By West                                                H.B. No. 587
         76R2264 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting motor vehicles bought solely for the purpose
 1-3     of customization for resale from the motor vehicle sales tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter E, Chapter 152, Tax Code, is amended
 1-6     by adding Section 152.090 to read as follows:
 1-7           Sec. 152.090.  CUSTOMIZATION FOR RESALE.  (a)  The taxes
 1-8     imposed by this chapter do not apply to the sale of a motor vehicle
 1-9     if:
1-10                 (1)  the vehicle is a new motor vehicle purchased from
1-11     a franchised dealer;
1-12                 (2)  the vehicle is purchased with the sole intent of
1-13     customizing the vehicle with added amenities and reselling it;
1-14                 (3)  75 miles or less are accumulated on the vehicle
1-15     between the time of purchase and resale; and
1-16                 (4)  both the purchase and resale of the vehicle occur
1-17     in this state.
1-18           (b)  The comptroller may require a person seeking exemption
1-19     under this section to present information establishing
1-20     qualification for the exemption.
1-21           SECTION 2.  (a)  This Act applies only to the purchase of a
1-22     motor vehicle on or after the effective date of this Act.
1-23           (b)  The change in law made by this Act does not affect taxes
1-24     imposed before the effective date of this Act, and the law in
 2-1     effect before the effective date of this Act is continued in effect
 2-2     for purposes of the liability for and collection of those taxes.
 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 from and after its
 2-9     passage, and it is so enacted.