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A BILL TO BE ENTITLED
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AN ACT
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relating to the prepayment of taxes on heavy equipment that is |
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subject to a lease or rental. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.1242(b), Tax Code, is amended to read |
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as follows: |
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(b) Except for an item of heavy equipment sold to a dealer, |
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an item of heavy equipment included in a fleet transaction, an item |
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of heavy equipment that is the subject of a subsequent sale, or an |
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item of heavy equipment that is subject to a lease or rental, an |
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owner or a person who has agreed by contract to pay the owner's |
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current year property taxes levied against the owner's heavy |
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equipment inventory shall assign a unit property tax to each item of |
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heavy equipment sold from a dealer's heavy equipment inventory. In |
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the case of a lease or rental, the owner shall assign a unit |
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property tax to each item of heavy equipment leased or rented. The |
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unit property tax of each item of heavy equipment is determined by |
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multiplying the sales price of the item or the monthly lease or |
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rental payment received for the item, as applicable, by the unit |
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property tax factor. Except as otherwise provided by this |
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subsection, if [If] the transaction is a lease or rental, the owner |
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shall collect the unit property tax from the lessee or renter at the |
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time the lessee or renter submits payment for the lease or |
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rental. The owner of the equipment shall state the amount of the |
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unit property tax assigned as a separate line item on an |
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invoice. If the item of heavy equipment is leased or rented to the |
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state or a political subdivision of the state, the owner of the |
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equipment may not collect the unit property tax from the lessee or |
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renter and may not include the amount of the unit property tax |
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assigned as a separate line item on an invoice provided to the |
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lessee or renter. On or before the 10th day of each month the owner |
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shall, together with the statement filed by the owner as required by |
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this section, deposit with the collector an amount equal to the |
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total of unit property tax assigned to all items of heavy equipment |
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sold, leased, or rented from the dealer's heavy equipment inventory |
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in the preceding month to which a unit property tax was |
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assigned. The money shall be deposited by the collector to the |
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credit of the owner's escrow account for prepayment of property |
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taxes as provided by this section. An escrow account required by |
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this section is used to pay property taxes levied against the |
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dealer's heavy equipment inventory, and the owner shall fund the |
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escrow account as provided by this subsection. |
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SECTION 2. The change in law made by this Act applies only |
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to the collection of taxes by an owner of heavy equipment from |
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certain lessees or renters of that equipment that become due on or |
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after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2013. |