1-1 By: Ramsay (Senate Sponsor - Bernsen) H.B. No. 3197
1-2 (In the Senate - Received from the House May 3, 1999;
1-3 May 3, 1999, read first time and referred to Committee on Finance;
1-4 May 13, 1999, reported favorably, as amended, by the following
1-5 vote: Yeas 10, Nays 0; May 13, 1999, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Ogden
1-7 Amend H.B. No. 3197 as follows:
1-8 (1) Delete Section 3 of H.B. 3197 and add a new Section 3 to
1-9 read as follows:
1-10 "SECTION 3. Sections 23.128(h) and (i), Tax Code, are
1-11 amended to read as follows:
1-12 "(h) An appropriate taxing unit shall, on its tax bill
1-13 prepared for the owner of a retail manufactured housing inventory,
1-14 separately itemize the taxes imposed on the retail manufactured
1-15 housing inventory. When the tax bill is prepared for a retail
1-16 manufactured housing inventory, the assessor for the taxing unit,
1-17 or an entity, if any, other than the collector, that collects taxes
1-18 on behalf of the taxing unit, shall provide the collector a true
1-19 and correct copy of the tax bill sent to the owner, including taxes
1-20 imposed on the retail manufactured housing inventory. The
1-21 collector shall apply the money in the owner's escrow account to
1-22 the taxes imposed and deliver a tax receipt to the owner. The
1-23 collector shall apply the amount to each appropriate taxing unit in
1-24 proportion to the amount of taxes imposed, and the assessor of each
1-25 taxing unit shall apply the money received from the collector to
1-26 the taxes owed by the owner. No penalties or interest shall be
1-27 assessed against an owner for property taxes which the owner has
1-28 previously paid but which are not delivered to the appropriate
1-29 taxing unit before the date on which such taxes become delinquent.
1-30 "(i) If the amount in the escrow account is not
1-31 sufficient to pay the taxes in full, the collector shall apply the
1-32 money to the taxes and deliver to the owner a tax receipt for the
1-33 partial payment and a tax bill for the amount of the deficiency
1-34 together with a statement that the owner must remit to the
1-35 collector the balance of the total tax due; however, no penalty or
1-36 interest shall be assessed against an owner for that portion of the
1-37 property taxes which represents the amount of the partial payment
1-38 if the amount of the deficiency is not paid before the date the
1-39 deficiency is delinquent."
1-40 (2) Add a new Section 4 to read as follows:
1-41 "Section 4. Sections 1 and 2 of this Act take effect
1-42 January 1, 2000, and apply only to an ad valorem tax year that
1-43 begins on or after that date. Section 3 of this Act takes effect
1-44 September 1, 1999."
1-45 (3) Appropriately renumber the remaining section of H.B. No.
1-46 3197.
1-47 A BILL TO BE ENTITLED
1-48 AN ACT
1-49 relating to the appraisal and ad valorem taxation of retail
1-50 manufactured housing inventory.
1-51 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-52 SECTION 1. Sections 23.127(a), (e), and (h), Tax Code, are
1-53 amended to read as follows:
1-54 (a) In this section:
1-55 (1) "Chief appraiser" means the chief appraiser for
1-56 the appraisal district in which a retailer's retail manufactured
1-57 housing inventory is located.
1-58 (2) "Collector" means the county tax
1-59 assessor-collector for the county in which a retailer's retail
1-60 manufactured housing inventory is located.
1-61 (3) "Declaration" means a retail manufactured housing
1-62 inventory declaration form adopted by the comptroller under this
1-63 section.
2-1 (4) "Department" means the Texas Department of Housing
2-2 and Community Affairs.
2-3 (5) "HUD-code manufactured ["Manufactured] home" has
2-4 [and "manufactured housing" have] the meaning assigned [those
2-5 terms] by Section 3, [the] Texas Manufactured Housing Standards Act
2-6 (Article 5221f, Vernon's Texas Civil Statutes).
