By West                                         H.B. No. 1750

      75R3157 CBH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the imposition of the sales and use tax on certain

 1-3     sales of  leased vehicles.

 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 is a dealer

1-10     who holds a general distinguishing number issued under Chapter 503,

1-11     Transportation Code [pursuant to the terms of Article 6686, Revised

1-12     Statutes], who acquires a vehicle for the exclusive purpose of

1-13     resale; [or]

1-14                       (B)  a sale of a vehicle that is operated under

1-15     and in accordance with  Chapter 503, Transportation Code; or

1-16                       (C)  a sale of a leased vehicle by the lessor to

1-17     the lessee at the termination of the lease  [Article 6686, Revised

1-18     Civil Statutes of Texas, 1925, as amended].

1-19           SECTION 2.  This Act takes effect on the first day of the

1-20     first calendar quarter beginning on or after the earliest date that

1-21     it may take effect  under Section 39, Article III, Texas

1-22     Constitution, and applies only to the sale of a motor vehicle that

1-23     occurs on or after that date.  The sale of a motor vehicle before

1-24     the effective date of this Act is governed by the law in effect

 2-1     when the motor vehicle was sold, and that law is continued in

 2-2     effect for that purpose.

 2-3           SECTION 3.  The importance of this legislation and the

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended,

 2-8     and that this Act take effect and be in force according to its

 2-9     terms, and it is so enacted.