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A BILL TO BE ENTITLED
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AN ACT
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relating to the electronic submission of dealer's motor vehicle |
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inventory tax statements and escrow payments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 23.122(a), (b), and (f), Tax Code, are |
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amended to read as follows: |
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(a) In this section: |
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(1) "Aggregate tax rate" means the combined tax rates |
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of all relevant taxing units authorized by law to levy property |
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taxes against a dealer's motor vehicle inventory. |
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(2) "Chief appraiser" has the meaning given it in |
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Section 23.121 of this code. |
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(3) "Collector" has the meaning given it in Section |
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23.121 of this code. |
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(4) "Dealer's motor vehicle inventory" has the meaning |
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given it in Section 23.121 of this code. |
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(5) "Declaration" has the meaning given it in Section |
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23.121 of this code. |
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(5-a) "Electronic payment" means a payment made by |
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credit card, debit card, electronic check, electronic funds |
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transfer, wire transfer, or automated clearinghouse withdrawal. |
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(6) "Owner" has the meaning given it in Section 23.121 |
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of this code. |
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(7) "Relevant taxing unit" means a taxing unit, |
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including the county, authorized by law to levy property taxes |
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against a dealer's motor vehicle inventory. |
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(8) "Sales price" has the meaning given it in Section |
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23.121 of this code. |
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(9) "Statement" means the Dealer's Motor Vehicle |
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Inventory Tax Statement filed on a form promulgated by the |
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comptroller as required by this section. |
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(10) "Subsequent sale" has the meaning given it in |
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Section 23.121 of this code. |
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(11) "Total annual sales" has the meaning given it in |
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Section 23.121 of this code. |
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(12) "Unit property tax factor" means a number equal |
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to one-twelfth of the prior year aggregate tax rate at the location |
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where a dealer's motor vehicle inventory is located on January 1 of |
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the current year. |
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(b) Except for a vehicle sold to a dealer, a vehicle |
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included in a fleet transaction, or a vehicle that is the subject of |
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a subsequent sale, an owner or a person who has agreed by contract |
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to pay the owner's current year property taxes levied against the |
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owner's motor vehicle inventory shall assign a unit property tax to |
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each motor vehicle sold from a dealer's motor vehicle inventory. |
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The unit property tax of each motor vehicle is determined by |
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multiplying the sales price of the motor vehicle by the unit |
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property tax factor. On or before the 10th day of each month the |
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owner shall, together with the statement filed by the owner as |
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required by this section, deposit with the collector a sum equal to |
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the total of unit property tax assigned to all motor vehicles sold |
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from the dealer's motor vehicle inventory in the prior month to |
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which a unit property tax was assigned. The money shall be |
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deposited by the collector in or otherwise credited by the |
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collector to 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 motor vehicle inventory, and the owner shall fund the |
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escrow account as provided by this subsection. The collector shall |
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establish a procedure by which the owner may make the deposits |
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required by this section by electronic payment. |
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(f) On or before the 10th day of each month a dealer shall |
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file with the collector the statement covering the sale of each |
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motor vehicle sold by the dealer in the prior month. On or before |
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the 10th day of a month following a month in which a dealer does not |
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sell a motor vehicle, the dealer must file the statement with the |
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collector and indicate that no sales were made in the prior month. |
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A dealer shall file a copy of the statement with the chief appraiser |
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and retain documentation relating to the disposition of each motor |
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vehicle sold. A chief appraiser or collector may examine documents |
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held by a dealer as required by this subsection in the same manner, |
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and subject to the same provisions, as are set forth in Section |
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23.121(g). The collector shall establish a procedure by which a |
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dealer may file the statements required by this section by |
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electronic means. |
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SECTION 2. This Act takes effect September 1, 2023. |