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A BILL TO BE ENTITLED
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AN ACT
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relating to the collection of motor vehicle sales taxes on |
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seller-financed sales by dealers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 152.047, Tax Code, is amended by adding |
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Subsection (g-1) to read as follows: |
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(g-1) Subsection (g) does not apply to a transaction by a |
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dealer, as defined by Section 503.001, Transportation Code, in |
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which the dealer: |
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(1) sells a purchaser's account to a person in which at |
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least 80 percent of the ownership is identical to the ownership of |
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the dealer; or |
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(2) grants a security interest in a purchaser's |
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account but retains custody and control of the account and the right |
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to receive payments in the absence of a default under the security |
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agreement. |
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SECTION 2. The change in law made by this Act does not |
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affect taxes imposed before the effective date of this Act, and the |
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law in effect before the effective date of this Act is continued in |
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effect for purposes of the liability for and collection of those |
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taxes. |
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SECTION 3. This Act takes effect July 1, 2007, if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2007. |