Texas 2009 - 81st Regular

Texas Senate Bill SB996 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R5843 CBH-D
2	2	By: Averitt S.B. No. 996
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to imposition of the motor vehicle sales tax on leased
8	8	motor vehicles.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Chapter 152, Tax Code, is amended
11	11	to read as follows:
12	12	CHAPTER 152. TAXES ON SALE, RENTAL, LEASE, AND USE OF MOTOR VEHICLES
13	13	SECTION 2. Section 152.001, Tax Code, is amended by adding
14	14	Subdivision (7-a) and amending Subdivision (9) to read as follows:
15	15	(7-a) "Gross lease receipts" means the total amount a
16	16	person leasing a motor vehicle is required to pay under the lease,
17	17	but does not include:
18	18	(A) separately stated charges for insurance;
19	19	(B) charges for damages to the motor vehicle
20	20	occurring during the lease period;
21	21	(C) separately stated charges for motor fuel sold
22	22	by the owner of the motor vehicle; or
23	23	(D) discounts.
24	24	(9) "Owner of a motor vehicle" means:
25	25	(A) a person named in the certificate of title as
26	26	the owner of the vehicle; or
27	27	(B) a person who has the exclusive use of a motor
28	28	vehicle by reason of a lease or rental and holds the vehicle for
29	29	re-lease or re-rental.
30	30	SECTION 3. Section 152.0215(a), Tax Code, is amended to
31	31	read as follows:
32	32	(a) Except as provided by Subsection (a-1), a surcharge is
33	33	imposed on every retail sale, lease, or use of every on-road diesel
34	34	motor vehicle that is over 14,000 pounds and that is sold, leased,
35	35	or used in this state. The amount of the surcharge for a vehicle of
36	36	a model year 1996 or earlier is 2.5 percent of the total
37	37	consideration or, if the vehicle is leased, 2.5 percent of the gross
38	38	lease receipts. The amount of the surcharge [and] for a vehicle of a
39	39	model year 1997 or later is [,] one percent of the total
40	40	consideration or, if the vehicle is leased, one percent of the gross
41	41	lease receipts.
42	42	SECTION 4. Section 152.022, Tax Code, is amended to read as
43	43	follows:
44	44	Sec. 152.022. TAX ON MOTOR VEHICLE PURCHASED OR LEASED
45	45	OUTSIDE THIS STATE. (a) A use tax is imposed on a motor vehicle
46	46	purchased at retail sale or leased outside this state and used on
47	47	the public highways of this state by a Texas resident or other
48	48	person who is domiciled or doing business in this state.
49	49	(b) The tax rate is 6-1/4 percent of the total consideration
50	50	or, if the vehicle is leased, 6-1/4 percent of the gross lease
51	51	receipts.
52	52	SECTION 5. Section 152.026, Tax Code, is amended to read as
53	53	follows:
54	54	Sec. 152.026. TAX ON GROSS RENTAL RECEIPTS AND GROSS LEASE
55	55	RECEIPTS. (a) A tax is imposed on the gross rental receipts from
56	56	the rental of a rented motor vehicle. A tax is imposed on the gross
57	57	lease receipts from the lease of a leased motor vehicle.
58	58	(b) The tax rate is:
59	59	(1) 10 percent of the gross rental receipts from the
60	60	rental of a rented motor vehicle for 30 days or less and 6-1/4
61	61	percent of the gross rental receipts from the rental of a rented
62	62	motor vehicle for longer than 30 days; and
63	63	(2) 6-1/4 percent of the gross lease receipts from the
64	64	lease of a leased motor vehicle.
65	65	(c) Except for a destroyed motor vehicle or an unrecovered
66	66	stolen motor vehicle, the total amount of gross rental receipts or
67	67	gross lease receipts tax paid by the owner, as defined by Section
68	68	152.001(9)(A) [of this code], on a motor vehicle registered under
69	69	Section 152.061 [of this code] may not be less than an amount equal
70	70	to the tax that would be imposed by Section 152.021 or 152.022 [of
71	71	this code] but for Subsection (d) [of this section].
72	72	(d) The taxes imposed by Sections 152.021 and 152.022 [of
73	73	this code] are not due on a motor vehicle as long as it is registered
74	74	as a rental or lease vehicle under Section 152.061 [of this code].
75	75	SECTION 6. Section 152.045, Tax Code, is amended to read as
76	76	follows:
77	77	Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS
78	78	AND GROSS LEASE RECEIPTS. (a) Except as inconsistent with this
79	79	chapter and rules adopted under this chapter, an owner of a motor
80	80	vehicle subject to the tax on gross rental receipts shall report and
81	81	pay the tax to the comptroller in the same manner as the tax imposed
82	82	under Chapter 151 [Limited Sales, Excise and Use Tax] is reported
83	83	and paid by retailers [under Chapter 151 of this code].
84	84	(a-1) Except as inconsistent with this chapter and rules
85	85	adopted under this chapter, an owner of a motor vehicle subject to
86	86	the tax on gross lease receipts shall collect the gross lease
87	87	receipts tax from the person leasing the motor vehicle at the time
88	88	the motor vehicle is leased. The owner shall report and pay the tax
89	89	to the comptroller in the manner prescribed by rules adopted by the
90	90	comptroller.
91	91	(b) The owner shall add the tax to the rental or lease
92	92	charge, and when added, the tax is:
93	93	(1) a part of the rental or lease charge;
94	94	(2) a debt owed to the motor vehicle owner by the
95	95	person renting or leasing the vehicle; and
96	96	(3) recoverable at law in the same manner as the rental
97	97	or lease charge.
98	98	(c) The comptroller may proceed against a person renting or
99	99	leasing a motor vehicle for any unpaid gross rental receipts or
100	100	gross lease receipts tax.
101	101	SECTION 7. Section 152.046, Tax Code, is amended to read as
102	102	follows:
103	103	Sec. 152.046. CHANGE IN TAX STATUS OF MOTOR
104	104	VEHICLE. (a) If the owner, as defined by Section 152.001(9)(A)
105	105	[of this code], of a motor vehicle registered as a rental or lease
106	106	vehicle ceases to use the vehicle for rental or lease, the owner
107	107	shall report and remit on the next report required to be filed with
108	108	the comptroller by Section 152.045(a) or (a-1) [of this code] any
109	109	unpaid portion of gross rental receipts or gross lease receipts tax
110	110	imposed by Section 152.026 [of this code].
111	111	(b) An owner of a motor vehicle on which the motor vehicle
112	112	sales or use tax has been paid who subsequently uses the vehicle for
113	113	rental or lease shall collect the gross rental receipts or gross
114	114	lease receipts tax imposed by this chapter from the person renting
115	115	or leasing the vehicle. The owner may credit an amount equal to the
116	116	motor vehicle sales or use tax paid by the owner to the comptroller
117	117	against the amount of gross rental receipts or gross lease receipts
118	118	tax due. This credit is not transferable and cannot be applied
119	119	against tax due and payable from the rental or lease of another
120	120	vehicle belonging to the same owner.
121	121	(c) For the purpose of determining the amount of minimum tax
122	122	due under Section 152.026(c) [of this code] only, an owner of a
123	123	motor vehicle on which the tax on gross rental receipts or gross
124	124	lease receipts is imposed may credit against the amount of gross
125	125	rental receipts or gross lease receipts due an amount equal to the
126	126	tax on gross rental receipts or gross lease receipts the owner has
127	127	paid to any other state. This credit is not transferable and cannot
128	128	be applied against tax due and payable from the rental or lease of
129	129	another vehicle belonging to the same owner.
130	130	SECTION 8. Section 152.061, Tax Code, is amended to read as
131	131	follows:
132	132	Sec. 152.061. REGISTRATION OF MOTOR VEHICLE PURCHASED FOR
133	133	RENTAL OR LEASE. (a) An owner of a motor vehicle purchased for
134	134	rental or lease may furnish the county tax assessor-collector a
135	135	rental or lease certificate in lieu of the motor vehicle sales or
136	136	use tax imposed by Sections 152.021 and 152.022 [of this code]. The
137	137	county tax assessor-collector shall accept the motor vehicle for
138	138	registration and issue a receipt for the license and title
139	139	application.
140	140	(b) A rental or lease certificate may be furnished by:
141	141	(1) a dealer licensed under Chapter 503,
142	142	Transportation Code; or
143	143	(2) the owner if the vehicle is for use in a rental or
144	144	lease business that rents or leases at least five different motor
145	145	vehicles within any 12-month period.
