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A BILL TO BE ENTITLED
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AN ACT
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relating to a study and possible action regarding the improper |
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avoidance of the use tax due on certain off-road vehicles purchased |
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in other states. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. STUDY REQUIRED. (a) The comptroller of public |
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accounts shall conduct a study of the fiscal effect, to both this |
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state and its motorcycle industry, of the improper avoidance of the |
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use tax due on certain off-road vehicles purchased in other states. |
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(b) The study must include: |
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(1) an evaluation of the provisions of current Texas |
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law, and the improper practices by out of state motorcycle dealers, |
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which allow for the high incidence of improper avoidance; |
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(2) development of an estimate of the total amount of |
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revenues owed but not collected in this state, and the total number |
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of jobs lost in this state, due to the high incidence of improper |
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avoidance and improper competitive practices by out of state |
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motorcycle dealers; |
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(3) an evaluation of the manner in which the laws and |
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enforcement practices of other states avoid this high incidence of |
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improper avoidance in those states; |
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(4) identification of, and pursuit if reasonable, of |
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any potential actions within the comptroller's current authority |
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which could significantly lower the rate of avoidance and protect |
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the Texas motorcycle industry from improper competition from out of |
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state motorcycle dealers; and |
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(5) evaluation of potential changes to current law |
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which could lower the rate of avoidance and protect the Texas |
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motorcycle industry from improper competition from out of state |
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motorcycle dealers, including the potential shift of certain |
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off-road vehicles from the sales and use tax to the motor vehicle |
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tax. |
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SECTION 2. REPORT OF STUDY RESULTS. Not later than December |
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1, 2013, the comptroller of public accounts shall submit a report of |
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the results of the study and any resulting recommendations to the |
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House Committee on Ways and Means and the Senate Committee on |
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Finance. |
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SECTION 3. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2013. |