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A BILL TO BE ENTITLED
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AN ACT
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relating to the date for prepayment of taxes on a dealer's heavy |
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equipment inventory. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 23.1242(b) and (f), Tax Code, are |
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amended to read 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. If the transaction is a lease or rental, the |
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owner shall collect the unit property tax from the lessee or renter |
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at the 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. On or before the 20th [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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(f) On or before the 20th [10th] day of each month, a dealer |
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shall file with the collector the statement covering the sale, |
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lease, or rental of each item of heavy equipment sold, leased, or |
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rented by the dealer in the preceding month. On or before the 20th |
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[10th] day of a month following a month in which a dealer does not |
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sell, lease, or rent an item of heavy equipment, the dealer must |
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file the statement with the collector and indicate that no sales, |
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leases, or rentals were made in the prior month. A dealer shall |
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file a copy of the statement with the chief appraiser and retain |
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documentation relating to the disposition of each item of heavy |
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equipment sold and the lease or rental of each item of heavy |
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equipment. A chief appraiser or collector may examine documents |
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held by a dealer as provided by this subsection in the same manner, |
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and subject to the same conditions, as provided by Section |
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23.1241(g). |
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SECTION 2. The change in law made by this Act applies to a |
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dealer's heavy equipment inventory tax statement required to be |
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filed on or after the effective date of this Act. A dealer's heavy |
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equipment inventory tax statement required to be filed before the |
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effective date of this Act is governed by the law in effect on the |
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date the statement was required to be filed, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |