By Heflin                                             H.B. No. 2940
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the taxation for property tax purposes of certain items
    1-3  of tangible personal property.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subsection (a), Section 23.12A, Tax Code, is
    1-6  amended to read as follows:
    1-7        (a)  In this section:
    1-8              (1)  "Applicable inventory" means an inventory that is
    1-9  held for resale and that consists of individual units of personal
   1-10  property, each unit of which:
   1-11                    (A)  must, as a matter of law, be titled in the
   1-12  name of the retail purchaser and be registered with the Texas
   1-13  Department of Transportation through the office of the county tax
   1-14  assessor-collector;
   1-15                    (B)  must, as a matter of law, be titled in the
   1-16  name of the retail purchaser pursuant to Chapter 31, Parks and
   1-17  Wildlife Code; or
   1-18                    (C)  would be required, as a matter of law, to be
   1-19  titled in the name of the retail purchaser pursuant to Chapter 31,
   1-20  Parks and Wildlife Code, but for the exception provided by Section
   1-21  31.055, Parks and Wildlife Code.
   1-22              (2)  "Dealer" means a person who holds a dealer's
   1-23  general distinguishing number issued by the Texas Department of
    2-1  Transportation under the authority of Article 6686, Revised Civil
    2-2  Statutes.
    2-3              (3)  "Excluded inventory" means that part of an
    2-4  applicable inventory that:
    2-5                    (A)  is included in a transaction consisting of
    2-6  five or more units sold to a single business entity that has a
    2-7  manufacturer's or distributor's fleet identification number
    2-8  authorizing the entity to make fleet purchases;
    2-9                    (B)  is included in a transaction between dealers
   2-10  or vessel dealers; <or>
   2-11                    (C)  consists of vehicles classified as medium or
   2-12  heavy duty trucks of 16,000 pounds gross vehicular weight or more;
   2-13  or
   2-14                    (D)  consists of vessels of more than 65 feet in
   2-15  length, measured from end to end over the deck, excluding sheer.
   2-16              (4)  "Owner" means that person responsible for the
   2-17  payment of property taxes levied against a special inventory.
   2-18              (5)  "Sales price" means the total amount of money paid
   2-19  or to be paid, and other considerations transferred or to be
   2-20  transferred, for the purchase of:
   2-21                    (A)  a motor vehicle as set forth in the form
   2-22  entitled "Application for Texas Certificate of Title" promulgated
   2-23  by the Texas Department of Transportation;
   2-24                    (B)  a vessel as set forth in the form entitled
   2-25  "Application for Texas Certificate of Number/Title for Boat/Seller,
    3-1  Donor or Trader's Affidavit" promulgated by the Texas Parks and
    3-2  Wildlife Department or as would be set forth in such form, if such
    3-3  form were required to be filed; or
    3-4                    (C)  an outboard motor as set forth in the form
    3-5  entitled "Application for Texas Certificate of Title for and
    3-6  Outboard Motor/Seller, Donor or Trader's Affidavit" promulgated by
    3-7  the Texas Parks and Wildlife Department or as would be set forth in
    3-8  such form, if such form were required to be filed.
    3-9              (6)  "Special inventory" means that part of an
   3-10  applicable inventory that remains after subtracting units included
   3-11  in excluded inventory.
   3-12              (7)  "Total annual sales" means the total of the sales
   3-13  price from every sale of units from a special inventory for a
   3-14  12-month period or for that portion of a 12-month period for which
   3-15  the owner of a special inventory is responsible for the payment of
   3-16  property taxes levied against the special inventory.
   3-17              (8)  "Vessel dealer" means a person who holds a
   3-18  dealer's and manufacturer's number issued by the Texas Parks and
   3-19  Wildlife Department under the authority of Section 31.041, Parks
   3-20  and Wildlife Code.
   3-21        SECTION 2.  Subsection (d), Section 23.12A, Tax Code, is
   3-22  amended to read as follows:
   3-23        (d)  Excluded inventory described in Subsections (a)(3)(C)
   3-24  and (a)(3)(D) of this section is appraised as provided by Section
   3-25  23.12(a) of this code.
    4-1        SECTION 3.  Subsection (k), Section 23.12B, Tax Code, is
    4-2  amended to read as follows:
    4-3        (k)  Not later than February 1 of each year, or, in the case
    4-4  of an owner who was not in business on January 1, not later than 30
    4-5  days after commencement of business, each owner shall file a
    4-6  special inventory declaration with the chief appraiser and file a
    4-7  copy with the county tax assessor-collector.  The declaration is
    4-8  sufficient to comply with this subsection if it sets forth the
    4-9  following information:
   4-10              (1)  the name and business address of each location at
   4-11  which the owner conducts business;
   4-12              (2)  each of the owner's general distinguishing
   4-13  numbers, if the owner has a general distinguishing number issued by
   4-14  the Texas Department of Transportation;
   4-15              (3)  each of the owner's dealer's and manufacturer's
   4-16  numbers, if the owner has a dealer's and manufacturer's number
   4-17  issued by the Texas Parks and Wildlife Department;
   4-18              (4)  a statement that the owner is the owner of a
   4-19  special inventory; and
   4-20              (5) <(4)>  the market value of the inventory for the
   4-21  current tax year as computed under Section 23.12A(b) of this code.
   4-22        SECTION 4.  This Act takes effect on January 1, 1996.
   4-23        SECTION 5.  The importance of this legislation and the
   4-24  crowded condition of the calendars in both houses create an
   4-25  emergency and an imperative public necessity that the
    5-1  constitutional rule requiring bills to be read on three several
    5-2  days in each house be suspended, and this rule is hereby suspended.