
   2-39  substitute "23.123".
   2-40        (18)  In SECTION 4 of the bill, Section 23.12C(a)(1), Tax
   2-41  Code (House Engrossment, page 18, line 1), strike "23.12B" and
   2-42  substitute "23.122".
   2-43        (19)  In SECTION 4 of the bill, Section 23.12C(a)(2), Tax
   2-44  Code (House Engrossment, page 18, line 3), strike "23.12B" and
   2-45  substitute "23.122".
   2-46        (20)  In SECTION 4 of the bill, Section 23.12C(a)(3), Tax
   2-47  Code (House Engrossment, page 18, line 5), strike "23.12A" and
   2-48  substitute "23.121".
   2-49        (21)  In SECTION 4 of the bill, Section 23.12C(a)(4), Tax
   2-50  Code (House Engrossment, page 18, line 7), strike "23.12B" and
   2-51  substitute "23.122".
   2-52        (22)  In SECTION 4 of the bill, Section 23.12C(a)(5), Tax
   2-53  Code (House Engrossment, page 18, line 8), strike "23.12A" and
   2-54  substitute "23.121".
   2-55        (23)  In SECTION 4 of the bill, Section 23.12C(a)(6), Tax
   2-56  Code (House Engrossment, page 18, line 11), strike "23.12B" and
   2-57  substitute "23.122".
   2-58        (24)  In SECTION 4 of the bill, Section 23.12C(b), Tax Code
   2-59  (House Engrossment, page 18, line 14), strike "23.12A" and
   2-60  substitute "23.121" and strike "23.12B" and substitute "23.122".
   2-61        (25)  In SECTION 4 of the bill, Section 23.12C(c)(5), Tax
   2-62  Code (House Engrossment, page 19, line 6), strike "23.12A" and
   2-63  substitute "23.121" and strike "23.12B" and substitute "23.122".
   2-64                         A BILL TO BE ENTITLED
   2-65                                AN ACT
   2-66  relating to the appraisal and ad valorem taxation of certain types
   2-67  of personal property; providing penalties.
   2-68        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   2-69        SECTION 1.  Section 23.12(f), Tax Code, is amended to read as
   2-70  follows:
    3-1        (f)  The owner of an inventory other than a dealer's motor
    3-2  vehicle <an applicable> inventory as that term is defined in
    3-3  Section 23.12A of this code may elect to have the inventory
    3-4  appraised at its market value as of September 1 of the year
    3-5  preceding the tax year to which the appraisal applies by filing an
    3-6  application with the chief appraiser requesting that the inventory
    3-7  be appraised as of September 1.  The application must clearly
    3-8  describe the inventory to which it applies and be signed by the
    3-9  owner of the inventory.  The application applies to the appraisal
   3-10  of the inventory in each tax year that begins after the next August
   3-11  1 following the date the application is filed with the chief
   3-12  appraiser unless the owner of the inventory by written notice filed
   3-13  with the chief appraiser revokes the application or the ownership
   3-14  of the inventory changes.  A notice revoking the application is
   3-15  effective for each tax year that begins after the next September 1
   3-16  following the date the notice of revocation is filed with the chief
   3-17  appraiser.
   3-18        SECTION 2.  Section 23.12A, Tax Code, is amended to read as
   3-19  follows:
   3-20        Sec. 23.12A.  DEALER'S MOTOR VEHICLE <Special> Inventory;
   3-21  Value.  (a)  In this section:
   3-22              (1)  "Chief appraiser" means the chief appraiser for
   3-23  the appraisal district in which a dealer's motor vehicle inventory
   3-24  is located.  <"Applicable inventory" means an inventory that is
   3-25  held for resale and that consists of individual units of personal
   3-26  property, each unit of which must, as a matter of law, be titled in
   3-27  the name of the retail purchaser and be registered with the Texas
   3-28  Department of Transportation through the office of the county tax
   3-29  assessor-collector.>
   3-30              (2)  "Collector" means the county tax
   3-31  assessor-collector in the county in which a dealer's motor vehicle
   3-32  inventory is located.