146	146	(c) The rental or lease certificate shall be in a form
147	147	designated by the comptroller and must contain:
148	148	(1) the name, address, and signature of the owner;
149	149	(2) the owner's or dealer's license number or a
150	150	statement by the owner that the rental or lease business of the
151	151	owner meets the activity requirements of Subsection (b) [of this
152	152	section];
153	153	(3) the motor vehicle identification number; and
154	154	(4) the amount of total consideration for the motor
155	155	vehicle and the amount of tax that would be due if the rental or
156	156	lease certificate had not been furnished.
157	157	SECTION 9. Section 152.063(b), Tax Code, is amended to read
158	158	as follows:
159	159	(b) The owner of a motor vehicle used for rental or lease
160	160	purposes shall keep for four years after purchase of a motor vehicle
161	161	records and supporting documents containing the following
162	162	information on the amount of:
163	163	(1) total consideration for the motor vehicle;
164	164	(2) motor vehicle sales or use tax paid on the motor
165	165	vehicle;
166	166	(3) gross rental receipts or gross lease receipts
167	167	received from the rental or lease of the motor vehicle; and
168	168	(4) gross rental receipts and gross lease receipts tax
169	169	paid to the comptroller on each motor vehicle used for rental or
170	170	lease purposes by the owner.
171	171	SECTION 10. Subchapter D, Chapter 152, Tax Code, is amended
172	172	by adding Section 152.0638 to read as follows:
173	173	Sec. 152.0638. REPORT OF REPLACED LEASED VEHICLES. (a) A
174	174	person who is in the business of leasing motor vehicles shall report
175	175	quarterly to the comptroller on each motor vehicle:
176	176	(1) that the person purchased during the preceding
177	177	quarter that will be used for lease purposes; or
178	178	(2) that is a replaced motor vehicle as described by
179	179	Section 152.002(c) or (d).
180	180	(b) The report required under Subsection (a) must include:
181	181	(1) the vehicle identification number of the motor
182	182	vehicle; and
183	183	(2) proof of the total consideration paid for the
184	184	purchased vehicle or of the fair market value of the replaced
185	185	vehicle, as appropriate.
186	186	SECTION 11. Section 152.066(d), Tax Code, is amended to
187	187	read as follows:
188	188	(d) Except in the case of the gross rental receipts tax,
189	189	interest begins to accrue on delinquent taxes 60 days after the day
190	190	on which the joint statement or lease was executed. Delinquent
191	191	taxes on gross rental receipts draw interest beginning 60 days from
192	192	the due date.
193	193	SECTION 12. Section 152.084, Tax Code, is amended to read as
194	194	follows:
195	195	Sec. 152.084. RENTAL OR LEASE OF MOTOR VEHICLE TO PUBLIC
196	196	AGENCY. The taxes imposed by this chapter do not apply to the
197	197	rental or lease of a motor vehicle to a public agency. The tax which
198	198	would have been remitted on gross rental receipts or gross lease
199	199	receipts without this exemption shall be deemed to have been
200	200	remitted for the purpose of calculating the minimum gross rental
201	201	receipts or gross lease receipts tax imposed by Section 152.026 [of
202	202	this code].
203	203	SECTION 13. Section 152.085, Tax Code, is amended to read as
204	204	follows:
205	205	Sec. 152.085. RENTAL OR LEASE OF MOTOR VEHICLE FOR PURPOSES
206	206	OF RE-RENTAL OR RE-LEASE. (a) The taxes imposed by this chapter on
207	207	the gross rental receipts from the rental of a motor vehicle or on
208	208	the gross lease receipts from the lease of a motor vehicle do not
209	209	apply to the rental or lease of a motor vehicle for the purpose of
210	210	re-rental or re-lease.
211	211	(b) The minimum gross rental receipts or gross lease
212	212	receipts tax imposed by Section 152.026 [of this code] remains the
213	213	obligation of the owner as defined by Section 152.001(9)(A) [of
214	214	this code]. The owner may credit all gross rental receipts or gross
215	215	lease receipts taxes paid to the comptroller on the re-rental or
216	216	re-lease of a motor vehicle registered under Section 152.061 [of
217	217	this code] for the purpose of calculating the amount of minimum
218	218	gross rental receipts or gross lease receipts tax due, as
219	219	appropriate.
