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A BILL TO BE ENTITLED
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AN ACT
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relating to methods and procedures of ad valorem tax valuation of |
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inventory of persons engaged in the business of leasing or renting |
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certain vehicles, machinery, or equipment, and to any collection by |
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those persons of tax escrow payments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. It is the intent of the legislature that the |
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changes in law made by this Act be construed and implemented as an |
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alternative method for valuation and collection of an existing ad |
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valorem tax on property to which the changes apply and not as the |
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imposition of a new tax on the affected property. The legislature |
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further intends that the implementation of the changes in law made |
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by this Act not result in any increase in tax revenue by virtue of |
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the changes or an increase in the tax burden per unit of taxable |
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property of affected parties by virtue of the changes. |
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SECTION 2. Section 23.1241, Tax Code, is amended by adding |
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Subsection (k) to read as follows: |
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(k) This section does not apply to a person who has elected |
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to instead be subject to Sections 23.12 and 23.1243. |
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SECTION 3. Subchapter B, Chapter 23, Tax Code, is amended by |
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adding Section 23.1243 to read as follows: |
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Sec. 23.1243. LEASE OR RENTAL OF CERTAIN VEHICLES, |
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MACHINERY, OR EQUIPMENT. (a) A person who is otherwise subject to |
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Section 23.1241 may elect to instead be subject to this section and |
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Section 23.12 if the person meets the applicability requirements |
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described by this section. |
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(b) In this section, "qualified property" means |
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self-propelled, self-powered, or pull-type equipment, including |
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attachments, farm equipment, or a diesel engine, that weighs at |
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least 1,500 pounds and is intended to be used for agricultural, |
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construction, industrial, maritime, mining, or forestry uses. |
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Other than a vehicle that meets the definition of qualified |
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property under this subsection, the term does not include a motor |
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vehicle that is required to be: |
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(1) titled under Chapter 501, Transportation Code; or |
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(2) registered under Chapter 502, Transportation |
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Code. |
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(c) This section applies only to: |
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(1) a person primarily engaged in the business of |
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leasing or renting qualified property in this state to others; and |
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(2) qualified property owned by the person that: |
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(A) has taxable situs in this state for ad |
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valorem tax purposes; and |
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(B) is subject to a lease or rental agreement |
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having a term of less than one year or to an at-will contract that |
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does not contain a defined term. |
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(d) This section does not apply to an item of qualified |
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property that is operated during the term of the lease or rental |
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agreement solely by the owner of the qualified property or by an |
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employee or agent of the owner. |
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(e) A person who leases or rents qualified property to |
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another person and includes an amount for escrow of ad valorem tax |
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as part of the agreement with the lessee or renter shall clearly |
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state in the lease or rental agreement or invoice covering the |
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transaction the amount and rate of the tax and the amount being |
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escrowed. |
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(f) If an amount remains of any escrow collections in excess |
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of the amount of annual property taxes due on the qualified |
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property, the assessor-collector of taxes for the county in which |
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ad valorem taxes on the property were imposed during the applicable |
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ad valorem tax year shall retain the excess escrow. If the amount |
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of any escrow collections is less than the amount of annual property |
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taxes due on the qualified property, the person who collected the |
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escrow amounts shall pay the additional amount due directly to the |
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tax office not later than February 15 of the tax year following the |
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tax year in which the taxes were imposed. |
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(g) As soon as practicable following receipt of any amount |
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under Subsection (f), the assessor-collector of taxes for the |
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county shall distribute those proceeds to the taxing units that |
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imposed ad valorem taxes on the qualified property in the preceding |
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tax year in proportion to the amount of taxes each taxing unit |
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imposed in that year on the property. |
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SECTION 4. This Act takes effect September 1, 2009. |