2-7 (6) "Manufactured housing" means:
2-8 (A) a HUD-code manufactured home as it would
2-9 customarily be held by a retailer in the normal course of business
2-10 in a retail manufactured housing inventory; or
2-11 (B) a mobile home as it would customarily be
2-12 held by a retailer in the normal course of business in a retail
2-13 manufactured housing inventory.
2-14 (7) "Mobile home" has the meaning assigned by Section
2-15 3, Texas Manufactured Housing Standards Act (Article 5221f,
2-16 Vernon's Texas Civil Statutes).
2-17 (8) [(6)] "Owner" means a retailer who owes current
2-18 year inventory taxes imposed on a retailer's retail manufactured
2-19 housing inventory.
2-20 (9) [(7)] "Retail manufactured housing inventory"
2-21 means all units of manufactured housing [homes] that a retailer
2-22 holds for sale at retail.
2-23 (10) [(8)] "Retailer" has the meaning assigned [that
2-24 term] by Section 3, [the] Texas Manufactured Housing Standards Act
2-25 (Article 5221f, Vernon's Texas Civil Statutes).
2-26 (11) [(9)] "Retailer-financed sale" means the sale at
2-27 retail of a unit of manufactured housing [home] in which the
2-28 retailer finances the purchase of the unit of manufactured housing
2-29 [home], is the sole lender in the transaction, and retains
2-30 exclusively the right to enforce the terms of the agreement that
2-31 evidences the sale.
2-32 (12) [(10)] "Sales price" means the total amount of
2-33 money paid or to be paid to a retailer for the purchase of a unit
2-34 of manufactured housing [home], excluding any amount paid for the
2-35 installation of the unit [home].
2-36 (13) [(11)] "Subsequent sale" means a
2-37 retailer-financed sale of a unit of manufactured housing [home]
2-38 that, at the time of the sale, has been the subject of a
2-39 retailer-financed sale from the same retail manufactured housing
2-40 inventory in the same calendar year.
2-41 (14) [(12)] "Total annual sales" means the total of
2-42 the sales price for each sale from a retail manufactured housing
2-43 inventory in a 12-month period.
2-44 (e) A retailer is presumed to be an owner of a retail
2-45 manufactured housing inventory on January 1 if, in the 12-month
2-46 period ending on December 31 of the immediately preceding year, the
2-47 retailer sold a unit of manufactured housing [home] to a person
2-48 other than a retailer. The presumption created by this subsection
2-49 is not rebutted by the fact that a retailer does not have any units
2-50 of manufactured housing [homes] physically on hand for sale from
2-51 the retail manufactured housing inventory on January 1.
2-52 (h) If a retailer fails to file a declaration as required by
2-53 Subsection (f), or if, on the declaration required by Subsection
2-54 (f) a retailer reports the sale of fewer than two units of
2-55 manufactured housing [homes] in the preceding year, the chief
2-56 appraiser shall report that fact to the department.
2-57 SECTION 2. Sections 23.128(a), (b), (e), (f), and (g), Tax
2-58 Code, are amended to read as follows:
2-59 (a) In this section:
2-60 (1) "Aggregate tax rate" means the combined tax rates
2-61 of all appropriate taxing units authorized by law to impose
2-62 property taxes on a retail manufactured housing inventory.
2-63 (2) "Appropriate taxing unit" means a taxing unit,
2-64 including the county, authorized by law to impose property taxes on
2-65 a retail manufactured housing inventory.
2-66 (3) "Chief appraiser," "collector," "declaration,"
2-67 ["manufactured home,"] "manufactured housing," "owner," "retail
2-68 manufactured housing inventory," "retailer," "sales price,"
2-69 "subsequent sale," and "total annual sales" have the meanings
3-1 assigned [those terms] by Section 23.127.