220	220	(c) A person authorized by Section 152.061 [of this code] to
221	221	register motor vehicles for rental or lease may issue an exemption
222	222	certificate to the owner of the motor vehicle. An owner who takes
223	223	the certificate in good faith is relieved of the burden of proving
224	224	that the motor vehicle was rented or leased for purposes of
225	225	re-rental or re-lease.
226	226	SECTION 14. Section 152.087, Tax Code, is amended to read as
227	227	follows:
228	228	Sec. 152.087. FIRE TRUCKS AND EMERGENCY MEDICAL SERVICES
229	229	VEHICLES. The taxes imposed by this chapter do not apply to the
230	230	purchase, rental, lease, or use of a fire truck, emergency medical
231	231	services vehicle as defined by Section 773.003, Health and Safety
232	232	Code, or other motor vehicle used exclusively for fire-fighting
233	233	purposes or for emergency medical services when purchased by:
234	234	(1) a volunteer fire department;
235	235	(2) a nonprofit emergency medical service provider
236	236	that receives a federal income tax exemption under Section 501(a),
237	237	Internal Revenue Code of 1986, as an organization described by
238	238	Section 501(c)(3), Internal Revenue Code of 1986; or
239	239	(3) an emergency medical service provider to which
240	240	Section 502.204, Transportation Code, applies.
241	241	SECTION 15. Section 152.088, Tax Code, is amended to read as
242	242	follows:
243	243	Sec. 152.088. MOTOR VEHICLES USED FOR RELIGIOUS PURPOSES.
244	244	The taxes imposed by this chapter do not apply to the sale or use of
245	245	or the receipts from the rental or lease of a motor vehicle that is
246	246	used for religious purposes.
247	247	SECTION 16. Section 152.091(c), Tax Code, is amended to
248	248	read as follows:
249	249	(c) The taxes imposed by this chapter do not apply to the
250	250	rental or lease of a farm machine, a trailer, or a semitrailer for
251	251	use primarily for farming and ranching, including the rearing of
252	252	poultry, and use in feedlots, or a machine, a trailer, or a
253	253	semitrailer for use primarily for timber operations. The tax that
254	254	would have been remitted on gross rental receipts or gross lease
255	255	receipts without this exemption shall be deemed to have been
256	256	remitted for the purpose of calculating the minimum gross rental
257	257	receipts or gross lease receipts imposed by Section 152.026. The
258	258	exemption provided by this subsection applies only if the owner of
259	259	the motor vehicle obtains in good faith an exemption certificate
260	260	from the person to whom the vehicle is being rented or leased.
261	261	SECTION 17. The heading to Section 152.093, Tax Code, is
262	262	amended to read as follows:
263	263	Sec. 152.093. MOTOR VEHICLES SOLD, RENTED, OR LEASED TO
264	264	CERTAIN LICENSED CHILD-CARE FACILITIES.
265	265	SECTION 18. Section 152.093(a), Tax Code, is amended to
266	266	read as follows:
267	267	(a) The taxes imposed by this chapter do not apply to a motor
268	268	vehicle:
269	269	(1) purchased, used, leased, or rented by a qualified
270	270	residential child-care facility; and
271	271	(2) intended for use primarily in transporting the
272	272	children residing in the facility under a state license.
273	273	SECTION 19. The following are repealed:
274	274	(1) Section 152.083, Tax Code; and
275	275	(2) Section 152.091(b), Tax Code.
276	276	SECTION 20. This Act applies only to a lease entered into on
277	277	or after the effective date of this Act. A lease entered into
278	278	before the effective date of this Act is governed by the law in
279	279	effect on the date the lease was entered into, and that law is
280	280	continued in effect for that purpose.
281	281	SECTION 21. The change in law made by this Act does not
282	282	affect tax liability accruing before the effective date of this
283	283	Act. That liability continues in effect as if this Act had not been
284	284	enacted, and the former law is continued in effect for the
285	285	collection of taxes due and for civil and criminal enforcement of
286	286	the liability for those taxes.
287	287	SECTION 22. This Act takes effect September 1, 2009.