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78S40338 CBH-D

By:  Burnam                                                       H.B. No. 34 



A BILL TO BE ENTITLED

AN ACT

relating to the rate of the motor vehicle sales and use tax imposed 
on certain vehicles.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 152.001, Tax Code, is amended by adding 
Subdivisions (20) and (21) to read as follows:
		(20)  "Bin" means a set of emissions standards 
applicable to exhaust pollutants measured on the Federal Test 
Procedure (FTP) according to 40 C.F.R. Section 86.1811-04.
		(21)  "Heavy-duty motor vehicle" means a van, pickup 
truck, or sports utility vehicle with a gross vehicle weight rating 
of more than 8,500 pounds.
	SECTION 2.  Section 152.021, Tax Code, is amended by 
amending Subsection (b) and adding Subsections (c) and (d) to read 
as follows:
	(b)  Except as provided by Subsection (c), the [The] tax rate 
is 6 1/4 percent of the total consideration.
	(c)  The tax rate is:                                                   
		(1)  7.25 percent of the total consideration if:                       
			(A)  the motor vehicle  has an emissions standard 
of bin 8 or higher; or
			(B)  the motor vehicle:                                               
				(i)  has a city fuel economy estimate of not 
more than 14 miles per gallon of gasoline or conventional diesel 
fuel as reported by the United States Environmental Protection 
Agency; or
				(ii)  is a heavy-duty motor vehicle that 
will not be used primarily for business purposes; and
		(2)  8.25 percent of the total consideration if the 
motor vehicle is described by Subdivisions (1)(A) and (B).
	(d)  It is presumed that a heavy-duty motor vehicle will not 
be used primarily for business purposes unless the purchaser, 
lessee, or renter files with the seller or owner a sworn statement 
that the purchaser intends to use the motor vehicle primarily for 
business purposes.  The seller or owner must keep the sworn 
statement with the seller's or owner's records as required by 
Section 152.063.
	SECTION 3.  Section 152.022(b), Tax Code, is amended to read 
as follows:     
	(b)  The tax [rate] is imposed at the appropriate rate 
prescribed by Section 152.021 on [6 1/4 percent of] the total 
consideration.
	SECTION 4.  Section 152.026(b), Tax Code, is amended to read 
as follows:     
	(b)  The tax rate is 10 percent of the gross rental receipts 
from the rental of a rented motor vehicle for 30 days or less.  The 
tax on  [and 6 1/4 percent of] the gross rental receipts from the 
rental of a rented motor vehicle for longer than 30 days is imposed 
at the appropriate rate prescribed by Section 152.021.
	SECTION 5.  This Act takes effect September 1, 2004.