1-1 AN ACT
1-2 relating to the exemption from ad valorem taxation of motor
1-3 vehicles leased for personal use.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
1-6 adding Section 11.252 to read as follows:
1-7 Sec. 11.252. MOTOR VEHICLES LEASED FOR PERSONAL USE.
1-8 (a) The owner of a motor vehicle that is subject to a lease is
1-9 entitled to an exemption from taxation of the vehicle if:
1-10 (1) the lessee does not hold the vehicle for the
1-11 production of income; and
1-12 (2) the vehicle is used primarily for activities that
1-13 do not involve the production of income.
1-14 (b) For purposes of this section, a motor vehicle is
1-15 presumed to be used primarily for activities that do not involve
1-16 the production of income if 50 percent or more of the miles the
1-17 motor vehicle is driven in a year are for non-income producing
1-18 purposes.
1-19 (c) The comptroller by rule shall establish exemption
1-20 application requirements and appropriate procedures to determine
1-21 whether a motor vehicle subject to a lease qualifies for an
1-22 exemption under Subsection (a).
1-23 (d) In connection with the requirements and procedures under
1-24 Subsection (c), the comptroller by rule shall adopt a form to be
1-25 completed by the lessee of a motor vehicle for which the owner of
2-1 the vehicle may apply for an exemption under Subsection (a). The
2-2 form shall require the lessee to provide the lessee's name,
2-3 address, and driver's license or personal identification
2-4 certificate number and to certify under oath that the lessee does
2-5 not hold the vehicle for the production of income and that the
2-6 vehicle is used primarily for activities that do not involve the
2-7 production of income. The comptroller shall include on the form a
2-8 notice of the penalties prescribed by Section 37.10, Penal Code,
2-9 for making a false statement on the form.
2-10 (e) The owner of a motor vehicle that is subject to a lease
2-11 shall maintain the form completed by the lessee of the vehicle and
2-12 make the form available for inspection and copying by the chief
2-13 appraiser of the applicable appraisal district at all reasonable
2-14 times. If the owner does not maintain a completed form relating to
2-15 the vehicle, the owner:
2-16 (1) must render the vehicle for taxation in the
2-17 applicable rendition statement or property report filed by the
2-18 owner under Chapter 22; and
2-19 (2) may not file an application for an exemption under
2-20 Subsection (a) for the vehicle.
2-21 (f) The governing body of a municipality by ordinance
2-22 adopted before January 1, 2002, may provide for the taxation of
2-23 leased motor vehicles otherwise exempted under Subsection (a). If
2-24 the governing body of a municipality provides for the taxation of
2-25 leased motor vehicles under this subsection, the exemption provided
2-26 by Subsection (a) does not apply to that municipality.
3-1 (g) If not continued in effect by the legislature, this
3-2 section expires December 31, 2003.
3-3 (h) In this section:
3-4 (1) "Lease" has the meaning assigned by Section
3-5 152.001(6).
3-6 (2) "Motor vehicle" means a passenger car or truck
3-7 with a shipping weight of not more than 9,000 pounds.
3-8 (i) In addition to the requirements of Subsections (c) and
3-9 (d), the comptroller by rule shall prescribe a property report form
3-10 to be completed by the lessor describing the leased motor vehicles
3-11 that the lessor owns. The property report form shall require the
3-12 lessor to list each leased vehicle the lessor owns on January 1, to
3-13 provide the year, make, model, and vehicle identification number of
3-14 each leased vehicle, and to provide the name of the lessee, the
3-15 address at which the vehicle is kept, and an indication of whether
3-16 the lessee has designated the vehicle as not held for the
3-17 production and not used for the production of income.
3-18 (j) The lessor shall provide the chief appraiser with the
3-19 completed property report form adopted by the comptroller in the
3-20 manner provided by Subchapter B, Chapter 22.
3-21 SECTION 2. This Act takes effect January 1, 2002, and
3-22 applies only to ad valorem taxes imposed on a motor vehicle that is
3-23 subject to a lease entered into on or after January 2, 2001.
S.B. No. 248
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 248 passed the Senate on
April 26, 2001, by a viva-voce vote; May 25, 2001, Senate refused
to concur in House amendments and requested appointment of
Conference Committee; May 25, 2001, House granted request of the
Senate; May 27, 2001, Senate adopted Conference Committee Report by
a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 248 passed the House, with
amendments, on May 23, 2001, by a non-record vote; May 25, 2001,
House granted request of the Senate for appointment of Conference
Committee; May 27, 2001, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor