79R6074 CBH-D

By:  Brown of Kaufman                                             H.B. No. 1627



A BILL TO BE ENTITLED

AN ACT

relating to the presumptive value of a motor vehicle for purposes of 
the imposition of the sales and use tax.
	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 average retail value of a motor vehicle as 
determined by the Texas Department of Transportation, based on a 
nationally recognized motor vehicle industry reporting service.
	(b)  Except as otherwise provided by this section, if the 
amount paid for a motor vehicle subject to the tax imposed by this 
chapter is equal to or greater than 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 the standard presumptive value 
of the vehicle, a county tax assessor-collector shall compute the 
tax on the standard presumptive value unless the purchaser 
establishes the retail 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 retail value of a motor vehicle if:
		(1)  the retail value is shown on an appraisal that is:                
			(A)  certified by an adjuster licensed under 
Chapter 4101, Insurance Code, or by a motor vehicle dealer 
operating under Subchapter B, Chapter 503, Transportation Code;
			(B)  on a form prescribed by the comptroller for 
that purpose; and  
			(C)  obtained by the purchaser of the vehicle not 
later than the 20th day after the date of purchase; or
		(2)  the purchaser presents a receipt or other proof of 
purchase of the motor vehicle that is prepared by the seller of the 
motor vehicle.
	(e)  On request, a motor vehicle dealer operating under 
Subchapter B, Chapter 503, Transportation Code, shall provide a 
certified appraisal of the retail 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.
	(g)  This section does not apply to a transaction described 
by Section 152.024 or 152.025.
	SECTION 4.  Not later than September 1, 2005, 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; and
		(3)  make that information available through the system 
to all county tax assessor-collectors.
	SECTION 5.  (a)  Except as provided by Subsection (b) of this 
section, this Act takes effect immediately if it 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 immediate effect, this Act takes 
effect on the 91st day after the last day of the legislative 
session.
	(b)  Section 152.0412, Tax Code, as added by this Act, takes 
effect September 1, 2005.