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A BILL TO BE ENTITLED
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AN ACT
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relating to imposition of the motor vehicle sales tax on leased |
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motor vehicles. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 152, Tax Code, is amended |
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to read as follows: |
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CHAPTER 152. TAXES ON SALE, RENTAL, LEASE, AND USE OF MOTOR VEHICLES |
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SECTION 2. Section 152.001, Tax Code, is amended by adding |
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Subdivision (7-a) and amending Subdivision (9) to read as follows: |
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(7-a) "Gross lease receipts" means the total amount a |
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person leasing a motor vehicle is required to pay under the lease, |
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but does not include: |
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(A) separately stated charges for insurance; |
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(B) charges for damages to the motor vehicle |
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occurring during the lease period; |
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(C) separately stated charges for motor fuel sold |
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by the owner of the motor vehicle; or |
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(D) discounts. |
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(9) "Owner of a motor vehicle" means: |
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(A) a person named in the certificate of title as |
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the owner of the vehicle; or |
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(B) a person who has the exclusive use of a motor |
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vehicle by reason of a lease or rental and holds the vehicle for |
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re-lease or re-rental. |
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SECTION 3. Section 152.0215(a), Tax Code, is amended to |
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read as follows: |
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(a) Except as provided by Subsection (a-1), a surcharge is |
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imposed on every retail sale, lease, or use of every on-road diesel |
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motor vehicle that is over 14,000 pounds and that is sold, leased, |
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or used in this state. The amount of the surcharge for a vehicle of |
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a model year 1996 or earlier is 2.5 percent of the total |
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consideration or, if the vehicle is leased, 2.5 percent of the gross |
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lease receipts. The amount of the surcharge [and] for a vehicle of a |
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model year 1997 or later is [,] one percent of the total |
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consideration or, if the vehicle is leased, one percent of the gross |
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lease receipts. |
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SECTION 4. Section 152.022, Tax Code, is amended to read as |
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follows: |
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Sec. 152.022. TAX ON MOTOR VEHICLE PURCHASED OR LEASED |
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OUTSIDE THIS STATE. (a) A use tax is imposed on a motor vehicle |
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purchased at retail sale or leased outside this state and used on |
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the public highways of this state by a Texas resident or other |
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person who is domiciled or doing business in this state. |
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(b) The tax rate is 6-1/4 percent of the total consideration |
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or, if the vehicle is leased, 6-1/4 percent of the gross lease |
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receipts. |
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SECTION 5. Section 152.026, Tax Code, is amended to read as |
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follows: |
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Sec. 152.026. TAX ON GROSS RENTAL RECEIPTS AND GROSS LEASE |
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RECEIPTS. (a) A tax is imposed on the gross rental receipts from |
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the rental of a rented motor vehicle. A tax is imposed on the gross |
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lease receipts from the lease of a leased motor vehicle. |
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(b) The tax rate is: |
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(1) 10 percent of the gross rental receipts from the |
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rental of a rented motor vehicle for 30 days or less and 6-1/4 |
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percent of the gross rental receipts from the rental of a rented |
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motor vehicle for longer than 30 days; and |
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(2) 6-1/4 percent of the gross lease receipts from the |
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lease of a leased motor vehicle. |
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(c) Except for a destroyed motor vehicle or an unrecovered |
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stolen motor vehicle, the total amount of gross rental receipts or |
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gross lease receipts tax paid by the owner, as defined by Section |
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152.001(9)(A) [of this code], on a motor vehicle registered under |
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Section 152.061 [of this code] may not be less than an amount equal |
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to the tax that would be imposed by Section 152.021 or 152.022 [of
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this code] but for Subsection (d) [of this section]. |
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(d) The taxes imposed by Sections 152.021 and 152.022 [of
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this code] are not due on a motor vehicle as long as it is registered |
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as a rental or lease vehicle under Section 152.061 [of this code]. |
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SECTION 6. Section 152.045, Tax Code, is amended to read as |
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follows: |
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Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS |
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AND GROSS LEASE RECEIPTS. (a) Except as inconsistent with this |
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chapter and rules adopted under this chapter, an owner of a motor |
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vehicle subject to the tax on gross rental receipts shall report and |
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pay the tax to the comptroller in the same manner as the tax imposed |
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under Chapter 151 [Limited Sales, Excise and Use Tax] is reported |
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and paid by retailers [under Chapter 151 of this code]. |
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(a-1) Except as inconsistent with this chapter and rules |
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adopted under this chapter, an owner of a motor vehicle subject to |
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the tax on gross lease receipts shall collect the gross lease |
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receipts tax from the person leasing the motor vehicle at the time |
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the motor vehicle is leased. The owner shall report and pay the tax |
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to the comptroller in the manner prescribed by rules adopted by the |
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comptroller. |
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(b) The owner shall add the tax to the rental or lease |
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charge, and when added, the tax is: |
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(1) a part of the rental or lease charge; |
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(2) a debt owed to the motor vehicle owner by the |
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person renting or leasing the vehicle; and |
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(3) recoverable at law in the same manner as the rental |
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or lease charge. |
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(c) The comptroller may proceed against a person renting or |
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leasing a motor vehicle for any unpaid gross rental receipts or |
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gross lease receipts tax. |
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SECTION 7. Section 152.046, Tax Code, is amended to read as |
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follows: |
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Sec. 152.046. CHANGE IN TAX STATUS OF MOTOR |
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VEHICLE. (a) If the owner, as defined by Section 152.001(9)(A) |
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[of this code], of a motor vehicle registered as a rental or lease |
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vehicle ceases to use the vehicle for rental or lease, the owner |
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shall report and remit on the next report required to be filed with |
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the comptroller by Section 152.045(a) or (a-1) [of this code] any |
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unpaid portion of gross rental receipts or gross lease receipts tax |
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imposed by Section 152.026 [of this code]. |
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(b) An owner of a motor vehicle on which the motor vehicle |
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sales or use tax has been paid who subsequently uses the vehicle for |
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rental or lease shall collect the gross rental receipts or gross |
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lease receipts tax imposed by this chapter from the person renting |
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or leasing the vehicle. The owner may credit an amount equal to the |
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motor vehicle sales or use tax paid by the owner to the comptroller |
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against the amount of gross rental receipts or gross lease receipts |
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tax due. This credit is not transferable and cannot be applied |
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against tax due and payable from the rental or lease of another |
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vehicle belonging to the same owner. |
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(c) For the purpose of determining the amount of minimum tax |
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due under Section 152.026(c) [of this code] only, an owner of a |
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motor vehicle on which the tax on gross rental receipts or gross |
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lease receipts is imposed may credit against the amount of gross |
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rental receipts or gross lease receipts due an amount equal to the |
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tax on gross rental receipts or gross lease receipts the owner has |
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paid to any other state. This credit is not transferable and cannot |
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be applied against tax due and payable from the rental or lease of |
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another vehicle belonging to the same owner. |
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SECTION 8. Section 152.061, Tax Code, is amended to read as |
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follows: |
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Sec. 152.061. REGISTRATION OF MOTOR VEHICLE PURCHASED FOR |
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RENTAL OR LEASE. (a) An owner of a motor vehicle purchased for |
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rental or lease may furnish the county tax assessor-collector a |
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rental or lease certificate in lieu of the motor vehicle sales or |
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use tax imposed by Sections 152.021 and 152.022 [of this code]. The |
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county tax assessor-collector shall accept the motor vehicle for |
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registration and issue a receipt for the license and title |
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application. |
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(b) A rental or lease certificate may be furnished by: |
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(1) a dealer licensed under Chapter 503, |
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Transportation Code; or |
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(2) the owner if the vehicle is for use in a rental or |
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lease business that rents or leases at least five different motor |
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vehicles within any 12-month period. |
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(c) The rental or lease certificate shall be in a form |
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designated by the comptroller and must contain: |
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(1) the name, address, and signature of the owner; |
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(2) the owner's or dealer's license number or a |
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statement by the owner that the rental or lease business of the |
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owner meets the activity requirements of Subsection (b) [of this
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section]; |
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(3) the motor vehicle identification number; and |
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(4) the amount of total consideration for the motor |
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vehicle and the amount of tax that would be due if the rental or |
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lease certificate had not been furnished. |
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SECTION 9. Section 152.063(b), Tax Code, is amended to read |
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as follows: |
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(b) The owner of a motor vehicle used for rental or lease |
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purposes shall keep for four years after purchase of a motor vehicle |
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records and supporting documents containing the following |
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information on the amount of: |
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(1) total consideration for the motor vehicle; |
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(2) motor vehicle sales or use tax paid on the motor |
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vehicle; |
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(3) gross rental receipts or gross lease receipts |
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received from the rental or lease of the motor vehicle; and |
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(4) gross rental receipts and gross lease receipts tax |
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paid to the comptroller on each motor vehicle used for rental or |
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lease purposes by the owner. |
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SECTION 10. Subchapter D, Chapter 152, Tax Code, is amended |
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by adding Section 152.0638 to read as follows: |
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Sec. 152.0638. REPORT OF REPLACED LEASED VEHICLES. (a) A |
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person who is in the business of leasing motor vehicles shall report |
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quarterly to the comptroller on each motor vehicle: |
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(1) that the person purchased during the preceding |
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quarter that will be used for lease purposes; or |
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(2) that is a replaced motor vehicle as described by |
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Section 152.002(c) or (d). |
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(b) The report required under Subsection (a) must include: |
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(1) the vehicle identification number of the motor |
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vehicle; and |
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(2) proof of the total consideration paid for the |
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purchased vehicle or of the fair market value of the replaced |
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vehicle, as appropriate. |
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SECTION 11. Section 152.066(d), Tax Code, is amended to |
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read as follows: |
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(d) Except in the case of the gross rental receipts tax, |
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interest begins to accrue on delinquent taxes 60 days after the day |
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on which the joint statement or lease was executed. Delinquent |
