88R12784 DRS-D
 
  By: Hughes S.B. No. 2252
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the electronic submission of dealer's motor vehicle
  inventory tax statements and escrow payments.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 23.122(a), (b), and (f), Tax Code, are
  amended to read as follows:
         (a)  In this section:
               (1)  "Aggregate tax rate" means the combined tax rates
  of all relevant taxing units authorized by law to levy property
  taxes against a dealer's motor vehicle inventory.
               (2)  "Chief appraiser" has the meaning given it in
  Section 23.121 of this code.
               (3)  "Collector" has the meaning given it in Section
  23.121 of this code.
               (4)  "Dealer's motor vehicle inventory" has the meaning
  given it in Section 23.121 of this code.
               (5)  "Declaration" has the meaning given it in Section
  23.121 of this code.
               (5-a) "Electronic payment" means a payment made by
  credit card, debit card, electronic check, electronic funds
  transfer, wire transfer, or automated clearinghouse withdrawal.
               (6)  "Owner" has the meaning given it in Section 23.121
  of this code.
               (7)  "Relevant taxing unit" means a taxing unit,
  including the county, authorized by law to levy property taxes
  against a dealer's motor vehicle inventory.
               (8)  "Sales price" has the meaning given it in Section
  23.121 of this code.
               (9)  "Statement" means the Dealer's Motor Vehicle
  Inventory Tax Statement filed on a form promulgated by the
  comptroller as required by this section.
               (10)  "Subsequent sale" has the meaning given it in
  Section 23.121 of this code.
               (11)  "Total annual sales" has the meaning given it in
  Section 23.121 of this code.
               (12)  "Unit property tax factor" means a number equal
  to one-twelfth of the prior year aggregate tax rate at the location
  where a dealer's motor vehicle inventory is located on January 1 of
  the current year.
         (b)  Except for a vehicle sold to a dealer, a vehicle
  included in a fleet transaction, or a vehicle that is the subject of
  a subsequent sale, an owner or a person who has agreed by contract
  to pay the owner's current year property taxes levied against the
  owner's motor vehicle inventory shall assign a unit property tax to
  each motor vehicle sold from a dealer's motor vehicle inventory.  
  The unit property tax of each motor vehicle is determined by
  multiplying the sales price of the motor vehicle by the unit
  property tax factor.  On or before the 10th day of each month the
  owner shall, together with the statement filed by the owner as
  required by this section, deposit with the collector a sum equal to
  the total of unit property tax assigned to all motor vehicles sold
  from the dealer's motor vehicle inventory in the prior month to
  which a unit property tax was assigned.  The money shall be
  deposited by the collector in or otherwise credited by the
  collector to the owner's escrow account for prepayment of property
  taxes as provided by this section.  An escrow account required by
  this section is used to pay property taxes levied against the
  dealer's motor vehicle inventory, and the owner shall fund the
  escrow account as provided by this subsection.  The collector shall
  establish a procedure by which the owner may make the deposits
  required by this section by electronic payment.
         (f)  On or before the 10th day of each month a dealer shall
  file with the collector the statement covering the sale of each
  motor vehicle sold by the dealer in the prior month.  On or before
  the 10th day of a month following a month in which a dealer does not
  sell a motor vehicle, the dealer must file the statement with the
  collector and indicate that no sales were made in the prior month.  
  A dealer shall file a copy of the statement with the chief appraiser
  and retain documentation relating to the disposition of each motor
  vehicle sold.  A chief appraiser or collector may examine documents
  held by a dealer as required by this subsection in the same manner,
  and subject to the same provisions, as are set forth in Section
  23.121(g).  The collector shall establish a procedure by which a
  dealer may file the statements required by this section by
  electronic means.
         SECTION 2.  This Act takes effect September 1, 2023.