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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of motor vehicles to manufacturers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 152.001, Tax Code, is amended to read as |
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follows: |
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Sec. 152.001. DEFINITIONS. In this chapter: |
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(1) "Sale" includes: |
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(A) an installment and credit sale; |
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(B) an exchange of property for property or |
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money; |
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(C) an exchange in which property is transferred |
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but the seller retains title as security for payment of the purchase |
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price; |
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(D) a transaction in which a motor vehicle is |
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transferred to another person without payment of consideration and |
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that does not qualify as a gift under Section 152.025; and |
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(E) any other closed transaction that |
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constitutes a sale. |
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(2) "Retail sale" means a sale of a motor vehicle |
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except: |
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(A) the sale of a new motor vehicle in which the |
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purchaser is a franchised dealer who is authorized by law and by |
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franchise agreement to offer the vehicle for sale as a new motor |
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vehicle and who acquires the vehicle either for the exclusive |
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purpose of sale in the manner provided by law or for purposes |
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allowed under Chapter 503, Transportation Code; |
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(B) the sale of a new motor vehicle in which the |
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purchaser is a person who manufactures, distributes or assembles |
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new motor vehicles and who acquires the vehicle for purposes |
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allowed under Section 503.064, Transportation Code; |
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(C)(B) the sale of a vehicle other than a new |
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motor vehicle in which the purchaser is a dealer who holds a |
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dealer's general distinguishing number issued under Chapter 503, |
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Transportation Code, and who acquires the vehicle either for the |
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exclusive purpose of resale in the manner provided by law or for |
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purposes allowed under Chapter 503, Transportation Code; or |
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(D)(C) the sale to a franchised dealer of a new |
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motor vehicle removed from the franchised dealer's inventory for |
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the purpose of entering into a contract to lease the vehicle to |
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another person if, immediately after executing the lease contract, |
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the franchised dealer transfers title of the vehicle and assigns |
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the lease contract to the lessor of the vehicle. |
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(3) "Motor Vehicle" includes: |
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(A) a self-propelled vehicle designed to |
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transport persons or property on a public highway; |
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(B) a trailer and semitrailer, including a van, |
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flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or |
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converter gear; and |
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(C) a house trailer as defined by Chapter 501, |
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Transportation Code. |
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(4) "Motor Vehicle" does not include: |
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(A) a device moved only by human power; |
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(B) a device used exclusively on stationary rails |
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or tracks; |
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(C) road-building machinery; |
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(D) a mobile office; |
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(E) a vehicle with respect to which the |
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certificate of title has been surrendered in exchange for: |
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(i) a salvage vehicle title issued pursuant |
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to Chapter 501, Transportation Code; |
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(ii) a certificate of authority issued |
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pursuant to Chapter 683, Transportation Code; |
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(iii) a nonrepairable vehicle title issued |
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pursuant to Chapter 501, Transportation Code; |
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(iv) an ownership document issued by |
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another state if the document is comparable to a document issued |
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pursuant to Subparagraph (i), (ii), or (iii); |
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(F) a vehicle that has been declared a total loss |
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by an insurance company pursuant to the settlement or adjustment of |
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a claim; or |
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(G) an oilfield portable unit. |
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(5) "Rental" means: |
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(A) an agreement by the owner of a motor vehicle |
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to give for not longer than 180 days the exclusive use of that |
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vehicle to another for consideration; |
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(B) an agreement by the original manufacturer of |
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a motor vehicle to give exclusive use of the motor vehicle to |
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another for consideration; or |
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(C) an agreement to give exclusive use of a motor |
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vehicle to another for re-rental purposes. |
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(6) "Lease" means an agreement, other than a rental, |
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by an owner of a motor vehicle to give for longer than 180 days |
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exclusive use of the vehicle to another for consideration. |
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(7) "Public agency" means: |
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(A) a department, commission, board, office, |
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institution, or other agency of this state or of a county, city, |
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town, school district, hospital district, water district, or other |
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special district or authority or political subdivision created by |
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or under the constitution or the statutes of this state; or |
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(B) an unincorporated agency or instrumentality |
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of the United States. |
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(8) "Gross rental receipts" means value received or |
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promised as consideration to the owner of a motor vehicle for rental |
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of the vehicle, but does not include: |
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(A) separately stated charges for insurance; |
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(B) charges for damages to the motor vehicle |
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occurring during the rental agreement period; |
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(C) separately stated charges for motor fuel sold |
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by the owner of the motor vehicle; or |
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(D) discounts. |
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(9) "Owner of a motor vehicle" means: |
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(A) a person named in the certificate of title as |
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the owner of the vehicle; or |
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(B) a person who has the exclusive use of a motor |
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vehicle by reason of a rental and holds the vehicle for re-rental. |
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(10) "Orthopedically handicapped person" means a |
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person who because of a physical impairment is unable to operate or |
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reasonably be transported in a motor vehicle that has not been |
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specially modified. |
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(11) "Volunteer fire department" means a company, |
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department, or association whose members receive no or nominal |
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compensation and which is organized for the purpose of answering |
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fire alarms and extinguishing fires or answering fire alarms, |
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extinguishing fires, and providing emergency medical services. |
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(12) "Motor vehicle used for religious purposes" means |
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a motor vehicle that is: |
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(A) designed to carry more than six passengers; |
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(B) sold to, rented to, or used by a church or |
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religious society; |
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(C) used primarily for the purpose of providing |
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transportation to and from a church or religious service or |
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meeting; and |
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(D) not registered as a passenger vehicle and not |
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used primarily for the personal or official needs or duties of a |
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minister. |
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(13) "Farm machine" means a self-propelled motor |
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vehicle specially adapted for use in the production of crops or |
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rearing of livestock, including poultry, and use in feedlots and |
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includes a self-propelled motor vehicle specially adapted for |
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applying plant food materials, agricultural chemicals, or feed for |
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livestock. "Farm machine" does not include any self-propelled motor |
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vehicle specifically designed or specially adapted for the sole |
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purpose of transporting agricultural products, plant food |
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materials, agricultural chemicals, or feed for livestock. |
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(14) "Nonprofit" means: |
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(A) organized as a nonprofit corporation under |
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the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., |
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Vernon's Texas Civil Statutes); or |
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(B) organized and operated in a way that does not |
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result in accrual of distributable profits, realization of private |
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gain resulting from payment of compensation other than reasonable |
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compensation for services rendered by persons who are not members |
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of the organization, or realization of any other form of private |
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gain. |
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(15) "Seller-financed sale" means a retail sale of a |
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motor vehicle by a dealer licensed under Chapter 503, |
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Transportation Code, in which the seller collects all or part of the |
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total consideration in periodic payments and retains a lien on the |
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motor vehicle until all payments have been received. The term does |
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not include a: |
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(A) retail sale of a motor vehicle in which a |
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person other than the seller provides the consideration for the |
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sale and retains a lien on the motor vehicle as collateral; |
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(B) lease; or |
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(C) rental. |
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(16) "Mobile office" means a trailer designed to be |
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used as an office, sales outlet, or other workplace. |
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(17) "Lessor" means a person who acquires title to a |
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new motor vehicle for the purpose of leasing the vehicle to another |
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person. |
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(18) "New motor vehicle" means a motor vehicle that, |
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without regard to mileage, has not been the subject of a retail tax. |
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(19) "Franchised dealer" has the meaning assigned the |
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term by Chapter 503, Transportation Code. |
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(20) "Oilfield portable unit" means a bunkhouse, |
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manufactured home, trailer, or semitrailer that: |
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(A) is not a travel trailer, as defined by |
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Section 502.166(e), Transportation Code; |
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(B) is designed to be used for temporary lodging |
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or as temporary office space; |
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(C) is used exclusively at any oil, gas, water |
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disposal, or injection well site to provide to well site employees, |
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contractors, or other workers sleeping accommodations or temporary |
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work space, including office space; and |
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(D) does not require attachment to a foundation |
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or to real property to be functional. |
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SECTION 2. Section 152.027, Tax Code, is amended to read as |
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follows: |
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Sec. 152.027. TAX ON METAL DEALER PLATES. (a) A use tax is |
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imposed on each person to whom is issued a metal dealer's plate |
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authorized by Chapter 503, Transportation Code or to whom is used a |
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metal manufacturer's plate authorized by Chapter 503, |
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Transportation Code. |
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(b) The tax is $25 for each plate issued. |
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(c) The tax imposed by this section is in lieu of any other |
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tax imposed by this chapter. |
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SECTION 3. This Act takes effect September 1, 2015. |