By: Guillen H.B. No. 151

A BILL TO BE ENTITLED

AN ACT

relating to authorizing a credit representing motor fuels taxes against, and imposing, a mileage tax and to the use of revenue from that tax; providing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. This Act may be cited as the Good Roads Interchange Act.

SECTION 2. Subtitle E, Title 2, Tax Code, is amended by adding Chapter 163 to read as follows:

CHAPTER 163. TAX EXCHANGE

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 163.001. GENERAL DEFINITIONS. In this chapter:

(1) "Combined fuel economy estimate" means an estimate of the average number of miles traveled by a motor vehicle per gallon of fuel consumed.

(2) "Compulsory inspection" means an inspection of a motor vehicle required by Chapter 548, Transportation Code.

(3) "Credit representing motor fuels taxes" means the amount of the credit computed under Section 163.053 and subtracted under Section 163.052.

(4) "Department" means the Texas Department of Transportation.

(5) "Motor vehicle" has the meaning assigned by Section 541.201, Transportation Code.

Sec. 163.002. TAX PERIOD DEFINED. (a) Except as provided by Subsection (b), "tax period" for purposes of the tax imposed by this chapter means the period beginning immediately after a compulsory inspection is completed and a passing vehicle inspection report is issued and ending on the subsequent compulsory inspection of that vehicle at which a passing vehicle inspection report is issued.

(b) For a motor vehicle that is sold in this state after a compulsory inspection at which a passing vehicle inspection report is issued, "tax period" for purposes of the tax imposed by this chapter means:

(1) with respect to the seller, the period beginning with the completion of the compulsory inspection and issuance of the passing vehicle inspection report and ending on the earlier of:

(A) the signing by the buyer and seller of the odometer disclosure statement required by Section 501.072, Transportation Code; or

(B) the date an application for certificate of title for the vehicle is made; and

(2) with respect to the buyer, the period beginning on the earlier of the signing by the buyer and seller of the odometer disclosure statement or the date an application for certificate of title for the vehicle is made and ending on the subsequent compulsory inspection of the vehicle and issuance of a passing vehicle inspection report.

SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX

Sec. 163.051. TAX IMPOSED ON MILES TRAVELED; EXEMPTION. (a) Except as provided by Subsection (b), a tax is imposed on the number of miles traveled during a tax period by a motor vehicle subject to inspection under Subchapter B or D, Chapter 548, Transportation Code.

(b) If the number of miles traveled during a tax period by a motor vehicle described by Subsection (a) is less than 5,000, the miles traveled by that motor vehicle during that tax period are exempt from the tax imposed by this chapter.

Sec. 163.052. AMOUNT OF TAX. (a) Except as provided by Subsection (b), the tax imposed by this chapter is equal to the difference between the following, rounded to the nearest whole dollar:

(1) the number of miles traveled during the tax period multiplied by one cent; and

(2) the credit representing motor fuels taxes.

(b) The comptroller shall determine and specify by rule the minimum amount of tax imposed under this chapter that would exceed the total costs of collecting that amount. The tax imposed by this chapter is considered to be zero if the result of the computation under Subsection (a) is less than the minimum amount specified.

Sec. 163.053. CREDIT REPRESENTING MOTOR FUELS TAXES: COMPUTATION. (a) For purposes of determining the amount of tax imposed by this chapter under Section 163.052, the credit representing motor fuels taxes is equal to the product of:

(1) 0.15; and

(2) the number of miles traveled during the tax period divided by the combined fuel economy estimate for the year, make, and model of the motor vehicle.

(b) The department shall adopt rules specifying the combined fuel economy estimate for each year, make, and model of motor vehicle for purposes of this section.

Sec. 163.054. DETERMINATION OF NUMBER OF MILES TRAVELED. (a) The inspection station or inspector conducting a compulsory inspection of a motor vehicle and issuing a passing vehicle inspection report shall record the vehicle's odometer reading at the time of the inspection and report that reading to the department in the form and manner specified by department rule.

(b) A county assessor-collector who receives an application for certificate of title under Section 501.023, Transportation Code, shall report to the department in the form and manner specified by department rule the odometer reading recorded on the application and any accompanying odometer disclosure statement.

(c) Except as provided by Subsection (d), the number of miles traveled by a motor vehicle during a tax period is equal to the difference between the vehicle's odometer reading recorded by the inspection station or inspector conducting a compulsory inspection at the end of the period and the vehicle's odometer reading recorded by the inspection station or inspector conducting a compulsory inspection at the beginning of the period.

(d) If a motor vehicle is sold in this state after a compulsory inspection at which a passing vehicle inspection report is issued, the number of miles traveled by the vehicle during the tax period is:

(1) for the seller, equal to the difference between:

(A) the vehicle's odometer reading recorded on the application for certificate of title under Section 501.023, Transportation Code, and any accompanying odometer disclosure statement; and

(B) the vehicle's odometer reading recorded by the inspection station or inspector conducting a compulsory inspection at the beginning of the period; and

(2) for the buyer, equal to the difference between:

(A) the odometer reading recorded at the first compulsory inspection of the vehicle conducted after the date of sale; and

(B) the vehicle's odometer reading recorded on the application for certificate of title under Section 501.023, Transportation Code, and any accompanying odometer disclosure statement.

