By Averitt H.B. No. 3072
76R7625 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain payments by a retail seller in a retail
1-3 installment transaction involving a motor vehicle.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 348.404, Finance Code, is amended to read
1-6 as follows:
1-7 Sec. 348.404. SELLER'S ACTION FOR INCENTIVE PROGRAM OR TO
1-8 PAY FOR BUYER'S MOTOR VEHICLE [TRADE-IN]. (a) A retail seller may
1-9 pay, promise to pay, or tender cash or another thing of value to
1-10 the manufacturer, distributor, or retail buyer of the product if
1-11 the payment, promise, or tender is made in order to participate in
1-12 a financial incentive program offered by the manufacturer or
1-13 distributor of the vehicle to the buyer.
1-14 (b) A retail seller, in connection with a retail installment
1-15 transaction, may:
1-16 (1) advance money to retire an amount owed against a
1-17 motor vehicle owned by the buyer [used as a trade-in]; and
1-18 (2) finance repayment of that money in a retail
1-19 installment contract.
1-20 (c) A retail seller may pay in cash to the retail buyer any
1-21 portion of the net cash value of a motor vehicle owned by the buyer
1-22 and used as a trade-in in a transaction involving the sale of
1-23 another motor vehicle. In this subsection, "net cash value" means
1-24 the cash value of a motor vehicle after payment of all amounts
2-1 secured by the motor vehicle.
2-2 SECTION 2. Section 152.002(b), Tax Code, is amended to read
2-3 as follows:
2-4 (b) "Total consideration" does not include:
2-5 (1) a cash discount;
2-6 (2) a full cash or credit refund to a customer of the
2-7 sales price of a motor vehicle returned to the seller;
2-8 (3) the amount charged for labor or service rendered
2-9 in installing, applying, remodeling, or repairing the motor vehicle
2-10 sold;
2-11 (4) a financing, carrying, or service charge or
2-12 interest on credit extended on a motor vehicle sold under a
2-13 conditional sale or other deferred payment contract;
2-14 (5) the value of a motor vehicle taken by a seller as
2-15 all or a part of the consideration for sale of another motor
2-16 vehicle, including any cash payment to the buyer under Section
2-17 348.404, Finance Code;
2-18 (6) a charge for transportation of the motor vehicle
2-19 after a sale; or
2-20 (7) motor vehicle inventory tax.
2-21 SECTION 3. The importance of this legislation and the
2-22 crowded condition of the calendars in both houses create an
2-23 emergency and an imperative public necessity that the
2-24 constitutional rule requiring bills to be read on three several
2-25 days in each house be suspended, and this rule is hereby suspended,
2-26 and that this Act take effect and be in force from and after its
2-27 passage, and it is so enacted.
3-1 COMMITTEE AMENDMENT NO. 1
3-2 H.B. 3072 is amended as follows:
3-3 (1) On page 1, line 17, delete all language beginning with
3-4 and including the word "owned" and ending with and including the
3-5 semicolon after the word "[trade in]";
3-6 (2) On page 1, line 17, insert the following after the word
3-7 "vehicle": "used as a trade-in";
3-8 (3) On page 1, line 17, insert the following between the
3-9 word "trade-in" and the word "and": "or a motor vehicle owned by
3-10 the buyer that has been declared a total loss by the buyer's
3-11 insurer;"
3-12 Averitt