81R5843 CBH-D
By: Averitt S.B. No. 996
A BILL TO BE ENTITLED
AN ACT
relating to imposition of the motor vehicle sales tax on leased
motor vehicles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 152, Tax Code, is amended
to read as follows:
CHAPTER 152. TAXES ON SALE, RENTAL, LEASE, AND USE OF MOTOR VEHICLES
SECTION 2. Section 152.001, Tax Code, is amended by adding
Subdivision (7-a) and amending Subdivision (9) to read as follows:
(7-a) "Gross lease receipts" means the total amount a
person leasing a motor vehicle is required to pay under the lease,
but does not include:
(A) separately stated charges for insurance;
(B) charges for damages to the motor vehicle
occurring during the lease period;
(C) separately stated charges for motor fuel sold
by the owner of the motor vehicle; or
(D) discounts.
(9) "Owner of a motor vehicle" means:
(A) a person named in the certificate of title as
the owner of the vehicle; or
(B) a person who has the exclusive use of a motor
vehicle by reason of a lease or rental and holds the vehicle for
re-lease or re-rental.
SECTION 3. Section 152.0215(a), Tax Code, is amended to
read as follows:
(a) Except as provided by Subsection (a-1), a surcharge is
imposed on every retail sale, lease, or use of every on-road diesel
motor vehicle that is over 14,000 pounds and that is sold, leased,
or used in this state. The amount of the surcharge for a vehicle of
a model year 1996 or earlier is 2.5 percent of the total
consideration or, if the vehicle is leased, 2.5 percent of the gross
lease receipts. The amount of the surcharge [and] for a vehicle of a
model year 1997 or later is [,] one percent of the total
consideration or, if the vehicle is leased, one percent of the gross
lease receipts.
SECTION 4. Section 152.022, Tax Code, is amended to read as
follows:
Sec. 152.022. TAX ON MOTOR VEHICLE PURCHASED OR LEASED
OUTSIDE THIS STATE. (a) A use tax is imposed on a motor vehicle
purchased at retail sale or leased outside this state and used on
the public highways of this state by a Texas resident or other
person who is domiciled or doing business in this state.
(b) The tax rate is 6-1/4 percent of the total consideration
or, if the vehicle is leased, 6-1/4 percent of the gross lease
receipts.
SECTION 5. Section 152.026, Tax Code, is amended to read as
follows:
Sec. 152.026. TAX ON GROSS RENTAL RECEIPTS AND GROSS LEASE
RECEIPTS. (a) A tax is imposed on the gross rental receipts from
the rental of a rented motor vehicle. A tax is imposed on the gross
lease receipts from the lease of a leased motor vehicle.
(b) The tax rate is:
(1) 10 percent of the gross rental receipts from the
rental of a rented motor vehicle for 30 days or less and 6-1/4
percent of the gross rental receipts from the rental of a rented
motor vehicle for longer than 30 days; and
(2) 6-1/4 percent of the gross lease receipts from the
lease of a leased motor vehicle.
(c) Except for a destroyed motor vehicle or an unrecovered
stolen motor vehicle, the total amount of gross rental receipts or
gross lease receipts tax paid by the owner, as defined by Section
152.001(9)(A) [of this code], on a motor vehicle registered under
Section 152.061 [of this code] may not be less than an amount equal
to the tax that would be imposed by Section 152.021 or 152.022 [of
this code] but for Subsection (d) [of this section].
(d) The taxes imposed by Sections 152.021 and 152.022 [of
this code] are not due on a motor vehicle as long as it is registered
as a rental or lease vehicle under Section 152.061 [of this code].
SECTION 6. Section 152.045, Tax Code, is amended to read as
follows:
Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS
AND GROSS LEASE RECEIPTS. (a) Except as inconsistent with this
chapter and rules adopted under this chapter, an owner of a motor
vehicle subject to the tax on gross rental receipts shall report and
pay the tax to the comptroller in the same manner as the tax imposed
under Chapter 151 [Limited Sales, Excise and Use Tax] is reported
and paid by retailers [under Chapter 151 of this code].
(a-1) Except as inconsistent with this chapter and rules
adopted under this chapter, an owner of a motor vehicle subject to
the tax on gross lease receipts shall collect the gross lease
receipts tax from the person leasing the motor vehicle at the time
the motor vehicle is leased. The owner shall report and pay the tax
to the comptroller in the manner prescribed by rules adopted by the
comptroller.
(b) The owner shall add the tax to the rental or lease
charge, and when added, the tax is:
(1) a part of the rental or lease charge;
(2) a debt owed to the motor vehicle owner by the
person renting or leasing the vehicle; and
(3) recoverable at law in the same manner as the rental
or lease charge.
(c) The comptroller may proceed against a person renting or
leasing a motor vehicle for any unpaid gross rental receipts or
gross lease receipts tax.
SECTION 7. Section 152.046, Tax Code, is amended to read as
follows:
Sec. 152.046. CHANGE IN TAX STATUS OF MOTOR
VEHICLE. (a) If the owner, as defined by Section 152.001(9)(A)
[of this code], of a motor vehicle registered as a rental or lease
vehicle ceases to use the vehicle for rental or lease, the owner
shall report and remit on the next report required to be filed with
the comptroller by Section 152.045(a) or (a-1) [of this code] any
unpaid portion of gross rental receipts or gross lease receipts tax
imposed by Section 152.026 [of this code].
(b) An owner of a motor vehicle on which the motor vehicle
sales or use tax has been paid who subsequently uses the vehicle for
rental or lease shall collect the gross rental receipts or gross
lease receipts tax imposed by this chapter from the person renting
or leasing the vehicle. The owner may credit an amount equal to the
motor vehicle sales or use tax paid by the owner to the comptroller
against the amount of gross rental receipts or gross lease receipts
tax due. This credit is not transferable and cannot be applied
against tax due and payable from the rental or lease of another
vehicle belonging to the same owner.
