By:  Staples                                                      S.B. No. 867


A BILL TO BE ENTITLED

AN ACT

relating to the application of the motor vehicle sales tax 
emissions reduction surcharge on certain recreational vehicles.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 152.0215, Tax Code, is amended by 
amending Subsection (a) and adding Subsection (a-1) to read as 
follows:
	(a)  Except as provided by Subsection (a-1), a [A] surcharge 
is imposed on every retail sale, lease, or use of every on-road 
diesel motor vehicle that is over 14,000 pounds and that is sold, 
leased, or used in this state.  The amount of the surcharge for a 
vehicle of a model year 1996 or earlier is 2.5 percent of the total 
consideration and for a vehicle of a model year 1997 or later, one 
percent of the total consideration.
	(a-1)  The surcharge does not apply to a recreational 
vehicle, as that term is defined by Section 522.004(b), 
Transportation Code, that is not held or used for the production of 
income.
	SECTION 2.  This Act applies only to taxes imposed on or 
after the effective date of this Act.  Taxes imposed before the 
effective date of this Act are governed by the law in effect on the 
date the taxes are imposed, and that law is continued in effect for 
that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.