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taxes on gross rental receipts draw interest beginning 60 days from |
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the due date. |
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SECTION 12. Section 152.084, Tax Code, is amended to read as |
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follows: |
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Sec. 152.084. RENTAL OR LEASE OF MOTOR VEHICLE TO PUBLIC |
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AGENCY. The taxes imposed by this chapter do not apply to the |
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rental or lease of a motor vehicle to a public agency. The tax which |
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would have been remitted on gross rental receipts or gross lease |
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receipts without this exemption shall be deemed to have been |
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remitted for the purpose of calculating the minimum gross rental |
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receipts or gross lease receipts tax imposed by Section 152.026 [of
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this code]. |
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SECTION 13. Section 152.085, Tax Code, is amended to read as |
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follows: |
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Sec. 152.085. RENTAL OR LEASE OF MOTOR VEHICLE FOR PURPOSES |
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OF RE-RENTAL OR RE-LEASE. (a) The taxes imposed by this chapter on |
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the gross rental receipts from the rental of a motor vehicle or on |
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the gross lease receipts from the lease of a motor vehicle do not |
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apply to the rental or lease of a motor vehicle for the purpose of |
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re-rental or re-lease. |
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(b) The minimum gross rental receipts or gross lease |
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receipts tax imposed by Section 152.026 [of this code] remains the |
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obligation of the owner as defined by Section 152.001(9)(A) [of
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this code]. The owner may credit all gross rental receipts or gross |
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lease receipts taxes paid to the comptroller on the re-rental or |
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re-lease of a motor vehicle registered under Section 152.061 [of
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this code] for the purpose of calculating the amount of minimum |
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gross rental receipts or gross lease receipts tax due, as |
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appropriate. |
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(c) A person authorized by Section 152.061 [of this code] to |
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register motor vehicles for rental or lease may issue an exemption |
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certificate to the owner of the motor vehicle. An owner who takes |
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the certificate in good faith is relieved of the burden of proving |
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that the motor vehicle was rented or leased for purposes of |
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re-rental or re-lease. |
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SECTION 14. Section 152.087, Tax Code, is amended to read as |
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follows: |
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Sec. 152.087. FIRE TRUCKS AND EMERGENCY MEDICAL SERVICES |
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VEHICLES. The taxes imposed by this chapter do not apply to the |
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purchase, rental, lease, or use of a fire truck, emergency medical |
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services vehicle as defined by Section 773.003, Health and Safety |
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Code, or other motor vehicle used exclusively for fire-fighting |
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purposes or for emergency medical services when purchased by: |
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(1) a volunteer fire department; |
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(2) a nonprofit emergency medical service provider |
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that receives a federal income tax exemption under Section 501(a), |
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Internal Revenue Code of 1986, as an organization described by |
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Section 501(c)(3), Internal Revenue Code of 1986; or |
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(3) an emergency medical service provider to which |
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Section 502.204, Transportation Code, applies. |
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SECTION 15. Section 152.088, Tax Code, is amended to read as |
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follows: |
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Sec. 152.088. MOTOR VEHICLES USED FOR RELIGIOUS PURPOSES. |
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The taxes imposed by this chapter do not apply to the sale or use of |
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or the receipts from the rental or lease of a motor vehicle that is |
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used for religious purposes. |
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SECTION 16. Section 152.091(c), Tax Code, is amended to |
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read as follows: |
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(c) The taxes imposed by this chapter do not apply to the |
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rental or lease of a farm machine, a trailer, or a semitrailer for |
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use primarily for farming and ranching, including the rearing of |
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poultry, and use in feedlots, or a machine, a trailer, or a |
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semitrailer for use primarily for timber operations. The tax that |
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would have been remitted on gross rental receipts or gross lease |
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receipts without this exemption shall be deemed to have been |
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remitted for the purpose of calculating the minimum gross rental |
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receipts or gross lease receipts imposed by Section 152.026. The |
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exemption provided by this subsection applies only if the owner of |
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the motor vehicle obtains in good faith an exemption certificate |
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from the person to whom the vehicle is being rented or leased. |
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SECTION 17. The heading to Section 152.093, Tax Code, is |
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amended to read as follows: |
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Sec. 152.093. MOTOR VEHICLES SOLD, RENTED, OR LEASED TO |
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CERTAIN LICENSED CHILD-CARE FACILITIES. |
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SECTION 18. Section 152.093(a), Tax Code, is amended to |
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read as follows: |
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(a) The taxes imposed by this chapter do not apply to a motor |
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vehicle: |
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(1) purchased, used, leased, or rented by a qualified |
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residential child-care facility; and |
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(2) intended for use primarily in transporting the |
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children residing in the facility under a state license. |
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SECTION 19. The following are repealed: |
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(1) Section 152.083, Tax Code; and |
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(2) Section 152.091(b), Tax Code. |
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SECTION 20. This Act applies only to a lease entered into on |
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or after the effective date of this Act. A lease entered into |
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before the effective date of this Act is governed by the law in |
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effect on the date the lease was entered into, and that law is |
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continued in effect for that purpose. |
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SECTION 21. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 22. This Act takes effect September 1, 2009. |