By: Armbrister S.B. No. 1234
A BILL TO BE ENTITLED
AN ACT
1-1 relating to reimbursement of certain fees and taxes paid by a motor
1-2 vehicle rental company; providing a civil penalty.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 20, Title 132, Revised Statutes, is
1-5 amended by adding Article 9026a to read as follows:
1-6 Art. 9026a. MOTOR VEHICLE RENTAL REIMBURSEMENT CHARGES
1-7 Sec. 1. DEFINITIONS. In this article:
1-8 (1) "Gross rental receipts tax" means the tax imposed
1-9 by Section 152.026, Tax Code.
1-10 (2) "Motor vehicle" means a self-propelled vehicle
1-11 designed to transport persons or property on a public highway or a
1-12 trailer, semitrailer, or house trailer, as those terms are defined
1-13 by the Certificate of Title Act (Article 6687-1, Vernon's Texas
1-14 Civil Statutes).
1-15 (3) "Person" means an individual, firm, corporation,
1-16 or other legal entity.
1-17 (4) "Rental agreement" means a written agreement
1-18 stating the terms and conditions governing the use of a motor
1-19 vehicle provided by a rental company.
1-20 (5) "Rental company" means a person in the business of
1-21 renting motor vehicles.
1-22 (6) "Rental day" means any 24-hour period or any
1-23 portion of a 24-hour period during which a particular motor vehicle
1-24 was rented by a single renter for which the renter was charged any
2-1 amount of rent.
2-2 (7) "Renter" means a person that obtains use of a
2-3 motor vehicle from a rental company under the terms of a rental
2-4 agreement.
2-5 Sec. 2. APPLICATION. (a) This article applies only to the
2-6 rental of a motor vehicle in this state by a rental company
2-7 required to register under Section 152.065, Tax Code.
2-8 (b) This article does not apply to:
2-9 (1) rental of a vehicle for use in transporting
2-10 commercial freight; or
2-11 (2) a rental exempt from the gross rental receipts
2-12 tax.
2-13 Sec. 3. REIMBURSEMENT CHARGE. A rental company may include
2-14 in each rental agreement a charge to reimburse the rental company
2-15 for amounts the rental company paid during the calendar year
2-16 preceding the year of the agreement for title fees, registration
2-17 fees, and property taxes on the rental company's motor vehicle
2-18 rental fleet. The rental company may retain amounts collected
2-19 under this section. If a rental company elects to include the
2-20 reimbursement charge, the charge shall be nondiscriminatory and
2-21 must be collected from all persons entering into rental agreements
2-22 with the rental company except those persons exempted by this
2-23 article.
2-24 Sec. 4. NOTICE OF CHARGE. The reimbursement charge, if any,
2-25 must be:
2-26 (1) listed on the face of the rental agreement above
2-27 the place where the applicable tax is listed; and
3-1 (2) labeled as "Reimbursement for Title, Registration,
3-2 and Personal Property Taxes" or by the abbreviation "Reimb--TRPPT."
3-3 Sec. 5. COMPUTATION OF CHARGE. (a) The amount of the
3-4 reimbursement charge applicable to each rental agreement is the
3-5 amount of personal property taxes, registration fees, and title
3-6 fees paid on the rental company's motor vehicle fleet in this state
3-7 during the calendar year preceding the year of the computation
3-8 divided by the cumulative number of rental days for which the
3-9 rental company rented motor vehicles during that preceding year and
3-10 multiplied by the number of rental days covered by the rental
3-11 agreement.
3-12 (b) A rental company shall make the computation authorized
3-13 by this section before January 15 of the year during which the
3-14 computation applies and begin collecting the computed amount on the
3-15 day after the date of the computation. A rental company which
3-16 fails to make the computation before January 15 may not charge any
3-17 amount under this article on or after January 15 until it makes the
3-18 requisite computation. The amount applicable to a year may not be
3-19 altered after initial computation.
3-20 Sec. 6. DURATION OF COLLECTION. (a) A rental company may
3-21 collect the reimbursement charge from each renter to which the
3-22 charge applies until the earlier of January 15 of the following
3-23 year or the date on which:
3-24 (1) the rental company collects charges totaling the
3-25 amount of personal property taxes, registration fees, and title
3-26 fees paid on the rental company's motor vehicle fleet in this state
3-27 during the preceding calendar year; or
4-1 (2) the computation for the following year takes
4-2 effect.
4-3 (b) After the amount described by Subsection (a)(1) of this
4-4 section is collected, the rental company may not collect the
4-5 reimbursement charge and shall list "$0.00" in the place where the
4-6 reimbursement charge is required to be listed on a rental
4-7 agreement.
4-8 Sec. 7. EXCESSIVE OR DEFICIENT COLLECTION. (a) If a rental
4-9 company collects in reimbursement charges more than the company is
4-10 entitled to collect under this article, the rental company shall
4-11 subtract the amount of the excess from the amount the rental
4-12 company is entitled to collect during the following year.
4-13 (b) If a rental company collects in reimbursement charges
4-14 less than the company is entitled to collect under this article,
4-15 the rental company may not adjust the amount collected during the
4-16 following year or otherwise attempt to collect the deficiency.
4-17 Sec. 8. CHARGE SUBJECT TO TAX. A reimbursement charge is
4-18 subject to the gross rental receipts tax.
4-19 Sec. 9. CIVIL PENALTY. (a) A rental company that violates
4-20 this article is liable to the state for a civil penalty in an
4-21 amount of not less than $500 and not more than $1,000 for each
4-22 violation or each day of a continuing violation.
4-23 (b) The attorney general or a county or district attorney
4-24 may sue to recover the civil penalty for the state, to enjoin a
4-25 violation of this article, or for both the penalty and injunction.
4-26 SECTION 2. This Act takes effect January 1, 1996.
4-27 SECTION 3. The importance of this legislation and the
5-1 crowded condition of the calendars in both houses create an
5-2 emergency and an imperative public necessity that the
5-3 constitutional rule requiring bills to be read on three several
5-4 days in each house be suspended, and this rule is hereby suspended.