79R5267 CBH-D

By:  Anchia                                                       H.B. No. 1156



A BILL TO BE ENTITLED

AN ACT

relating to the rate of the motor vehicle sales and use tax imposed 
on certain new hybrid motor 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)  "City fuel economy rating" means the estimate of 
the average number of miles per gallon of gasoline or conventional 
diesel fuel that will be used in city driving as reported by the 
United States Environmental Protection Agency.
		(21)  "New hybrid motor vehicle" means a new motor 
vehicle that:     
			(A)  complies with the vehicle exhaust standards 
for gasoline-powered passenger cars prescribed under the national 
low emissions vehicle program; and
			(B)  draws propulsion energy from both gasoline or 
conventional diesel fuel and a rechargeable energy storage system.
	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 for a new hybrid motor vehicle is:                    
		(1)  4.69 percent if the new hybrid motor vehicle has a 
city fuel economy rating of at least 15 but less than 30 miles per 
gallon;
		(2)  3.125 percent if the new hybrid motor vehicle has a 
city fuel economy rating of at least 30 but less than 45 miles per 
gallon; or
		(3)  1.56 percent if the new hybrid motor vehicle has a 
city fuel economy rating of at least 45 but less than 60 miles per 
gallon.
	(d)  Subsection (c) and this subsection expire September 1, 
2008.     
	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 is imposed at the appropriate rate prescribed by 
Section 152.021 on [rate is 6 1/4 percent of] the total 
consideration.
	SECTION 6.  Subchapter E, Chapter 152, Tax Code, is amended 
by adding Section 152.090 to read as follows:
	Sec. 152.090.  CERTAIN NEW HYBRID MOTOR VEHICLES.  (a)  The 
taxes imposed by this chapter do not apply to the sale or use of a 
new hybrid motor vehicle if the motor vehicle has a city fuel 
economy rating of at least 60 miles per gallon.
	(b)  This section expires September 1, 2008.                            
	SECTION 7.  The change in law made by this Act does 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 8.  This Act takes effect September 1, 2005.