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A BILL TO BE ENTITLED
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AN ACT
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relating to the clarification of certain provisions regarding taxes |
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imposed on the sale, rental, and use of motor vehicles. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 152.001(14), Tax Code, is amended to |
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read as follows: |
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(14) "Nonprofit" means: |
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(A) organized as a nonprofit corporation that is |
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governed by Chapter 22, Business Organizations Code [under the |
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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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SECTION 2. Section 152.002(c), Tax Code, is amended to read |
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as follows: |
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(c) A person who is in the business of selling, renting, or |
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leasing motor vehicles, who obtains the certificate of title under |
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Chapter 501, Transportation Code, to a motor vehicle, and who uses |
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that motor vehicle in this state for business or personal purposes |
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may deduct its fair market value from the total consideration paid |
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for a replacement vehicle if: |
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(1) the person obtains the certificate of title under |
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Chapter 501, Transportation Code, to the replacement motor vehicle; |
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(2) the person uses the replacement motor vehicle in |
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this state for business or personal purposes; and |
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(3) the replaced motor vehicle is offered for sale. |
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SECTION 3. The amendments made by this Act are a |
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clarification of existing law and do not imply that existing law may |
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be construed as inconsistent with the law as amended by this Act. |
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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, 2021. |