Amend CSSB 935 as follows:
1) In SECTION 1 of the bill, strike Sec. 334.002 in its
entirety (page 1, lines 41 through 46, committee printing) and
replace it with the following:
Sec. 334.002. APPLICATION OF CHAPTER. (a) Except as
provided by Subsection (b), this chapter applies only to:
(1) a county with a population of less than 1.5
million; and
(2) a municipality located in a county described by
Subdivision (1).
(b) This chapter does not apply to a municipality with a
population of more than 500,000 that is situated in a county
bordering the United Mexican States and which has an athletic event
located within the municipality's boundaries.
2) In SECTION 1 of the bill, strike Sec. 335.002 in its
entirety (page 9, lines 60 through 69, committee printing) and
replace it with the following:
Sec. 335.002. APPLICATION OF CHAPTER. (a) Except as
provided by Subsection (b), this chapter applies only to:
(1) a county with a population of less than 1.5
million;
(2) a municipality located in a county described by
Subdivision (1);
(3) a county adjacent to a county described by
Subdivision (1); and
(4) a municipality located in a county described by
Subdivision (3).
(b) This chapter does not apply to a municipality with a
population of more than 500,000 that is situated in a county
bordering the United Mexican States and which has an athletic event
located within the municipality's boundaries.
3) Add a new SECTION 2 of the bill to read as follows:
SECTION 2. Subtitle C, Title 3, Tax Code, is amended by
adding Chapter 326 to read as follows:
CHAPTER 326. MUNICIPAL TAX ON RENTAL OF MOTOR VEHICLE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 326.001. DEFINITIONS. (a) In this chapter:
(1) "Athletic event" means a postseason
intercollegiate athletic football bowl game for which a fee for
admission to one or more sports or athletic events is charged.
(2) "Auto rental tax fund" means the fund established
by a municipality by resolution for the deposit of the tax revenue
collected under this chapter.
(3) "Motor vehicle" means a self-propelled vehicle
designed principally to transport persons or property on a public
roadway and includes a passenger car, van, station wagon, sport
utility vehicle, and truck. The term does not include a:
(A) trailer, semitrailer, house trailer, truck
having a manufacturer's rating of more than one-half ton, or
road-building machine;
(B) device moved only by human power;
(C) device used exclusively on stationary rails
or tracks;
(D) farm machine; or
(E) mobile office.
(4) "Place of business of the owner" means an
established outlet, office, or location operated by the owner of a
motor vehicle or the owner's agent or employee for the purpose of
renting motor vehicles and includes any location at which three or
more rentals are made during a year.
(5) "Rental" means an agreement by the owner of a
motor vehicle to authorize for not longer than 30 days the
exclusive use of that vehicle to another for consideration.
(b) Except as provided by Subsection (a), words used in this
subchapter and defined by Chapter 152, Tax Code, have the meanings
assigned by Chapter 152, Tax Code.
Sec. 326.002. APPLICATION OF CHAPTER. This chapter applies
only to a municipality with a population of more than 500,000 that
is situated in a county bordering the United Mexican States and
which has an athletic event located within the municipality's
boundaries.
SUBCHAPTER B. IMPOSITION OF GROSS RENTAL RECEIPTS TAX BY
MUNICIPALITY
Sec. 326.101. TAX AUTHORIZED. (a) A municipality by
ordinance may impose a tax on the gross rental receipts from the
rental in the municipality of a motor vehicle.
(b) A municipality by ordinance may repeal or decrease the
rate of a tax imposed under Subsection (a).
(c) A municipality may impose a tax under this chapter only
if the tax is approved at an election held under Section 326.102.
Sec. 326.102. ELECTION. (a) An election under this chapter
is called by the adoption of a resolution by the governing body of
a municipality.
(b) The governing body may call the election by a majority
vote of its members.
(c) The ballot at the election held under this section must
be printed to permit voting for or against the proposition:
"Authorizing (insert name of municipality) to
establish an auto rental tax fund and to impose a tax on the gross
rental receipts from the rental of a motor vehicle at the rate of
(insert the maximum rate of the tax) for the purpose of
financing athletic events."
(d) The Election Code governs an election held under this
chapter, except that the uniform election date provisions of
Section 41.001(a), Election Code, do not apply to an election
ordered under this section.
Sec. 326.103. SHORT-TERM RENTAL TAX. (a) The tax
authorized by this chapter is imposed at a rate in increments of
one-eighth of one percent, not to exceed 10 percent, on the gross
rental receipts from the rental in the municipality of a motor
vehicle.
(b) The ballot proposition at the election held to adopt the
tax must specify the maximum rate of the tax to be adopted.
Sec. 326.104. RATE INCREASE. (a) A municipality that has
adopted a tax under this chapter at a rate of less than 10 percent
may by ordinance increase the rate of the tax to a maximum of 10
percent if the increase is approved by a majority of the registered
voters of that municipality voting at an election called and held
for that purpose.
(b) The ballot for an election to increase the rate of the
tax shall be printed to permit voting for or against the
proposition: "The increase of the motor vehicle rental tax for the
purpose of financing athletic events to a maximum rate of
percent (insert new maximum rate not to exceed 10 percent)."
