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.