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 * * * * *