By Cain S.B. No. 812
74R507 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the motor vehicle sales tax in a
1-3 transaction involving the lease of a motor vehicle.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 152.001(2), Tax Code, is amended to read
1-6 as follows:
1-7 (2) "Retail sale" means a sale of a motor vehicle
1-8 except:
1-9 (A) a sale in which the purchaser acquires a
1-10 vehicle for the exclusive purpose of resale; <or>
1-11 (B) a sale in which the purchaser is a lessor
1-12 who acquires the vehicle:
1-13 (i) as all or part of the total
1-14 consideration for the lease of another vehicle; and
1-15 (ii) for the exclusive purpose of resale;
1-16 or
1-17 (C) a sale of a vehicle that is operated under
1-18 and in accordance with Article 6686, Revised Civil Statutes of
1-19 Texas, 1925, as amended.
1-20 SECTION 2. Section 152.002, Tax Code, is amended by adding
1-21 Subsection (d) to read as follows:
1-22 (d) The total consideration paid for a motor vehicle
1-23 purchased by a lessor for subsequent lease does not include the
1-24 value of another motor vehicle taken by the lessor as all or part
2-1 of the consideration for the initial lease of the first motor
2-2 vehicle unless the lessor uses the second vehicle as all or part of
2-3 the total consideration for the purchase of a third vehicle.
2-4 SECTION 3. This Act takes effect October 1, 1995, and
2-5 applies to the lease of a motor vehicle on or after that date. The
2-6 lease of a motor vehicle before the effective date of this Act is
2-7 governed by the law in effect when the motor vehicle was leased,
2-8 and that law is continued in effect for that purpose.
2-9 SECTION 4. The importance of this legislation and the
2-10 crowded condition of the calendars in both houses create an
2-11 emergency and an imperative public necessity that the
2-12 constitutional rule requiring bills to be read on three several
2-13 days in each house be suspended, and this rule is hereby suspended.