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A BILL TO BE ENTITLED
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AN ACT
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relating to the applicability of the law governing the ad valorem |
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taxation of a dealer's motor vehicle inventory. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.121, Tax Code, is amended by adding |
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Subsections (f-1) and (f-2) to read as follows: |
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(f-1) A dealer may elect to have the dealer's motor vehicle |
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inventory appraised in the manner provided by Section 23.12, |
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including Subsection (f) of that section, rather than this section |
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if: |
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(1) the total annual sales from the dealer's motor |
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vehicle inventory, less sales to dealers, fleet transactions, and |
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subsequent sales, for the 12-month period corresponding to the |
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preceding tax year are 25 percent or less of the dealer's total |
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revenue from all sources during that period; or |
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(2) the dealer did not sell a motor vehicle to a person |
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other than another dealer during the 12-month period corresponding |
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to the preceding tax year and the dealer estimates that the dealer's |
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total annual sales from the dealer's motor vehicle inventory, less |
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sales to dealers, fleet transactions, and subsequent sales, for the |
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12-month period corresponding to the current tax year will be 25 |
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percent or less of the dealer's total revenue from all sources |
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during that period. |
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(f-2) The Dealer's Motor Vehicle Inventory Declaration form |
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promulgated by the comptroller under Subsection (f) must permit a |
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dealer to make the election described by Subsection (f-1). The |
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election must be made annually. A dealer who makes the election is |
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not subject to Section 23.122 for the tax year for which the |
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election is made. |
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SECTION 2. This Act applies only to the ad valorem taxation |
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of a dealer's motor vehicle inventory for a tax year beginning on or |
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after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2014. |