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A BILL TO BE ENTITLED
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AN ACT
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relating to imposing a local fee on the sale or lease of a new luxury |
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motor vehicle in certain areas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 3, Tax Code, is amended by |
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adding Chapter 328 to read as follows: |
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CHAPTER 328. FEE ON SALE OR LEASE OF NEW LUXURY MOTOR VEHICLE IN |
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CERTAIN AREAS |
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Sec. 328.001. DEFINITIONS. (a) In this chapter: |
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(1) "Dealership" has the meaning assigned by Section |
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2301.002, Occupations Code. |
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(2) "Gross sale or lease price" means: |
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(A) the price at which a new luxury motor vehicle |
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and any accessories attached on or before sale are offered for sale, |
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before any discount or trade-in; and |
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(B) the total amount to be paid under a lease |
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agreement for a new luxury motor vehicle, before any discount or |
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trade-in. |
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(3) "Lease" means an agreement, other than a rental, |
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by a franchised dealer to give for longer than 180 days exclusive |
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use of a new luxury motor vehicle to another for consideration. |
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(4) "New luxury motor vehicle" means a new motor |
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vehicle that has a gross sale or lease price of at least $55,000. |
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(5) "Qualifying municipality" means a municipality |
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located in: |
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(A) a county described by Section 352.002(a)(11) |
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or (18); or |
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(B) a county that borders at least two counties |
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described by Section 352.002(a)(11). |
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(b) Except to the extent of a conflict, words used in this |
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chapter and defined by Chapter 152 have the meanings assigned by |
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Chapter 152. |
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Sec. 328.002. FEE IMPOSED; AMOUNT. (a) A fee is imposed on |
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each retail sale or lease of a new luxury motor vehicle by a |
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franchised dealer at a dealership in a qualifying municipality or |
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the extraterritorial jurisdiction of that municipality. |
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(b) The amount of the fee is equal to one percent of the |
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gross sale or lease price of the new luxury motor vehicle. |
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Sec. 328.003. APPLICABILITY OF FEE. (a) The fee authorized |
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by this chapter on the sale of a new luxury motor vehicle does not |
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apply to the sale of a new luxury motor vehicle unless the state tax |
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imposed under Chapter 152 also applies. |
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(b) The fee authorized by this chapter on the lease of a new |
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luxury motor vehicle applies to the lease of a new luxury motor |
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vehicle in each situation in which the transaction is not |
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considered a sale for purposes of the imposition of the state tax |
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under Chapter 152. |
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(c) A sale or lease of a motor vehicle that is exempted from |
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the state tax imposed under Chapter 152 by Subchapter E of that |
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chapter is exempt from the fee imposed by this chapter. |
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Sec. 328.004. COLLECTION OF FEE. (a) Each franchised |
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dealer that sells or leases a new luxury motor vehicle at a |
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dealership in a qualifying municipality or the extraterritorial |
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jurisdiction of that municipality shall collect the fee for the |
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benefit of the municipality in which the dealership is located. |
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(b) If the dealership at which the sale or lease occurred is |
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located in a qualifying municipality or in the extraterritorial |
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jurisdiction of that municipality, the franchised dealer shall |
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remit the fee to that municipality as provided by that |
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municipality. |
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(c) The franchised dealer shall add the fee imposed by this |
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chapter and any tax imposed under Chapter 152 to the sale or lease |
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price, and when the fee and taxes are added the total amount is a |
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debt owed to the franchised dealer by the purchaser or lessee until |
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paid. If the total amount is not paid, the unpaid amount is |
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recoverable at law in the same manner the original sale or lease |
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price may be recovered. |
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(d) A municipality to which a franchised dealer is required |
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to remit fees under this chapter shall by ordinance prescribe |
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recordkeeping, reporting, and payment requirements and penalties, |
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including interest charges, for failure to keep records required by |
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the municipality, to report when required, or to pay the fee when |
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due. The attorney acting for the municipality may bring suit |
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against a franchised dealer who fails to collect a fee under this |
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chapter and to pay it over to the municipality as required. |
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(e) A municipality by ordinance may permit a franchised |
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dealer who is required to collect a fee under this chapter to retain |
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a percentage of the amount collected and required to be reported as |
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reimbursement to the franchised dealer for the costs of collecting |
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the fee. The municipality may provide that the franchised dealer |
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may retain the amount only if the dealer pays the fee and files |
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reports as required by the municipality. |
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Sec. 328.005. USE OF REVENUE. A municipality may use |
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revenue from the fee imposed under this chapter only to: |
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(1) construct, maintain, or improve public roadways; |
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(2) construct, maintain, or improve drainage or |
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stormwater management or detention facilities; and |
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(3) construct, maintain, or improve flood control or |
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prevention facilities. |
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SECTION 2. As soon as possible after the effective date of |
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this Act, but not later than December 31, 2019, each municipality to |
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which a franchised dealer will be required to remit fees under |
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Section 328.004(b), Tax Code, as added by this Act, shall adopt any |
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ordinances necessary to govern the collection and enforcement of |
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the fee imposed under Chapter 328, Tax Code, as added by this Act. |
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SECTION 3. This Act applies only to a sale or lease of a new |
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luxury motor vehicle on or after January 1, 2020. A sale or lease |
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that occurs before that date is governed by the law in effect on the |
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date the sale or lease occurred, and that law is continued in effect |
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for that purpose. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |