79R7261 MFC-F


By:  Hill                                                         H.B. No. 2392



A BILL TO BE ENTITLED

AN ACT

relating to the property tax situs and rendition requirements for 
motor vehicles located at a place of business of a wholesale motor 
vehicle auction.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 21.02, Tax Code, is amended by adding 
Subsection (d) to read as follows:
	(d)  A motor vehicle does not have taxable situs in a taxing 
unit under Subsection (a)(1) if, on January 1, the vehicle:
		(1)  has been located for less than 60 days at a place 
of business of a person who holds a wholesale motor vehicle auction 
general distinguishing number issued by the Texas Department of 
Transportation under Chapter 503, Transportation Code, for that 
place of business; and
		(2)  is offered for resale.                                            
	SECTION 2.  Section 22.04, Tax Code, is amended by adding 
Subsection (d) to read as follows:
	(d)  This section does not apply to a motor vehicle that on 
January 1 is located at a place of business of a person who holds a 
wholesale motor vehicle auction general distinguishing number 
issued by the Texas Department of Transportation under Chapter 503, 
Transportation Code, for that place of business, and that:
		(1)  has not acquired taxable situs under Section 
21.02(a)(1) in a taxing unit that participates in the appraisal 
district because the vehicle is described by Section 21.02(d);
		(2)  is offered for sale by a dealer who holds a 
dealer's general distinguishing number issued by the Texas 
Department of Transportation under Chapter 503, Transportation 
Code, and whose inventory of motor vehicles is subject to taxation 
in the manner provided by Sections 23.121 and 23.122; or
		(3)  is collateral possessed by a lienholder and 
offered for sale in foreclosure of a security interest.
	SECTION 3.  This Act applies only to ad valorem taxes imposed 
for a tax year beginning on or after January 1, 2006.
	SECTION 4.  This Act takes effect January 1, 2006.