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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption of certain motor vehicle sales, gifts, |
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and exchanges from motor vehicle sales and use taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 152.001(1) and (2), Tax Code, are |
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amended to read as follows: |
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(1) "Sale": |
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(A) includes: |
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(i) [(A)] an installment and credit sale; |
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(ii) [(B)] an exchange of property for |
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property or money, other than an exchange described by Paragraph |
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(B)(i); |
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(iii) [(C)] an exchange in which property |
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is transferred but the seller retains title as security for payment |
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of the purchase price; |
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(iv) [(D)] a transaction in which a motor |
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vehicle is transferred to another person without payment of |
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consideration, other than a transaction described by Paragraph |
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(B)(ii) [and that does not qualify as a gift under Section 152.025]; |
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and |
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(v) [(E)] any other closed transaction that |
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constitutes a sale; and |
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(B) does not include: |
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(i) the even exchange of two motor |
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vehicles; and |
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(ii) the gift of a motor vehicle. |
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(2) "Retail sale" means a sale of a motor vehicle |
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except: |
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(A) the sale of a new motor vehicle in which the |
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purchaser is a franchised dealer who is authorized by law and by |
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franchise agreement to offer the vehicle for sale as a new motor |
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vehicle and who acquires the vehicle either for the exclusive |
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purpose of sale in the manner provided by law or for purposes |
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allowed under Chapter 503, Transportation Code; |
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(B) the sale of a vehicle other than a new motor |
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vehicle in which the purchaser is a dealer who holds a dealer's |
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general distinguishing number issued under Chapter 503, |
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Transportation Code, and who acquires the vehicle either for the |
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exclusive purpose of resale in the manner provided by law or for |
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purposes allowed under Chapter 503, Transportation Code; |
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(C) the sale to a franchised dealer of a new motor |
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vehicle removed from the franchised dealer's inventory for the |
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purpose of entering into a contract to lease the vehicle to another |
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person if, immediately after executing the lease contract, the |
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franchised dealer transfers title of the vehicle and assigns the |
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lease contract to the lessor of the vehicle; [or] |
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(D) the sale of a new motor vehicle in which the |
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purchaser is a manufacturer or distributor as those terms are |
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defined by Section 2301.002, Occupations Code, who acquires the |
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motor vehicle either for the exclusive purpose of sale in the manner |
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provided by law or for purposes allowed under Section 503.064, |
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Transportation Code; or |
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(E) the sale of a used motor vehicle from one |
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individual to another individual, provided that the sale takes |
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place in this state and the seller is not acting as a motor vehicle |
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dealer under Subchapter B, Chapter 503, Transportation Code, in |
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relation to the sale. |
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SECTION 2. Section 152.041(a), Tax Code, is amended to read |
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as follows: |
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(a) The tax assessor-collector of the county in which an |
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application for registration or for a Texas certificate of title is |
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made shall collect taxes imposed by this chapter[, subject to |
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Section 152.0412,] unless another person is required by this |
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chapter to collect the taxes. |
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SECTION 3. Sections 152.062(b) and (c), Tax Code, are |
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amended to read as follows: |
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(b) The statement must be [in the following form: |
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[(1) if a motor vehicle is sold, the seller and |
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purchaser shall make] a joint statement by the seller and purchaser |
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of the then value in dollars of the total consideration for the |
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vehicle[; |
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[(2) if the ownership of a motor vehicle is |
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transferred as the result of an even exchange, the principal |
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parties shall make a joint statement describing the nature of the |
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transaction; or |
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[(3) if the ownership of a motor vehicle is |
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transferred as the result of a gift, the principal parties shall |
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make a joint statement describing the nature of the transaction and |
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the relationship between the principal parties]. |
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(c) If a party to a sale[, even exchange, or gift] is a |
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corporation, the president, vice-president, secretary, manager, or |
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other authorized officer of the corporation shall make the |
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statement for the corporation. |
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SECTION 4. The following provisions of the Tax Code are |
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repealed: |
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(1) Section 152.002(f); |
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(2) Section 152.024; |
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(3) Section 152.025; |
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(4) Section 152.0412; |
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(5) Sections 152.062(b-1) and (b-2); and |
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(6) Section 152.1222. |
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SECTION 5. The changes in law made by this Act do not affect |
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tax liability accruing before the effective date of this Act. That |
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liability continues in effect as if this Act had not been enacted, |
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and the former law is continued in effect for the collection of |
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taxes due and for civil and criminal enforcement of the liability |
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for those taxes. |
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SECTION 6. This Act takes effect September 1, 2025. |