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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation of leased motor |
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vehicles that are not held primarily for the production of income by |
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the lessee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 11.252, Tax Code, is |
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amended to read as follows: |
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Sec. 11.252. MOTOR VEHICLES LEASED FOR [PERSONAL] USE OTHER |
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THAN PRODUCTION OF INCOME. |
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SECTION 2. Sections 11.252(b) and (d), Tax Code, are |
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amended to read as follows: |
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(b) For purposes of this section, a motor vehicle is |
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presumed to be used primarily for activities that do not involve the |
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production of income if: |
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(1) 50 percent or more of the miles the motor vehicle |
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is driven in a year are for non-income producing purposes; |
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(2) the motor vehicle is leased to this state or a |
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political subdivision of this state; or |
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(3) the motor vehicle: |
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(A) is leased to an organization that is exempt |
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from federal income taxation under Section 501(a), Internal Revenue |
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Code of 1986, as an organization described by Section 501(c)(3) of |
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that code; and |
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(B) would be exempt from taxation if the vehicle |
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were owned by the organization. |
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(d) In connection with the requirements and procedures |
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under Subsection (c), the comptroller by rule shall adopt a form to |
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be completed by the lessee of a motor vehicle for which the owner of |
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the vehicle may apply for an exemption under Subsection (a). The |
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form shall require a [the] lessee who is an individual to provide |
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the lessee's name, address, and driver's license or personal |
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identification certificate number. The form shall require a lessee |
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that is an entity described by Subsection (b) to provide the |
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lessee's name, address, and, if applicable, federal tax |
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identification number. The form shall require a lessee who is an |
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individual, or the authorized representative of a lessee that is an |
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entity described by Subsection (b), [and] to certify under oath |
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that the lessee does not hold the vehicle for the production of |
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income and that the vehicle is used primarily for activities that do |
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not involve the production of income. The comptroller shall |
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include on the form a notice of the penalties prescribed by Section |
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37.10, Penal Code, for making a false statement on the form. |
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SECTION 3. The changes in law made by this Act apply only to |
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ad valorem taxes imposed for a tax year beginning on or after the |
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effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2019. |
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