   3-33              (3)  "Dealer" means a person who holds a dealer's
   3-34  general distinguishing number issued by the Texas Department of
   3-35  Transportation under the authority of Article 6686, Revised
   3-36  Statutes, or is authorized by law or interstate reciprocity
   3-37  agreement to purchase vehicles in Texas without paying the motor
   3-38  vehicle sales tax.  The term does not include:
   3-39                    (A)  a person who holds a manufacturer's license
   3-40  issued by the Motor Vehicle Board of the Texas Department of
   3-41  Transportation;
   3-42                    (B)  an entity that is owned or controlled by a
   3-43  person who holds a manufacturer's license issued by the Motor
   3-44  Vehicle Board of the Texas Department of Transportation; or
   3-45                    (C)  a dealer whose general distinguishing number
   3-46  issued by the Texas Department of Transportation under the
   3-47  authority of Article 6686, Revised Statutes, prohibits the dealer
   3-48  from selling a vehicle to any person except a dealer.
   3-49              (4)  "Dealer's motor vehicle inventory" means all motor
   3-50  vehicles held for sale by a dealer.
   3-51              (5)  "Dealer-financed sale" means the sale of a motor
   3-52  vehicle in which the seller finances the purchase of the vehicle,
   3-53  is the sole lender in the transaction, and retains exclusively the
   3-54  right to enforce the terms of the agreement evidencing the sale.
   3-55              (6)  "Declaration" means the dealer's motor vehicle
   3-56  inventory declaration form promulgated by the comptroller as
   3-57  required by this section.
   3-58              (7)  "Fleet transaction" means the sale of five or more
   3-59  motor vehicles from a dealer's motor vehicle inventory to the same
   3-60  business entity within one calendar year.
   3-61              (8)  "Motor vehicle" means a fully self-propelled
   3-62  vehicle with at least two wheels which has as its primary purpose
   3-63  the transport of a person or persons, or property, whether or not
   3-64  intended for use on a public street, road, or highway, or a vehicle
   3-65  without automotive power designed for human habitation and for
   3-66  being drawn by a motor vehicle.  The term does not include a
   3-67  vehicle with respect to which the certificate of title has been
   3-68  surrendered in exchange for a salvage certificate in the manner
   3-69  provided by law.
   3-70              (9) <(3)  "Excluded inventory" means that part of an
    4-1  applicable inventory that:>
    4-2                    <(A)  is included in a transaction consisting of
    4-3  five or more units sold to a single business entity that has a
    4-4  manufacturer's or distributor's fleet identification number
    4-5  authorizing the entity to make fleet purchases;>
    4-6                    <(B)  is included in a transaction between
    4-7  dealers; or>
    4-8                    <(C)  consists of vehicles classified as medium
    4-9  or heavy duty trucks of 16,000 pounds gross vehicular weight or
   4-10  more.>
   4-11              <(4)>  "Owner" means a dealer who owes current year
   4-12  vehicle inventory taxes <the person responsible for the payment of
   4-13  property taxes> levied against a dealer's motor vehicle <special>
   4-14  inventory.
   4-15              (10)  "Person" means a natural person, corporation,
   4-16  partnership, or other legal entity.
   4-17              (11) <(5)>  "Sales price" means the total amount of
   4-18  money paid or to be paid for the purchase of a motor vehicle as set
   4-19  forth as "sales price" in the form entitled "Application for Texas
   4-20  Certificate of Title" promulgated by the Texas Department of
   4-21  Transportation.  In a transaction that does not involve the use of
   4-22  that form, the term means an amount of money that is equivalent, or
   4-23  substantially equivalent, to the amount that would appear as "sales
   4-24  price" on the Application for Texas Certificate of Title if that
   4-25  form were involved.
   4-26              (12)  "Subsequent sale" means a dealer-financed sale of
   4-27  a motor vehicle that, at the time of the sale, has been the subject
   4-28  of a dealer-financed sale from the same dealer's motor vehicle
   4-29  inventory in the same calendar year.
