79(3) HB 4 - Engrossed version


                                                                                



By:  Swinford                                                     H.B. No. 4  



A BILL TO BE ENTITLED

AN ACT

relating to motor vehicle sales and use taxes.                                
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 152.002, Tax Code, is amended by adding 
Subsection (f) to read as follows:
	(f)  Notwithstanding Subsection (a), the total consideration 
of a used motor vehicle is the amount on which the tax is computed as 
provided by Section 152.0412.
	SECTION 2.  Section 152.041(a), Tax Code, is amended to read 
as follows:     
	(a)  The tax assessor-collector of the county in which an 
application for registration or for a Texas certificate of title is 
made shall collect taxes imposed by this chapter, subject to 
Section 152.0412, unless another person is required by this chapter 
to collect the taxes.
	SECTION 3.  Subchapter C, Chapter 152, Tax Code, is amended 
by adding Section 152.0412 to read as follows:
	Sec. 152.0412.  STANDARD PRESUMPTIVE VALUE; USE BY TAX 
ASSESSOR-COLLECTOR.  (a)  In this section, "standard presumptive 
value" means the private-party transaction value of a motor 
vehicle, as determined by the Texas Department of Transportation 
based on an appropriate regional guidebook of a nationally 
recognized motor vehicle value guide service, or based on another 
motor vehicle guide publication that the department determines is 
appropriate if a private-party transaction value for the motor 
vehicle is not available from a regional guidebook described by 
this subsection.
	(b)  If the amount paid for a motor vehicle subject to the tax 
imposed by this chapter is equal to or greater than 80 percent of 
the standard presumptive value of the vehicle, a county tax 
assessor-collector shall compute the tax on the amount paid.
	(c)  If the amount paid for a motor vehicle subject to the tax 
imposed by this chapter is less than 80 percent of the standard 
presumptive value of the vehicle, a county tax assessor-collector 
shall compute the tax on the amount that is equal to 80 percent of 
the standard presumptive value of the vehicle, unless the purchaser 
establishes the value of the vehicle as provided by Subsection (d).
	(d)  A county tax assessor-collector shall compute the tax 
imposed by this chapter on the value of a motor vehicle if the value 
is shown on:
		(1)  documentation, including a receipt or invoice, 
provided by the seller to the purchaser of the vehicle, but only if 
the seller is a motor vehicle dealer operating under Subchapter B, 
Chapter 503, Transportation Code; or
		(2)  an appraisal certified by an adjuster licensed 
under Chapter 4101, Insurance Code, or by a motor vehicle dealer 
operating under Subchapter B, Chapter 503, Transportation Code.
	(d-1)  An appraisal described by Subsection (d)(2):                     
		(1)  must be on a form prescribed by the comptroller for 
that purpose; and
		(2)  must be obtained by the purchaser of the vehicle 
not later than the 20th day after the date of purchase.
	(e)  On request, a motor vehicle dealer operating under 
Subchapter B, Chapter 503, Transportation Code, shall provide a 
certified appraisal of the value of a motor vehicle.  The 
comptroller by rule shall establish a fee that a dealer may charge 
for providing the certified appraisal.  The county tax 
assessor-collector shall retain a copy of a certified appraisal 
received under this section for a period prescribed by the 
comptroller.
	(f)  The Texas Department of Transportation shall maintain 
information on the standard presumptive values of motor vehicles as 
part of the department's registration and title system.  The 
department shall update the information at least quarterly each 
calendar year and publish, electronically or otherwise, the updated 
information.  The department may charge a person a reasonable fee 
for access to the publication.
	(g)  This section does not apply to a transaction described 
by Section 152.024 or 152.025.
	(h)  This section does not apply to a motor vehicle disposed 
of in accordance with Chapter 2303, Occupations Code, Chapter 70, 
Property Code, or Chapter 683, Transportation Code.
	(i)  This section does not apply to a motor vehicle that is 
eligible for a specialty license plate under Section 504.501, 
Transportation Code.
	SECTION 4.  (a)  Subchapter A, Chapter 5, Insurance Code, is 
amended by adding Article 5.07-2 to read as follows:
	Art. 5.07-2.  VALUATION OF TOTALED MOTOR VEHICLE.  (a)  For 
purposes of this article, "standard presumptive value" has the 
meaning assigned by Section 152.0412(a), Tax Code.
	(b)  If an insurer determines that a motor vehicle covered 
under an automobile insurance policy issued by the insurer is an 
active or constructive total loss, the insurer shall assign the 
motor vehicle a value that is equal to or greater than the standard 
presumptive value of that vehicle.
	(c)  In settling a liability claim by a third party against 
an insured for property damage claimed by the third party, if the 
insurer determines that the third party's motor vehicle is an 
active or constructive total loss, the insurer shall assign the 
third party's motor vehicle a value that is equal to or greater than 
the standard presumptive value of that vehicle.
	(d)  This article expires April 1, 2007.                                
	(b)  Chapter 1952, Insurance Code, as effective April 1, 
2007, is amended by adding Subchapter H to read as follows:

SUBCHAPTER H.  VALUATION OF TOTALED MOTOR VEHICLE
	Sec. 1952.351.  DEFINITION.  In this subchapter, "standard 
presumptive value" has the meaning assigned by Section 152.0412(a), 
Tax Code.
	Sec. 1952.352.  VALUATION OF TOTALED MOTOR VEHICLE.  (a)  If 
an insurer determines that a motor vehicle covered under an 
automobile insurance policy issued by the insurer is an active or 
constructive total loss, the insurer shall assign the motor vehicle 
a value that is equal to or greater than the standard presumptive 
value of that vehicle.
	(b)  In settling a liability claim by a third party against 
an insured for property damage claimed by the third party, if the 
insurer determines that the third party's motor vehicle is an 
active or constructive total loss, the insurer shall assign the 
third party's motor vehicle a value that is equal to or greater than 
the standard presumptive value of that vehicle.
	SECTION 5.  Not later than October 1, 2006, the Texas 
Department of Transportation shall:
		(1)  establish standard presumptive values for motor 
vehicles as provided by Section 152.0412, Tax Code, as added by this 
Act;
		(2)  modify the department's registration and title 
system as needed to include that information and administer that 
section;
		(3)  make that information available through the system 
to all county tax assessor-collectors; and
		(4)  publish that information and make the published 
information available to an insurer or other requesting person.
	SECTION 6.  The changes in law made by this Act do not affect 
tax liability accruing before the effective date of this Act.  That 
liability continues in effect as if this Act had not been enacted, 
and the former law is continued in effect for the collection of 
taxes due and for civil and criminal enforcement of the liability 
for those taxes.
	SECTION 7.  (a)  Except as provided by Subsection (b) of this 
section, this Act takes effect July 1, 2006, if this Act receives a 
vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for effect on that date, 
this Act takes effect on the first day of the first month that 
begins on or after the 91st day after the last day of the 
legislative session.
	(b)  Section 152.0412, Tax Code, Article 5.07-2, Insurance 
Code, and Subchapter H, Chapter 1952, Insurance Code, as added by 
this Act, take effect October 1, 2006.