79S30479 CBH-D
By: Burnam H.B. No. 64
A BILL TO BE ENTITLED
AN ACT
relating to the imposition of the motor vehicle sales and use tax on
motor vehicles based on the amounts of emissions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 201, Transportation Code, is amended by
adding Subchapter P to read as follows:
SUBCHAPTER P. MOTOR VEHICLE GREENHOUSE GAS EMISSIONS
Sec. 201.981. MOTOR VEHICLE GREENHOUSE GAS EMISSIONS
CLASSIFICATIONS. (a) The commission by rule shall adopt
greenhouse gas emissions classifications for motor vehicles sold in
this state or brought into this state and subject to taxation under
Chapter 152, Tax Code. The classifications adopted by the
commission must specify which motor vehicles are considered to
have:
(1) very high greenhouse gas emissions;
(2) high greenhouse gas emissions;
(3) average greenhouse gas emissions;
(4) fair greenhouse gas emissions; and
(5) low greenhouse gas emissions.
(b) The initial classifications adopted by the commission
must provide that:
(1) to be classified as having very high greenhouse
gas emissions, a motor vehicle must emit more than 1.12 pounds of
carbon dioxide per mile;
(2) to be classified as having high greenhouse gas
emissions, a motor vehicle must emit more than one pound of carbon
dioxide per mile, but not more than 1.12 pounds per mile;
(3) to be classified as having average greenhouse gas
emissions, a motor vehicle must emit more than .82 pounds of carbon
dioxide per mile, but not more than one pound per mile;
(4) to be classified as having fair greenhouse gas
emissions, a motor vehicle must emit .75 pounds or more of carbon
dioxide per mile, but not more than .82 pounds per mile;
(5) to be classified as having low greenhouse gas
emissions, a motor vehicle must emit less than .75 pounds of carbon
dioxide per mile.
(c) The commission shall revise the classifications at
least every three years. In revising the classifications under this
section, the commission shall consider greenhouse gas emissions for
motor vehicles that were purchased in this state during the
preceding year, divided into quintiles.
(d) The department shall require a franchised motor vehicle
dealer, as that term is defined by Section 503.001, to inform
customers of how:
(1) each vehicle is classified under this section and
taxed under Chapter 152, Tax Code; and
(2) the department determines the classifications,
such as by ranking vehicle emissions information for this state.
SECTION 2. Section 152.021, Tax Code, is amended by
amending Subsection (b) and adding Subsection (c) 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) 10.25 percent of the total consideration if the
motor vehicle is a new motor vehicle that has very high greenhouse
gas emissions, as determined by the Texas Department of
Transportation under Section 201.981, Transportation Code;
(2) 8.25 percent of the total consideration if the
motor vehicle is a new motor vehicle that has high greenhouse gas
emissions, as determined by the Texas Department of Transportation
under Section 201.981, Transportation Code;
(3) 6.25 percent of the total consideration if the
motor vehicle is a new motor vehicle that has average greenhouse gas
emissions, as determined by the Texas Department of Transportation
under Section 201.981, Transportation Code;
(4) 4.25 percent of the total consideration if the
motor vehicle is a new motor vehicle that has fair greenhouse gas
emissions, as determined by the Texas Department of Transportation
under Section 201.981, Transportation Code; and
(5) 2.25 percent of the total consideration if the
motor vehicle is a new motor vehicle that has low greenhouse gas
emissions, as determined by the Texas Department of Transportation
under Section 201.981, Transportation Code.
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. Section 152.028(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 6. Subchapter G, Chapter 152, Tax Code, is amended
by adding Section 152.1225 to read as follows:
Sec. 152.1225. ALLOCATION OF CERTAIN REVENUE TO THE
FOUNDATION SCHOOL FUND. (a) Notwithstanding Section 152.122, for
each state fiscal year, the comptroller shall deposit to the credit
of the foundation school fund the amount of increased taxes
collected under this chapter attributable to the revision of the
tax rates prescribed by Section 152.021 by the 79th Legislature,
3rd Called Session, 2006, to reflect the greenhouse gas emissions
of motor vehicles.
(b) If the amount under Subsection (a) is less than zero,
the comptroller shall consider the amount to be zero.
SECTION 7. (a) Except as provided by Subsection (c) of
this section, 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) Not later than September 1, 2006, the Texas
Transportation Commission by rule shall adopt the initial motor
vehicle greenhouse gas emissions classifications required by
Section 201.981, Transportation Code, as added by this Act.
(c) Sections 152.021, 152.022, 152.026, and 152.028, Tax
Code, as amended by this Act, and Section 152.1225, Tax Code, as
added by this Act, take effect October 1, 2006.