By Armbrister S.B. No. 1234
74R6106 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to reimbursement of certain fees and taxes paid by a motor
1-3 vehicle rental company; providing a civil penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 20, Title 132, Revised Statutes, is
1-6 amended by adding Article 9026a to read as follows:
1-7 Art. 9026a. MOTOR VEHICLE RENTAL REIMBURSEMENT CHARGES
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Gross rental receipts tax" means the tax imposed
1-10 by Section 152.026, Tax Code.
1-11 (2) "Motor vehicle" means a self-propelled vehicle
1-12 designed to transport persons or property on a public highway or a
1-13 trailer, semitrailer, or house trailer, as those terms are defined
1-14 by the Certificate of Title Act (Article 6687-1, Vernon's Texas
1-15 Civil Statutes).
1-16 (3) "Person" means an individual, firm, corporation,
1-17 or other legal entity.
1-18 (4) "Rental agreement" means a written agreement
1-19 stating the terms and conditions governing the use of a motor
1-20 vehicle provided by a rental company.
1-21 (5) "Rental company" means a person in the business of
1-22 renting motor vehicles.
1-23 (6) "Renter" means a person that obtains use of a
1-24 motor vehicle from a rental company under the terms of a rental
2-1 agreement.
2-2 Sec. 2. APPLICATION. (a) This article applies only to the
2-3 rental of a motor vehicle in this state by a rental company
2-4 required to register under Section 152.065, Tax Code.
2-5 (b) This article does not apply to:
2-6 (1) rental of a vehicle for use in transporting
2-7 commercial freight; or
2-8 (2) a rental exempt from the gross rental receipts
2-9 tax.
2-10 Sec. 3. REIMBURSEMENT CHARGE. A rental company shall
2-11 include in each rental agreement a charge to reimburse the rental
2-12 company for amounts the rental company paid during the calendar
2-13 year preceding the year of the agreement for title fees,
2-14 registration fees, and property taxes on the rental company's motor
2-15 vehicle rental fleet. The rental company may retain amounts
2-16 collected under this section.
2-17 Sec. 4. NOTICE OF CHARGE. The reimbursement charge must be:
2-18 (1) listed on the face of the rental agreement above
2-19 the place where the applicable tax is listed; and
2-20 (2) labeled as "Reimbursement for Title, Registration,
2-21 and Personal Property Taxes" or by the abbreviation
2-22 "Reimb--TRPPT."
2-23 Sec. 5. COMPUTATION OF CHARGE. (a) The amount of the
2-24 reimbursement charge applicable to each rental agreement is the
2-25 amount of personal property taxes, registration fees, and title
2-26 fees paid on the rental company's motor vehicle fleet in this state
2-27 during the calendar year preceding the year of the computation
3-1 divided by:
3-2 (1) the number of rental transactions by the rental
3-3 company during that preceding year; or
3-4 (2) the cumulative number of rental transaction days
3-5 for which the rental company rented motor vehicles during that
3-6 preceding year and multiplied by the number of days covered by the
3-7 rental agreement.
3-8 (b) A rental company may use only one of the methods
3-9 prescribed by Subsection (a) for computing all charges.
3-10 (c) A rental company shall make the computation required by
3-11 this section before January 15 of the year during which the
3-12 computation applies and begin collecting the computed amount on the
3-13 day after the date of the computation. The amount applicable to a
3-14 year may not be altered after initial computation.
3-15 Sec. 6. DURATION OF COLLECTION. (a) A rental company shall
3-16 collect the reimbursement charge from each renter to which the
3-17 charge applies until the earlier of the date on which:
3-18 (1) the rental company collects charges totaling the
3-19 amount of personal property taxes, registration fees, and title
3-20 fees paid on the rental company's motor vehicle fleet in this state
3-21 during the preceding calendar year; or
3-22 (2) the computation for the following year takes
3-23 effect.
3-24 (b) After the amount described by Subsection (a)(1) is
3-25 collected, the rental company may not collect the reimbursement
3-26 charge and shall list "$0.00" in the place where the reimbursement
3-27 charge is required to be listed on a rental agreement.
4-1 Sec. 7. EXCESSIVE OR DEFICIENT COLLECTION. (a) If a rental
4-2 company collects in reimbursement charges more than the company is
4-3 entitled to collect under this article, the rental company shall
4-4 subtract the amount of the excess from the amount the rental
4-5 company is entitled to collect during the following year.
4-6 (b) If a rental company collects in reimbursement charges
4-7 less than the company is entitled to collect under this article,
4-8 the rental company may not adjust the amount collected during the
4-9 following year or otherwise attempt to collect the deficiency.
4-10 Sec. 8. CHARGE SUBJECT TO TAX. A reimbursement charge is
4-11 subject to the gross rental receipts tax.
4-12 Sec. 9. CIVIL PENALTY. (a) A rental company that violates
4-13 this article is liable to the state for a civil penalty in an
4-14 amount of not less than $500 and not more than $1,000 for each
4-15 violation or each day of a continuing violation.
4-16 (b) The attorney general or a county or district attorney
4-17 may sue to recover the civil penalty for the state, to enjoin a
4-18 violation of this article, or for both the penalty and injunction.
4-19 SECTION 2. This Act takes effect January 1, 1996.
4-20 SECTION 3. The importance of this legislation and the
4-21 crowded condition of the calendars in both houses create an
4-22 emergency and an imperative public necessity that the
4-23 constitutional rule requiring bills to be read on three several
4-24 days in each house be suspended, and this rule is hereby suspended.