Sec. 163.055. PAYMENT OF TAX. (a) The person in whose name a motor vehicle is registered during the applicable tax period shall pay the tax imposed by this chapter.

(b) Not later than the 25th day of each month, the department shall compute the amount of tax due from a person liable for the tax using the information reported during the preceding month to the department as required by Section 163.054. The department shall send written notice of the amount of tax due by first class mail to the person liable for the tax at the address for the person as shown, or as previously shown if the person is the former owner of the motor vehicle, in the vehicle registration records of the Texas Department of Motor Vehicles. The Texas Department of Motor Vehicles shall provide to the department the information necessary to implement this subsection.

(c) The notice under Subsection (b) must specify:

(1) a date set by the comptroller as authorized by Section 111.051 by which the person liable for the tax may pay in a lump sum the amount due, minus the lump sum payment discount authorized by Section 163.056; and

(2) the dates by which portions of the amount due must be paid under a monthly payment plan established by comptroller rule, with the final payment due not later than the 30th day before the first day of the month during which the motor vehicle with respect to which the tax is due will be required to undergo a compulsory inspection under Chapter 548, Transportation Code.

(d) The person liable for the tax shall send each tax payment to the department.

(e) Tax payments not made on or before the dates prescribed by the monthly payment plan under Subsection (c)(2) are considered delinquent.

Sec. 163.056. DISCOUNT FOR LUMP SUM PAYMENT. (a) A person who pays the tax under this chapter in a lump sum on or before the date specified in the notice as provided by Section 163.055(c)(1) may subtract a percentage of the amount due as specified by comptroller rule as a lump sum payment discount.

(b) The comptroller by rule shall establish the percentage discount applicable under Subsection (a). In determining the amount of the discount, the comptroller shall consider time value of money factors.

SUBCHAPTER C. PENALTIES

Sec. 163.101. INTEREST ON DELINQUENT TAX. A tax imposed by this chapter that is delinquent draws interest as provided by Section 111.060.

Sec. 163.102. PENALTY; DATABASE OF DELINQUENT TAXPAYERS. (a) A person who is liable for the tax imposed by this chapter and who does not pay the tax when due may not receive a passing vehicle inspection report under Chapter 548, Transportation Code, for any motor vehicle registered in the person's name.

(b) The department shall maintain a database of persons who owe delinquent taxes imposed under this chapter and make that information available to inspection stations and inspectors conducting compulsory inspections. An inspection station or inspector shall, before issuing a passing vehicle inspection report following a compulsory inspection of a motor vehicle, determine whether the person in whose name the vehicle is registered owes delinquent taxes imposed under this chapter. The inspection station or inspector may not issue a passing vehicle inspection report for a motor vehicle the registered owner of which owes delinquent taxes.

SUBCHAPTER D. REMITTANCE AND DISPOSITION OF REVENUE

Sec. 163.151. REMITTANCE. Not later than the 25th day of each month, the department shall remit to the comptroller the tax payments received under this chapter during the preceding calendar month.

Sec. 163.152. DISPOSITION AND USE OF REVENUE. (a) The comptroller shall establish a road construction account in the state highway fund and shall deposit the revenue from the tax imposed by this chapter to the credit of that account.

(b) Money in the road construction account may be appropriated only for the purpose of maintaining public roadways in this state.

SECTION 3. Not later than December 31, 2015, the comptroller of public accounts and the Texas Department of Transportation shall adopt rules necessary to implement Chapter 163, Tax Code, as added by this Act.

SECTION 4. (a) Beginning January 1, 2016:

(1) an inspection station or inspector shall begin reporting the information required by Section 163.054(a), Tax Code, as added by this Act, for each compulsory inspection required by Chapter 548, Transportation Code, that is conducted by the inspection station or inspector; and

(2) a county assessor-collector shall begin reporting the information required by Section 163.054(b), Tax Code, as added by this Act, for each application for certificate of title under Section 501.023, Transportation Code, the county assessor-collector receives.

(b) For purposes of the tax imposed by Chapter 163, Tax Code, as added by this Act, the initial tax period with respect to a motor vehicle begins on the earliest of:

(1) the completion of the first compulsory inspection required by Chapter 548, Transportation Code, and issuance of a passing vehicle inspection report that occurs on or after January 1, 2016;

(2) the first signing by the buyer and seller of the motor vehicle of the odometer disclosure statement required by Section 501.072, Transportation Code, that occurs on or after January 1, 2016; or

(3) the first application for certificate of title for the motor vehicle that is made on or after January 1, 2016.

SECTION 5. This Act takes effect September 1, 2015.