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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption of motor vehicles transferred from a |
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decedent's estate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 152.025(a), Tax Code, is amended to read |
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as follows: |
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(a) A tax is imposed on the recipient of a gift of a motor |
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vehicle. This section applies only if the person receiving the |
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motor vehicle: |
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(1) receives the vehicle from: |
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(A) the person's: |
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(i) spouse; |
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(ii) parent or stepparent; |
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(iii) grandparent or grandchild; |
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(iv) child or stepchild; |
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(v) sibling; or |
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(vi) guardian; |
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[(B) a decedent's estate;] |
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(B) [(C)] a trust subject to the Texas Trust Code |
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(Subtitle B, Title 9, Property Code) that was revocable by a |
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decedent or that was jointly revocable by a decedent and the |
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decedent's spouse; or |
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(C) [(D)] a trust subject to the Texas Trust Code |
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that is revocable by the person receiving the motor vehicle or that |
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is jointly revocable by the recipient and the recipient's spouse; |
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(2) is a trust subject to the Texas Trust Code that is |
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revocable by the transferor of the motor vehicle or that is jointly |
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revocable by the transferor and the transferor's spouse; or |
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(3) is exempt from federal income taxation under |
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Section 501(a), Internal Revenue Code of 1986, by being listed as an |
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exempt organization under Section 501(c)(3) of that code, and the |
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vehicle will be used for the purposes of the organization. |
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SECTION 2. Section 152.062(b-2), Tax Code, is amended to read |
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as follows: |
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(b-2) A joint statement required by Subsection (b)(3) that |
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relates to a gift from a person [or estate] described by Section |
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152.025(a)(1) must be filed in person by the recipient of the gift |
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or, as applicable, the person from whom the gift is received [or a |
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person authorized to act on behalf of the estate from which the gift |
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is received]. A motor vehicle title service required to be licensed |
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under Chapter 520, Transportation Code, may not be used to file the |
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statement. The person who files the statement must present to the |
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tax assessor-collector an unexpired identification document issued |
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to the person that bears the person's photograph and is: |
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(1) a driver's license or personal identification card |
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issued by this state or another state of the United States; |
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(2) an original United States passport or an original |
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passport issued by a foreign country; |
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(3) an identification card or similar form of |
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identification issued by the Texas Department of Criminal Justice; |
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(4) a United States military identification card; or |
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(5) an identification card or document issued by the |
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United States Department of Homeland Security or United States |
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Citizenship and Immigration Services. |
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SECTION 3. Subchapter E, Chapter 152, Tax Code, is amended by |
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adding Section 152.094 as follows: |
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Sec. 152.094. MOTOR VEHICLE ACQUIRED BY A DISTRUBUTEE. |
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(a) In this section, "distribute" and "estate" have the |
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meanings assigned by Chapter 22, Estates Code. |
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(b) The taxes imposed by this chapter do not apply to a motor |
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vehicle acquired under Section 501.031, Transportation Code or from |
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an estate by a distributee. |
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SECTION 4. The change in law made by this Act does 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 5. This Act takes effect September 1, 2025. |