   4-30              (13) <(6)  "Special inventory" means that part of an
   4-31  applicable inventory that remains after subtracting units included
   4-32  in excluded inventory.>
   4-33              <(7)>  "Total annual sales" means the total of the
   4-34  sales price from every sale <of units> from a dealer's motor
   4-35  vehicle <special> inventory for a 12-month period <or for that
   4-36  portion of a 12-month period for which the owner of a special
   4-37  inventory is responsible for the payment of property taxes levied
   4-38  against the special inventory>.
   4-39        (b)  For <Except as provided by Subsection (c) of this
   4-40  section, for> the purpose of the computation of property tax, the
   4-41  market value of a dealer's motor vehicle <special> inventory on
   4-42  January 1 is the total annual sales from the dealer's motor vehicle
   4-43  <special> inventory, less sales to dealers, fleet transactions, and
   4-44  subsequent sales, for the 12-month period corresponding to the
   4-45  prior tax year, divided by 12.
   4-46        (c)  For the purpose of the computation of property tax, the
   4-47  market value of the dealer's motor vehicle <a special> inventory of
   4-48  an owner who was not a dealer on January 1 of <with respect to
   4-49  which sales were not made for the entire 12-month period
   4-50  corresponding to> the prior tax year, the chief appraiser shall
   4-51  <may> estimate the market value of the dealer's motor vehicle
   4-52  <special> inventory.  In making the estimate required <allowed> by
   4-53  this subsection the chief appraiser shall extrapolate using sales
   4-54  data, if any, generated by sales from the dealer's motor vehicle
   4-55  <special> inventory in the prior tax year.
   4-56        (d)  Except for dealer's motor vehicle inventory, personal
   4-57  property held by a dealer <Excluded inventory described in
   4-58  Subsection (a)(3)(C) of this section> is appraised as provided by
   4-59  other sections <Section 23.12(a)> of this code.  In the case of a
   4-60  dealer whose sales from dealer's motor vehicle inventory are made
   4-61  predominately to dealers, the chief appraiser shall appraise the
   4-62  dealer's motor vehicle inventory as provided by Section 23.12 of
   4-63  this code.
   4-64        (e)  A dealer is presumed to be an owner of a dealer's motor
   4-65  vehicle inventory on January 1 if, in the 12-month period ending on
   4-66  December 31 of the immediately preceding year, the dealer sold a
   4-67  motor vehicle to a person other than a dealer.  The presumption
   4-68  created by this subsection is not rebutted by the fact that a
   4-69  dealer has no motor vehicles physically on hand for sale from
   4-70  dealer's motor vehicle inventory on January 1.
    5-1        (f)  The comptroller shall promulgate a form entitled
    5-2  Dealer's Motor Vehicle Inventory Declaration.  Except as provided
    5-3  by Section 23.12B(l) of this code, not later than February 1 of
    5-4  each year, or, in the case of a dealer who was not in business on
    5-5  January 1, not later than 30 days after commencement of business,
    5-6  each dealer shall file a declaration with the chief appraiser and
    5-7  file a copy with the collector.  The declaration is sufficient to
    5-8  comply with this subsection if it sets forth the following
    5-9  information:
   5-10              (1)  the name and business address of each location at
   5-11  which the dealer owner conducts business;
   5-12              (2)  each of the dealer's general distinguishing
   5-13  numbers issued by the Texas Department of Transportation;
   5-14              (3)  a statement that the dealer owner is the owner of
   5-15  a dealer's motor vehicle inventory; and
   5-16              (4)  the market value of the dealer's motor vehicle
   5-17  inventory for the current tax year as computed under Section
   5-18  23.12A(b) of this code.
