1-1 By: Armbrister S.B. No. 1234
1-2 (In the Senate - Filed March 10, 1995; March 16, 1995, read
1-3 first time and referred to Committee on Finance; March 20, 1995,
1-4 rereferred to Committee on State Affairs; April 24, 1995, reported
1-5 adversely, with favorable Committee Substitute by the following
1-6 vote: Yeas 9, Nays 1; April 24, 1995, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1234 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to reimbursement of certain fees and taxes paid by a motor
1-11 vehicle rental company; providing a civil penalty.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Chapter 20, Title 132, Revised Statutes, is
1-14 amended by adding Article 9026a to read as follows:
1-15 Art. 9026a. MOTOR VEHICLE RENTAL REIMBURSEMENT CHARGES
1-16 Sec. 1. DEFINITIONS. In this article:
1-17 (1) "Gross rental receipts tax" means the tax imposed
1-18 by Section 152.026, Tax Code.
1-19 (2) "Motor vehicle" means a self-propelled vehicle
1-20 designed to transport persons or property on a public highway or a
1-21 trailer, semitrailer, or house trailer, as those terms are defined
1-22 by the Certificate of Title Act (Article 6687-1, Vernon's Texas
1-23 Civil Statutes).
1-24 (3) "Person" means an individual, firm, corporation,
1-25 or other legal entity.
1-26 (4) "Rental agreement" means a written agreement
1-27 stating the terms and conditions governing the use of a motor
1-28 vehicle provided by a rental company.
1-29 (5) "Rental company" means a person in the business of
1-30 renting motor vehicles.
1-31 (6) "Rental day" means any 24-hour period or any
1-32 portion of a 24-hour period during which a particular motor vehicle
1-33 was rented by a single renter for which the renter was charged any
1-34 amount of rent.
1-35 (7) "Renter" means a person that obtains use of a
1-36 motor vehicle from a rental company under the terms of a rental
1-37 agreement.
1-38 Sec. 2. APPLICATION. (a) This article applies only to the
1-39 rental of a motor vehicle in this state by a rental company
1-40 required to register under Section 152.065, Tax Code.
1-41 (b) This article does not apply to:
1-42 (1) rental of a vehicle for use in transporting
1-43 commercial freight; or
1-44 (2) a rental exempt from the gross rental receipts
1-45 tax.
1-46 Sec. 3. REIMBURSEMENT CHARGE. A rental company may include
1-47 in each rental agreement a charge to reimburse the rental company
1-48 for amounts the rental company paid during the calendar year
1-49 preceding the year of the agreement for title fees, registration
1-50 fees, and property taxes on the rental company's motor vehicle
1-51 rental fleet. The rental company may retain amounts collected
1-52 under this section. If a rental company elects to include the
1-53 reimbursement charge, the charge shall be nondiscriminatory and
1-54 must be collected from all persons entering into rental agreements
1-55 with the rental company except those persons exempted by this
1-56 article.
1-57 Sec. 4. NOTICE OF CHARGE. The reimbursement charge, if any,
1-58 must be:
1-59 (1) listed on the face of the rental agreement above
1-60 the place where the applicable tax is listed; and
1-61 (2) labeled as "Reimbursement for Title, Registration,
1-62 and Personal Property Taxes" or by the abbreviation "Reimb--TRPPT."
1-63 Sec. 5. COMPUTATION OF CHARGE. (a) The amount of the
1-64 reimbursement charge applicable to each rental agreement is the
1-65 amount of personal property taxes, registration fees, and title
1-66 fees paid on the rental company's motor vehicle fleet in this state
1-67 during the calendar year preceding the year of the computation
1-68 divided by the cumulative number of rental days for which the
2-1 rental company rented motor vehicles during that preceding year and
2-2 multiplied by the number of rental days covered by the rental
2-3 agreement.
2-4 (b) A rental company shall make the computation authorized
2-5 by this section before January 15 of the year during which the
2-6 computation applies and begin collecting the computed amount on the
2-7 day after the date of the computation. A rental company which
2-8 fails to make the computation before January 15 may not charge any
2-9 amount under this article on or after January 15 until it makes the
2-10 requisite computation. The amount applicable to a year may not be
2-11 altered after initial computation.
2-12 Sec. 6. DURATION OF COLLECTION. (a) A rental company may
2-13 collect the reimbursement charge from each renter to which the
2-14 charge applies until the earlier of January 15 of the following
2-15 year or the date on which:
2-16 (1) the rental company collects charges totaling the
2-17 amount of personal property taxes, registration fees, and title
2-18 fees paid on the rental company's motor vehicle fleet in this state
2-19 during the preceding calendar year; or
2-20 (2) the computation for the following year takes
2-21 effect.
2-22 (b) After the amount described by Subsection (a)(1) of this
2-23 section is collected, the rental company may not collect the
2-24 reimbursement charge and shall list "$0.00" in the place where the
2-25 reimbursement charge is required to be listed on a rental
2-26 agreement.
2-27 Sec. 7. EXCESSIVE OR DEFICIENT COLLECTION. (a) If a rental
2-28 company collects in reimbursement charges more than the company is
2-29 entitled to collect under this article, the rental company shall
2-30 subtract the amount of the excess from the amount the rental
2-31 company is entitled to collect during the following year.
2-32 (b) If a rental company collects in reimbursement charges
2-33 less than the company is entitled to collect under this article,
2-34 the rental company may not adjust the amount collected during the
2-35 following year or otherwise attempt to collect the deficiency.
2-36 Sec. 8. CHARGE SUBJECT TO TAX. A reimbursement charge is
2-37 subject to the gross rental receipts tax.
2-38 Sec. 9. CIVIL PENALTY. (a) A rental company that violates
2-39 this article is liable to the state for a civil penalty in an
2-40 amount of not less than $500 and not more than $1,000 for each
2-41 violation or each day of a continuing violation.
2-42 (b) The attorney general or a county or district attorney
2-43 may sue to recover the civil penalty for the state, to enjoin a
2-44 violation of this article, or for both the penalty and injunction.
2-45 SECTION 2. This Act takes effect January 1, 1996.
2-46 SECTION 3. The importance of this legislation and the
2-47 crowded condition of the calendars in both houses create an
2-48 emergency and an imperative public necessity that the
2-49 constitutional rule requiring bills to be read on three several
2-50 days in each house be suspended, and this rule is hereby suspended.
2-51 * * * * *