SUBCHAPTER C. USE OF TAX REVENUE
Sec. 326.201. AUTO RENTAL TAX FUND. (a) A municipality
shall establish by resolution a fund known as the auto rental tax
fund.
(b) The municipality shall deposit into the auto rental tax
fund the proceeds of any tax imposed by the municipality under this
chapter.
(c) The municipality may use money in the auto rental tax
fund only to collect the tax imposed by this chapter and to operate
one or more athletic events, including but not limited to paying
the costs of planning, acquiring, establishing, developing,
advertising, promoting, conducting, sponsoring, or otherwise
supporting such an event.
SUBCHAPTER D. COMPUTATION OF TAX
Sec. 326.301. COMPUTATION OF TAX. (a) The owner of a motor
vehicle subject to the tax imposed under this chapter shall collect
the tax for the benefit of the municipality.
(b) The owner shall add the short-term motor vehicle rental
tax imposed by the municipality under this chapter, if applicable,
and the gross rental receipts tax imposed by Chapter 152, Tax Code,
to the rental charge, and the sum of the taxes is a part of the
rental charge, is a debt owed to the motor vehicle owner by the
person renting the vehicle, and is recoverable at law in the same
manner as the rental charge.
Sec. 326.302. CONSUMMATION OF RENTAL. A rental of a motor
vehicle occurs in the municipality in which transfer of possession
of the motor vehicle occurs.
Sec. 326.303. SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX.
The tax authorized by this chapter does not apply to the gross
receipts from the rental of a motor vehicle unless the tax imposed
by Chapter 152, Tax Code, also applies to the rental.
Sec. 326.304. STATE EXEMPTIONS APPLICABLE. The exemptions
provided by Subchapter E, Chapter 152, Tax Code, apply to the tax
authorized by this chapter.
Sec. 326.305. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
gross receipts of an owner of a motor vehicle from the rental of
the motor vehicle are presumed to be subject to the tax imposed by
this chapter, except for gross receipts for which the owner has
accepted in good faith a properly completed exemption certificate.
SUBCHAPTER E. ADMINISTRATION OF TAX
Sec. 326.401. RECORDS. (a) The owner of a motor vehicle
used for rental purposes shall keep for four years records and
supporting documents containing the following information on the
amount of:
(1) gross rental receipts received from the rental of
the motor vehicle; and
(2) the tax imposed under this chapter and paid to the
municipality on each motor vehicle used for rental purposes by the
owner.
(b) Mileage records are not required.
Sec. 326.402. FAILURE TO KEEP RECORDS. (a) An owner of a
motor vehicle commits an offense if the owner fails to make and
retain complete records for the four-year period required by
Section 326.401.
(b) An offense under this section is a misdemeanor
punishable by a fine of not less than $25 or more than $500.
Sec. 326.403. EFFECTIVE DATE OF TAX. A tax imposed under
this chapter or a change in the tax rate takes effect on the date
prescribed by the ordinance imposing the tax or changing the rate.
Sec. 326.404. TAX COLLECTION; PENALTY. (a) The owner of a
motor vehicle required to collect the tax imposed under this
chapter shall report and send the taxes collected to the
municipality as provided by the ordinance imposing the tax.
(b) A municipality by ordinance may prescribe penalties,
including interest charges, for failure to keep records required by
the municipality, to report when required, or to pay the tax when
due.
(c) The attorney acting for the municipality may bring suit
against a person who fails to collect a tax under this chapter and
to pay it over to the municipality as required.
Sec. 326.405. COLLECTION PROCEDURES ON PURCHASE OF MOTOR
VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle
rental business that makes rentals subject to the tax imposed by
this chapter sells the business, the successor to the seller or the
seller's assignee shall withhold an amount of the purchase price
sufficient to pay the amount of tax due until the seller provides a
receipt by a person designated by the municipality to provide the
receipt showing that the amount has been paid or a certificate
showing that no tax is due.
(b) The purchaser of a motor vehicle rental business who
fails to withhold an amount of the purchase price as required by
this section is liable for the amount required to be withheld to
the extent of the value of the purchase price.
(c) The purchaser of a motor vehicle rental business may
request that the person designated by the municipality to provide a
receipt under Subsection (a) issue a certificate stating that no
tax is due or issue a statement of the amount required to be paid
before a certificate may be issued. The person designated by the
municipality shall issue the certificate or statement not later
than the 60th day after the date the person receives the request.
(d) If the person designated by the municipality to provide
a receipt under Subsection (a) fails to issue the certificate or
statement within the period provided by Subsection (c), the
purchaser is released from the obligation to withhold the purchase
price or pay the amount due.
Sec. 326.406. REIMBURSEMENT FOR TAX COLLECTION EXPENSES.
(a) A municipality by ordinance or a county by order may permit a
person who is required to collect a tax under this subchapter to
retain a percentage of the amount collected and required to be
reported as reimbursement to the person for the costs of collecting
the tax.
(b) A municipality or county may provide that the person may
retain the amount authorized by Subsection (a) only if the person
pays the tax and files reports as required by the municipality or
county.
4) Renumber the remaining SECTION accordingly.