   5-19        (g)  Under the terms provided by this subsection, the chief
   5-20  appraiser may examine the books and records of the holder of a
   5-21  general distinguishing number issued by the Texas Department of
   5-22  Transportation.  A request made under this subsection must be made
   5-23  in writing, delivered personally to the custodian of the records,
   5-24  must provide a period not less than 15 days for the person to
   5-25  respond to the request, and must state that the person to whom it
   5-26  is addressed has the right to seek judicial relief from compliance
   5-27  with the request.  In a request made under this section the chief
   5-28  appraiser may examine:
   5-29              (1)  the document issued by the Texas Department of
   5-30  Transportation showing the person's general distinguishing number;
   5-31              (2)  documentation appropriate to allow the chief
   5-32  appraiser to ascertain the applicability of this section and
   5-33  Section 23.12B of this code to the person;
   5-34              (3)  sales records to substantiate information set
   5-35  forth in the dealer's declaration filed by the person.
   5-36        (h)  If a dealer fails to file a declaration as required by
   5-37  this section, or if, on the declaration required by this section, a
   5-38  dealer reports the sale of fewer than five motor vehicles in the
   5-39  prior year, the chief appraiser shall report that fact to the Texas
   5-40  Department of Transportation.
   5-41        (i)  A dealer who fails to file a declaration required by
   5-42  this section commits an offense.  An offense under this subsection
   5-43  is a misdemeanor punishable by a fine not to exceed $500.  Each day
   5-44  during which a dealer fails to comply with the terms of this
   5-45  subsection is a separate violation.
   5-46        (j)  A person who violates Subsection (g) of this section
   5-47  commits an offense.  An offense under this subsection is a
   5-48  misdemeanor punishable by a fine not to exceed $500.  Each day
   5-49  during which a person fails to comply with the terms of Subsection
   5-50  (g) of this section is a separate violation.
   5-51        (k)  In addition to other penalties provided by law, a dealer
   5-52  who fails to file a declaration required by this section shall
   5-53  forfeit a penalty.  A tax lien attaches to the dealer's business
   5-54  personal property to secure payment of the penalty.  The
   5-55  appropriate district attorney, criminal district attorney, or
   5-56  county attorney shall collect the penalty established by this
   5-57  section in the name of the chief appraiser or collector.  Venue of
   5-58  an action brought under this subsection is in the county in which
   5-59  the violation occurred or in the county in which the owner
   5-60  maintains his principal place of business or residence.  A penalty
   5-61  forfeited under this subsection is $1,000 for each month or part of
   5-62  a month in which a declaration is not filed after it is due.
   5-63        SECTION 3.  Section 23.12B, Tax Code, is amended to read as
   5-64  follows:
   5-65        Sec. 23.12B.  Prepayment of Taxes by Certain Taxpayers.
   5-66  (a)  In this section:
   5-67              (1)  "Aggregate tax rate" means the combined tax rates
   5-68  of all relevant taxing units authorized by law to levy property
   5-69  taxes against a dealer's motor vehicle inventory.
   5-70              (2)  "Chief appraiser" has the meaning given it in
    6-1  Section 23.12A of this code <means the chief appraiser for the
    6-2  appraisal district in which is located an applicable inventory>.
    6-3              (3) <(2)>  "Collector" has the meaning given it in
    6-4  Section 23.12A of this code <means the county tax
    6-5  assessor-collector in the county in which is located a special
    6-6  inventory>.
    6-7              (4)  "Dealer's motor vehicle inventory" has the meaning
    6-8  given it in Section 23.12A of this code.
    6-9              (5)  "Declaration" has the meaning given it in Section
   6-10  23.12A of this code.
   6-11              (6) <(3)  "County aggregate tax rate" means the
   6-12  combined tax rate of all relevant taxing units in a county.>
   6-13              <(4)>  "Owner" has the meaning given it in Section
   6-14  23.12A of this code.
   6-15              (7) <(5)>  "Relevant taxing unit" means a taxing unit,
   6-16  including the county, authorized by law to levy property taxes
   6-17  against a dealer's motor vehicle <special> inventory.
   6-18              (8) <(6)>  "Sales price" has the meaning given it in
   6-19  Section 23.12A of this code.
   6-20              (9)  "Statement" <(7)  "Special inventory" has the
   6-21  meaning given it in Section 23.12A of this code.>
   6-22              <(8)  "Special inventory tax statement"> means the
   6-23  Dealer's Motor Vehicle Inventory Tax Statement filed on a form
   6-24  promulgated by the comptroller <of public accounts> as required by
   6-25  this section.
