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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(a)(3), Tax Code, is amended to |
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read as follows: |
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(3) "Dealer" means a person who holds a dealer's |
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general distinguishing number issued by the Texas Department of |
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Motor Vehicles under the authority of Chapter 503, Transportation |
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Code, or who is legally recognized as a motor vehicle dealer |
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pursuant to the law of another state and who complies with the terms |
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of Section 152.063(f). The term does not include: |
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(A) a person who holds a manufacturer's license |
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issued under Chapter 2301, Occupations Code; |
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(B) an entity that is owned or controlled by a |
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person who holds a manufacturer's license issued under Chapter |
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2301, Occupations Code; [or] |
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(C) a dealer whose general distinguishing number |
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issued by the Texas Department of Motor Vehicles under the |
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authority of Chapter 503, Transportation Code, prohibits the dealer |
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from selling a vehicle to any person except a dealer; or |
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(D) a dealer who: |
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(i) does not sell motor vehicles described |
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by Section 152.001(3)(A); |
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(ii) meets either of the following |
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requirements: |
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(a) the total annual sales from the |
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dealer's motor vehicle inventory, less sales to dealers, fleet |
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transactions, and subsequent sales, for the 12-month period |
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corresponding to the preceding tax year are 25 percent or less of |
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the dealer's total revenue from all sources during that period; or |
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(b) the dealer did not sell a motor |
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vehicle to a person other than another dealer during the 12-month |
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period corresponding to the preceding tax year and the dealer |
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estimates that the dealer's total annual sales from the dealer's |
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motor vehicle inventory, less sales to dealers, fleet transactions, |
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and subsequent sales, for the 12-month period corresponding to the |
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current tax year will be 25 percent or less of the dealer's total |
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revenue from all sources during that period; |
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(iii) not later than August 31 of the |
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preceding tax year, filed with the chief appraiser a declaration on |
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a form prescribed by the comptroller stating that the dealer |
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elected not to be treated as a dealer under this section in the |
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current tax year; and |
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(iv) renders the dealer's motor vehicle |
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inventory in the current tax year by filing a rendition with the |
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chief appraiser in the manner provided by Chapter 22. |
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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. |
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