Relating to the reporting of certain inventories for ad valorem tax purposes; providing penalties.
Impact
The amendments this bill proposes significantly impact businesses operating under the Texas Tax Code, particularly those dealing in motor vehicles and manufactured housing. By requiring detailed monthly reports and assigning unit property taxes based on sales prices, it aims to streamline the tax reporting process for inventory dealers. This regulatory change is anticipated to enhance tax compliance and accountability within the industry, which, in the long term, could lead to increased tax revenues for local governments.
Summary
SB2149 is a legislative bill proposing amendments to the reporting requirements for certain inventories concerning ad valorem taxes. The bill mandates that dealers must file monthly declarations detailing the sales of motor vehicles and manufactured housing, specifying the unit property tax assigned to each sold item. Additionally, the bill introduces penalties for dealers who fail to comply with the filing requirements. The penalties escalate to $1,000 for each month a declaration is not filed, thereby equating compliance with a financial imperative for inventory dealers.
Contention
Notably, the requirement for a monthly filing may be seen as burdensome for some smaller dealers or those with fluctuating inventory sales. Critics might argue that the financial penalties tied to non-compliance could disproportionately impact small businesses compared to larger corporations with more resources. However, proponents of the bill argue that these measures ensure more accurate tax assessments and help eliminate tax fraud, potentially leveling the playing field among dealers of varying sizes.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Relating to a study of the feasibility and benefits to this state of abolishing the property tax assistance division of the office of the comptroller of public accounts and transferring its powers and duties to an independent agency.
Relating to abolishing the property tax assistance division of the office of the comptroller of public accounts and transferring its powers and duties to the newly created State Property Tax Board.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to the creation, organization, governance, duties, and functions of the Texas Department of Motor Vehicles, including the transfer of certain duties to the Texas Department of Motor Vehicles and the Texas Department of Licensing and Regulation, and to the regulation of certain franchised motor vehicle dealers; providing a penalty.