Texas House Bill HB263

Texas 2019 - 86th Regular

Caption

Relating to an exemption from motor vehicle sales and use taxes for certain previously leased motor vehicles.

Impact

The bill's implementation means that individuals who lease vehicles could potentially face a lower tax liability if they choose to purchase the vehicle they have been leasing. By removing the tax requirement upon lease termination, HB263 supports consumers by making it cheaper to own a vehicle after leasing, which could consequently boost sales in the automotive sector. Furthermore, it aims to create a more favorable environment for leasing companies, as it may encourage lessees to exercise their purchase options.

Summary

House Bill 263 aims to provide an exemption from motor vehicle sales and use taxes for certain previously leased motor vehicles. Specifically, the bill amends the Tax Code to exempt the tax liability that typically applies during the retail sale of a vehicle when it is purchased by the lessee at the end of their lease. This legislative change is intended to ease the financial burden on individuals who decide to buy their leased vehicles, encouraging vehicle ownership and supporting consumers' choices.

Contention

While the bill may appear beneficial to consumers, there could be some contention regarding its fiscal implications for state revenue. Critics might argue that the proposed tax exemption could reduce tax income that the state typically collects from vehicle sales. This aspect could lead to debates among legislators about the necessity and prioritization of tax exemptions in the broader context of fiscal health and budget allocations for public services.