3-2 (4) "Statement" means the retail manufactured housing
3-3 inventory tax statement filed on a form adopted by the comptroller
3-4 under this section.
3-5 (5) "Unit property tax factor" means a number equal to
3-6 one-twelfth of the preceding year's aggregate ad valorem tax rate
3-7 at the location at which a retail manufactured housing inventory is
3-8 located on January 1 of the current year.
3-9 (b) Except for a unit of manufactured housing [home] sold to
3-10 a retailer or a unit of manufactured housing [home] that is the
3-11 subject of a subsequent sale, a retailer or a person who has agreed
3-12 by contract to pay the retailer's current year property taxes
3-13 imposed on the retailer's manufactured housing inventory shall
3-14 assign a unit property tax to each unit of manufactured housing
3-15 [home] sold from a retail manufactured housing inventory. The unit
3-16 property tax of each unit of manufactured housing [home] is
3-17 determined by multiplying the sales price of the unit [manufactured
3-18 home] by the unit property tax factor. On or before the 10th day
3-19 of each month the retailer shall, together with the statement filed
3-20 by the retailer as provided by this section, deposit with the
3-21 collector an amount equal to the total of the unit property tax
3-22 assigned to all units of manufactured housing [homes] sold from the
3-23 retail manufactured housing inventory in the preceding month to
3-24 which a unit property tax was assigned. The collector shall
3-25 deposit the money to the credit of the retailer's escrow account
3-26 for prepayment of property taxes as provided by this section. An
3-27 escrow account required by this section is used to pay property
3-28 taxes imposed on the retail manufactured housing inventory, and the
3-29 retailer shall fund the escrow account as provided by this
3-30 subsection.
3-31 (e) The comptroller by rule shall adopt a form entitled
3-32 "Retail Manufactured Housing Inventory Tax Statement." A retailer
3-33 shall complete the form with respect to each unit of manufactured
3-34 housing [home] sold. A retailer may not use another form for that
3-35 purpose. The statement shall include:
3-36 (1) a description of the unit of manufactured housing
3-37 [home] sold, including any unique identification or serial number
3-38 affixed to the unit [manufactured home] by the manufacturer;
3-39 (2) the sales price of the unit of manufactured
3-40 housing [home];
3-41 (3) any unit property tax of the unit of manufactured
3-42 housing [home];
3-43 (4) the reason a unit property tax is not assigned if
3-44 that is the case; and
3-45 (5) any other information the comptroller considers
3-46 appropriate.
3-47 (f) On or before the 10th day of each month, a retailer
3-48 shall file with the collector the statement covering the sale of
3-49 each unit of manufactured housing [home] sold by the retailer in
3-50 the preceding month. A retailer shall file a copy of the statement
3-51 with the chief appraiser and retain documentation relating to the
3-52 disposition of each unit of manufactured housing [home] sold. A
3-53 chief appraiser or collector may examine documents held by a
3-54 retailer as required by this subsection in the same manner, and
3-55 subject to the same conditions, as in Section 23.127(g).
3-56 (g) Subsection (f) applies to a retailer regardless of
3-57 whether the retailer owes retail manufactured housing inventory tax
3-58 for the current year. A retailer who does not owe any retail
3-59 manufactured housing inventory tax for the current year because the
3-60 retailer was not in business on January 1 may not assign a unit
3-61 property tax to a unit of manufactured housing [home] sold by the
3-62 retailer or remit money with the statement unless under the terms
3-63 of a contract as provided by Subsection (k).
3-64 SECTION 3. This Act takes effect January 1, 2000, and
3-65 applies only to an ad valorem tax year that begins on or after that
3-66 date.
3-67 SECTION 4. The importance of this legislation and the
3-68 crowded condition of the calendars in both houses create an
3-69 emergency and an imperative public necessity that the
4-1 constitutional rule requiring bills to be read on three several
4-2 days in each house be suspended, and this rule is hereby suspended.
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