88R4719 BEF-D
 
  By: Thompson of Brazoria H.B. No. 2004
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the tax imposed on the purchase of a motor vehicle by
  the lessee on termination of the lease.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 152.001, Tax Code, is amended by
  amending Subdivision (2) and adding Subdivision (21) to read as
  follows:
               (2)  "Retail sale" means a sale of a motor vehicle
  except:
                     (A)  the sale of a new motor vehicle in which the
  purchaser is a franchised dealer who is authorized by law and by
  franchise agreement to offer the vehicle for sale as a new motor
  vehicle and who acquires the vehicle either for the exclusive
  purpose of sale in the manner provided by law or for purposes
  allowed under Chapter 503, Transportation Code;
                     (B)  the sale of a vehicle other than a new motor
  vehicle in which the purchaser is a dealer who holds a dealer's
  general distinguishing number issued under Chapter 503,
  Transportation Code, and who acquires the vehicle either for the
  exclusive purpose of resale in the manner provided by law or for
  purposes allowed under Chapter 503, Transportation Code;
                     (C)  the sale to a franchised dealer of a new motor
  vehicle removed from the franchised dealer's inventory for the
  purpose of entering into a contract to lease the vehicle to another
  person if, immediately after executing the lease contract, the
  franchised dealer transfers title of the vehicle and assigns the
  lease contract to the lessor of the vehicle; [or]
                     (D)  the sale of a new motor vehicle in which the
  purchaser is a manufacturer or distributor as those terms are
  defined by Section 2301.002, Occupations Code, who acquires the
  motor vehicle either for the exclusive purpose of sale in the manner
  provided by law or for purposes allowed under Section 503.064,
  Transportation Code; or
                     (E)  the sale of a vehicle other than a new motor
  vehicle in a lease buyout.
               (21)  "Lease buyout" means the purchase of a motor
  vehicle that is the subject of a lease agreement by the lessee of
  the vehicle under the lease agreement from the lessor on
  termination of the lease agreement. The term does not include the
  purchase of a motor vehicle by the lessee if the lessor has offered
  the vehicle for sale to persons other than the lessee.
         SECTION 2.  Subchapter B, Chapter 152, Tax Code, is amended
  by adding Section 152.029 to read as follows:
         Sec. 152.029.  TAX ON LEASE BUYOUT. (a)  A tax is imposed on
  the purchaser of a motor vehicle in a lease buyout.
         (b)  The tax is $5.
         (c)  No transfer of title in a lease buyout shall be
  accomplished until the tax has been paid.
         SECTION 3.  Section 152.0412(g), Tax Code, is amended to
  read as follows:
         (g)  This section does not apply to a transaction described
  by Section 152.024, [or] 152.025, or 152.029.
         SECTION 4.  Sections 152.062(b) and (c), Tax Code, are
  amended to read as follows:
         (b)  The statement must be in the following form:
               (1)  if a motor vehicle is sold, other than in a lease
  buyout, the seller and purchaser shall make a joint statement of the
  then value in dollars of the total consideration for the vehicle;
               (2)  if the ownership of a motor vehicle is transferred
  as the result of an even exchange, the principal parties shall make
  a joint statement describing the nature of the transaction; [or]
               (3)  if the ownership of a motor vehicle is transferred
  as the result of a gift, the principal parties shall make a joint
  statement describing the nature of the transaction and the
  relationship between the principal parties; or
               (4)  if a motor vehicle is purchased in a lease buyout,
  the seller and purchaser shall make a joint statement describing
  the nature of the transaction and shall provide a copy of the lease
  agreement.
         (c)  If a party to a sale, even exchange, [or] gift, or lease
  buyout is a corporation, the president, vice-president, secretary,
  manager, or other authorized officer of the corporation shall make
  the statement for the corporation.
         SECTION 5.  Section 152.063, Tax Code, is amended by adding
  Subsection (i) to read as follows:
         (i)  The seller of a motor vehicle in a lease buyout shall
  keep, at the seller's principal office for at least four years from
  the date of the sale, a copy of the lease agreement and a complete
  record of the lease buyout, including an invoice showing the total
  consideration for the lease buyout.
         SECTION 6.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act.  That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 7.  This Act takes effect September 1, 2023.