   6-26              (10)  "Subsequent sale" has the meaning given it in
   6-27  Section 23.12A of this code.
   6-28              (11) <(9)>  "Total annual sales" has the meaning given
   6-29  it in Section 23.12A of this code.
   6-30              (12) <(10)>  "Unit property tax <value> factor" means a
   6-31  number equal to <is> one-twelfth of the prior year <most recent
   6-32  county> aggregate tax rate at the location where a dealer's motor
   6-33  vehicle <for the county in which a special> inventory is located on
   6-34  January 1 of the current year.
   6-35        (b)  Except for a vehicle sold to a dealer, a vehicle
   6-36  included in a fleet transaction, or a vehicle that is the subject
   6-37  of a subsequent sale, an owner or a person who has agreed by
   6-38  contract to pay the owner's current year property taxes levied
   6-39  against the owner's motor vehicle inventory <An owner> shall assign
   6-40  a unit property tax <value> to each motor vehicle <unit> sold from
   6-41  a dealer's motor vehicle <special> inventory.  The unit property
   6-42  tax <value> of each motor vehicle <unit> is determined by
   6-43  multiplying the sales price of the motor vehicle <unit> by the unit
   6-44  property tax <value> factor.  On or before the 10th day of each
   6-45  month the owner shall, together with the statement filed by the
   6-46  owner as provided by this section, deposit with the collector a sum
   6-47  equal to the total of unit property tax <value> assigned to all
   6-48  motor vehicles <units> sold from the dealer's motor vehicle
   6-49  <special> inventory in the prior month to which a unit property tax
   6-50  was assigned.  The money shall be deposited by the collector in or
   6-51  otherwise credited by the collector to the owner's escrow account
   6-52  for prepayment of property taxes as provided by this section.  An
   6-53  escrow account required by this section is used to pay property
   6-54  taxes levied against the dealer's motor vehicle <special>
   6-55  inventory, and the owner shall fund the escrow account as provided
   6-56  by this subsection.
   6-57        (c)  The collector shall maintain the escrow account for each
   6-58  owner in the county depository.  The collector is not required to
   6-59  maintain a separate account in the depository for each escrow
   6-60  account created as provided by this section but shall maintain
   6-61  separate records for each owner.  The collector shall retain any
   6-62  interest generated by the escrow account to defray the cost of
   6-63  administration of the prepayment procedure established by this
   6-64  section.  Interest generated by an escrow account created as
   6-65  provided by this section is the sole property of the collector, and
   6-66  that interest may be used by no entity other than the collector.
   6-67  Interest generated by an escrow account may not be used to reduce
   6-68  or otherwise affect the annual appropriation to the collector that
   6-69  would otherwise be made.
   6-70        (d)  The owner may not withdraw funds <the money> in an <the>
    7-1  escrow account created pursuant to this section.
    7-2        (e)  The comptroller <of public accounts> shall promulgate a
    7-3  form entitled a Dealer's Motor Vehicle <Special> Inventory Tax
    7-4  Statement.  A dealer <The owner of a special inventory> shall
    7-5  complete the form with respect to each motor vehicle <unit> sold.
    7-6  A dealer  <from the owner's applicable inventory and> may use no
    7-7  other form for that purpose.  The statement <form> may include the
    7-8  information the comptroller deems appropriate but shall include at
    7-9  least the following:
   7-10              (1)  a description of the motor vehicle <unit> sold;
   7-11              (2)  <a statement as to whether or not the unit was
   7-12  sold from the owner's special inventory;>
   7-13              <(3)>  the sales price of the motor vehicle <unit>;
   7-14              (3) <(4)>  the unit property tax <value> of the motor
   7-15  vehicle <unit> if any <the unit was sold from the owner's special
   7-16  inventory>; and
   7-17              (4) <(5)>  the reason no unit property tax is assigned
   7-18  <the unit was excluded from the owner's special inventory,> if no
   7-19  unit property tax <value> is assigned.
   7-20        (f)  On or before the 10th day of each month <the owner of> a
   7-21  dealer <special inventory> shall file with the collector <chief
   7-22  appraiser> the <special inventory tax> statement covering the sale
   7-23  of each motor vehicle sold by the dealer <for each unit sold by the
   7-24  owner from the owner's applicable inventory> in the prior month.  A
   7-25  dealer <An owner> shall file a copy of the statement with the chief
   7-26  appraiser and retain documentation relating to the disposition of
   7-27  each motor vehicle <unit> sold <from an applicable inventory,
   7-28  including documentation relating to the exclusion of a unit from
   7-29  special inventory and shall make that documentation available to
   7-30  the chief appraiser upon request>.  A chief appraiser or collector
   7-31  may examine documents held by a dealer as provided by this
   7-32  subsection in the same manner, and subject to the same provisions,
   7-33  as are set forth in Section 23.12A(g) of this code.
   7-34        (g)  Except as provided by this subsection, the requirements
   7-35  of Subsection (f) of this section apply to all dealers, without
   7-36  regard to whether or not the dealer owes vehicle inventory tax for
   7-37  the current year.  A dealer who owes no vehicle inventory tax for
   7-38  the current year because he was not in business on January 1:
   7-39              (1)  shall file the statement required by this section
   7-40  showing the information required by this section for each month
   7-41  during which the dealer is in business; and
   7-42              (2)  may neither assign a unit property tax to a motor
   7-43  vehicle sold by the dealer nor remit money with the statement
   7-44  unless pursuant to the terms of a contract as provided by
   7-45  Subsection (l) of this section.
   7-46        (h)  A collector may establish a procedure, voluntary or
   7-47  mandatory, by which the unit property tax of a vehicle is paid and
   7-48  deposited into an owner's escrow account at the time of processing
   7-49  the transfer of title to the motor vehicle.
   7-50        (i) <(g)>  A relevant taxing unit shall, on its tax bill
   7-51  prepared for the owner of a dealer's motor vehicle <special>
   7-52  inventory, separately itemize the taxes levied against the dealer's
   7-53  motor vehicle <special> inventory.  When the tax bill is prepared
   7-54  by a relevant taxing unit for a dealer's motor vehicle <special>
   7-55  inventory, the assessor for the relevant taxing unit, or an entity,
   7-56  if any, other than the collector, that collects taxes on behalf of
   7-57  the taxing unit, shall provide the collector a true and correct
   7-58  copy of the tax bill sent to the owner, including taxes levied
   7-59  against the dealer's motor vehicle <owner's special> inventory.
   7-60  The collector shall apply the money in the owner's escrow account
   7-61  to the taxes imposed and deliver a tax receipt to the owner.  The
   7-62  collector shall apply the amount to each relevant taxing unit in
   7-63  proportion to the amount of taxes levied, and the assessor of each
   7-64  relevant taxing unit shall apply the funds received from the
   7-65  collector to the taxes owed by the owner.
   7-66        (j) <(h)>  If the amount in the escrow account is not
   7-67  sufficient to pay the taxes in full, the collector shall apply the
   7-68  money to the taxes and deliver to the owner a tax receipt for the
   7-69  partial payment and a tax bill for the amount of the deficiency
   7-70  <unpaid amount> together with a statement that the owner must remit
    8-1  to the collector the balance of the total tax due.
    8-2        (k) <(i)>  The collector shall remit to each relevant taxing
    8-3  unit the total amount collected by the collector in deficiency
    8-4  payments.  The assessor of each relevant taxing unit shall apply
    8-5  those funds to the taxes owed by the owner.  Taxes that are due but
    8-6  not received by the collector <and remitted by the collector to
    8-7  each relevant taxing unit> on or before January 31 are delinquent.
    8-8  Not later than February 15 the collector shall distribute to
    8-9  relevant taxing units in the manner set forth in this section all
   8-10  funds collected pursuant to the authority of this section and held
   8-11  in escrow by the collector as provided by this section.  This
   8-12  section does not impose a duty on a collector to collect delinquent
   8-13  taxes that the collector is not otherwise obligated by law or
   8-14  contract to collect.
   8-15        <(j)  The collector shall annually distribute among the
   8-16  relevant taxing units, in proportion to the taxes levied by each
   8-17  against the special inventory, funds, if any, that remain in the
   8-18  escrow account after the payment of all property taxes due.>
   8-19        <(k)  Not later than February 1 of each year, or, in the case
   8-20  of an owner who was not in business on January 1, not later than 30
   8-21  days after commencement of business, each owner shall file a
   8-22  special inventory declaration with the chief appraiser and file a
   8-23  copy with the county tax assessor-collector.  The declaration is
   8-24  sufficient to comply with this subsection if it sets forth the
   8-25  following information:>
   8-26              <(1)  the name and business address of each location at
   8-27  which the owner conducts business;>
   8-28              <(2)  each of the owner's general distinguishing
   8-29  numbers, if the owner has a general distinguishing number issued by
   8-30  the Texas Department of Transportation;>
   8-31              <(3)  a statement that the owner is the owner of a
   8-32  special inventory; and>
   8-33              <(4)  the market value of the inventory for the current
   8-34  tax year as computed under Section 23.12A(b) of this code.>
   8-35        (l)  A person who acquires the business or assets of an owner
   8-36  may, by contract, agree to pay the current year vehicle inventory
   8-37  taxes owed by the owner.  The owner who owes the current year tax
   8-38  and the person who acquires the business or assets of the owner
   8-39  shall jointly notify the chief appraiser and the collector of the
   8-40  terms of the agreement and of the fact that the other person has
   8-41  agreed to pay the current year vehicle inventory taxes owed by the
   8-42  dealer.  The chief appraiser and the collector shall adjust their
   8-43  records accordingly.  Notwithstanding the terms of Section 23.12A
   8-44  of this code, a person who agrees to pay current year vehicle
   8-45  inventory taxes as provided by this subsection is not required to
   8-46  file a declaration until the year following the acquisition.  This
   8-47  subsection does not relieve the selling owner of the tax liability.
   8-48  <An owner who fails to file a special inventory declaration
   8-49  required by this section commits an offense.  An offense under this
   8-50  subsection is a misdemeanor punishable by a fine not to exceed
   8-51  $500. A fine collected under this subsection may be used only by
   8-52  the collector to defray the cost of enforcing this section.  Each
   8-53  day during which an owner fails to comply with the terms of this
   8-54  subsection is a separate violation.>
   8-55        (m)  A dealer <An owner> who fails to file a <special
   8-56  inventory tax> statement as required by this section commits an
   8-57  offense.  An offense under this subsection is a misdemeanor
   8-58  punishable by a fine not to exceed $100.   <A fine collected under
   8-59  this subsection may be used only by the collector to defray the
   8-60  cost of enforcing this section.>  Each day during which a dealer
   8-61  <an owner> fails to comply with the terms of this subsection is a
   8-62  separate violation.
   8-63        (n)  In addition to other penalties provided by law, a dealer
   8-64  who fails to file a statement as required by this section shall
   8-65  forfeit a penalty.  A tax lien attaches to the owner's business
   8-66  personal property to secure payment of the penalty.  The
   8-67  appropriate district attorney, criminal district attorney, or
   8-68  county attorney shall collect the penalty established by this
   8-69  section in the name of the chief appraiser or collector.  Venue of
   8-70  an action brought under this subsection is in the county in which
    9-1  the violation occurred or in the county in which the owner
    9-2  maintains his principal place of business or residence.  A penalty
    9-3  forfeited under this subsection is $500 for each month or part of a
    9-4  month in which a statement is not filed after it is due.
    9-5        (o)  An owner who fails to remit unit property taxes <the
    9-6  amounts> due as required by this section <Subsection (b) of this
    9-7  section> shall pay a penalty of five percent of the amount due.  If
    9-8  the amount is not paid within 10 days after the due date, the owner
    9-9  shall pay an additional penalty of five percent of the amount due.
   9-10  Notwithstanding the terms of this section, unit property taxes paid
   9-11  on or before January 31 of the year following the date on which
   9-12  they are due are not delinquent.  The collector, the collector's
   9-13  designated agent, or the county or district attorney shall enforce
   9-14  the terms of this subsection<, and a penalty collected under this
   9-15  subsection may be used only by the collector to defray the cost of
   9-16  enforcing this section>. A penalty under this subsection is in
   9-17  addition to any other penalty provided by law <that may be due> if
   9-18  the owner's taxes are delinquent <not paid in full by January 31>.
   9-19        (p)  Fines collected pursuant to the authority of this
   9-20  section shall be deposited in the county depository to the credit
   9-21  of the general fund.  Penalties collected pursuant to the authority
   9-22  of this section are the sole property of the collector, may be used
   9-23  by no entity other than the collector, and may not be used to
   9-24  reduce or otherwise affect the annual appropriation to the
   9-25  collector that would otherwise be made.
   9-26        SECTION 4.  Chapter 23, Subchapter B, Tax Code, is amended by
   9-27  adding Section 23.12C to read as follows:
   9-28        Sec. 23.12C.  DECLARATIONS AND STATEMENTS CONFIDENTIAL.  (a)
   9-29  In this section:
   9-30              (1)  "Collector" has the meaning given it in Section
   9-31  23.12B of this code.
   9-32              (2)  "Chief appraiser" has the meaning given it in
   9-33  Section 23.12B of this code.
   9-34              (3)  "Dealer" has the meaning given it in Section
   9-35  23.12A of this code.
   9-36              (4)  "Declaration" has the meaning given it in Section
   9-37  23.12B of this code.
   9-38              (5)  "Owner" has the meaning given it in Section 23.12A
   9-39  of this code.
   9-40              (6)  "Statement" has the meaning given it in Section
   9-41  23.12B of this code.
   9-42        (b)  Except as provided by this section, a declaration or
   9-43  statement filed with a chief appraiser or collector as required by
   9-44  Section 23.12A or Section 23.12B of this code is confidential and
   9-45  not open to public inspection.  A declaration or statement and the
   9-46  information contained in either may not be disclosed to anyone
   9-47  except an employee of the appraisal office who appraises the
   9-48  property or to an employee of the county tax assessor-collector
   9-49  involved in the maintenance of the owner's escrow account.
   9-50        (c)  Information made confidential by this section may be
   9-51  disclosed:
   9-52              (1)  in a judicial or administrative proceeding
   9-53  pursuant to a lawful subpoena;
   9-54              (2)  to the person who filed the declaration or
   9-55  statement or to that person's representative authorized by the
   9-56  person in writing to receive the information;
   9-57              (3)  to the comptroller or an employee of the
   9-58  comptroller authorized by the comptroller to receive the
   9-59  information;
   9-60              (4)  to a collector or chief appraiser;
   9-61              (5)  to a district attorney, criminal district attorney
   9-62  or county attorney involved in the enforcement of a penalty imposed
   9-63  pursuant to Section 23.12A or Section 23.12B of this code;
   9-64              (6)  for statistical purposes if in a form that does
   9-65  not identify specific property or a specific property owner; or
   9-66              (7)  if and to the extent that the information is
   9-67  required for inclusion in a public document or record that the
   9-68  appraisal or collection office is required by law to prepare or
   9-69  maintain.
   9-70        (d)  A person who knowingly permits inspection of a
   10-1  declaration or statement by a person not authorized to inspect the
   10-2  declaration or statement or who discloses confidential information
   10-3  contained in the declaration or statement to a person not
   10-4  authorized to receive the information commits an offense.  An
   10-5  offense under this subsection is a Class B misdemeanor.
   10-6        SECTION 5.  This Act takes effect January 1, 1996.
   10-7        SECTION 6.  The importance of this legislation and the
   10-8  crowded condition of the calendars in both houses create an
   10-9  emergency and an imperative public necessity that the
  10-10  constitutional rule requiring bills to be read on three several
  10-11  days in each house be suspended, and this rule is hereby suspended.
  10-12                               * * * * *