(c) For the purpose of determining the amount of minimum tax
due under Section 152.026(c) [of this code] only, an owner of a
motor vehicle on which the tax on gross rental receipts or gross
lease receipts is imposed may credit against the amount of gross
rental receipts or gross lease receipts due an amount equal to the
tax on gross rental receipts or gross lease receipts the owner has
paid to any other state. This credit is not transferable and cannot
be applied against tax due and payable from the rental or lease of
another vehicle belonging to the same owner.
SECTION 8. Section 152.061, Tax Code, is amended to read as
follows:
Sec. 152.061. REGISTRATION OF MOTOR VEHICLE PURCHASED FOR
RENTAL OR LEASE. (a) An owner of a motor vehicle purchased for
rental or lease may furnish the county tax assessor-collector a
rental or lease certificate in lieu of the motor vehicle sales or
use tax imposed by Sections 152.021 and 152.022 [of this code]. The
county tax assessor-collector shall accept the motor vehicle for
registration and issue a receipt for the license and title
application.
(b) A rental or lease certificate may be furnished by:
(1) a dealer licensed under Chapter 503,
Transportation Code; or
(2) the owner if the vehicle is for use in a rental or
lease business that rents or leases at least five different motor
vehicles within any 12-month period.
(c) The rental or lease certificate shall be in a form
designated by the comptroller and must contain:
(1) the name, address, and signature of the owner;
(2) the owner's or dealer's license number or a
statement by the owner that the rental or lease business of the
owner meets the activity requirements of Subsection (b) [of this
section];
(3) the motor vehicle identification number; and
(4) the amount of total consideration for the motor
vehicle and the amount of tax that would be due if the rental or
lease certificate had not been furnished.
SECTION 9. Section 152.063(b), Tax Code, is amended to read
as follows:
(b) The owner of a motor vehicle used for rental or lease
purposes shall keep for four years after purchase of a motor vehicle
records and supporting documents containing the following
information on the amount of:
(1) total consideration for the motor vehicle;
(2) motor vehicle sales or use tax paid on the motor
vehicle;
(3) gross rental receipts or gross lease receipts
received from the rental or lease of the motor vehicle; and
(4) gross rental receipts and gross lease receipts tax
paid to the comptroller on each motor vehicle used for rental or
lease purposes by the owner.
SECTION 10. Subchapter D, Chapter 152, Tax Code, is amended
by adding Section 152.0638 to read as follows:
Sec. 152.0638. REPORT OF REPLACED LEASED VEHICLES. (a) A
person who is in the business of leasing motor vehicles shall report
quarterly to the comptroller on each motor vehicle:
(1) that the person purchased during the preceding
quarter that will be used for lease purposes; or
(2) that is a replaced motor vehicle as described by
Section 152.002(c) or (d).
(b) The report required under Subsection (a) must include:
(1) the vehicle identification number of the motor
vehicle; and
(2) proof of the total consideration paid for the
purchased vehicle or of the fair market value of the replaced
vehicle, as appropriate.
SECTION 11. Section 152.066(d), Tax Code, is amended to
read as follows:
(d) Except in the case of the gross rental receipts tax,
interest begins to accrue on delinquent taxes 60 days after the day
on which the joint statement or lease was executed. Delinquent
taxes on gross rental receipts draw interest beginning 60 days from
the due date.
SECTION 12. Section 152.084, Tax Code, is amended to read as
follows:
Sec. 152.084. RENTAL OR LEASE OF MOTOR VEHICLE TO PUBLIC
AGENCY. The taxes imposed by this chapter do not apply to the
rental or lease of a motor vehicle to a public agency. The tax which
would have been remitted on gross rental receipts or gross lease
receipts without this exemption shall be deemed to have been
remitted for the purpose of calculating the minimum gross rental
receipts or gross lease receipts tax imposed by Section 152.026 [of
this code].
SECTION 13. Section 152.085, Tax Code, is amended to read as
follows:
Sec. 152.085. RENTAL OR LEASE OF MOTOR VEHICLE FOR PURPOSES
OF RE-RENTAL OR RE-LEASE. (a) The taxes imposed by this chapter on
the gross rental receipts from the rental of a motor vehicle or on
the gross lease receipts from the lease of a motor vehicle do not
apply to the rental or lease of a motor vehicle for the purpose of
re-rental or re-lease.
(b) The minimum gross rental receipts or gross lease
receipts tax imposed by Section 152.026 [of this code] remains the
obligation of the owner as defined by Section 152.001(9)(A) [of
this code]. The owner may credit all gross rental receipts or gross
lease receipts taxes paid to the comptroller on the re-rental or
re-lease of a motor vehicle registered under Section 152.061 [of
this code] for the purpose of calculating the amount of minimum
gross rental receipts or gross lease receipts tax due, as
appropriate.
(c) A person authorized by Section 152.061 [of this code] to
register motor vehicles for rental or lease may issue an exemption
certificate to the owner of the motor vehicle. An owner who takes
the certificate in good faith is relieved of the burden of proving
that the motor vehicle was rented or leased for purposes of
re-rental or re-lease.
SECTION 14. Section 152.087, Tax Code, is amended to read as
follows:
Sec. 152.087. FIRE TRUCKS AND EMERGENCY MEDICAL SERVICES
VEHICLES. The taxes imposed by this chapter do not apply to the
purchase, rental, lease, or use of a fire truck, emergency medical
services vehicle as defined by Section 773.003, Health and Safety
Code, or other motor vehicle used exclusively for fire-fighting
purposes or for emergency medical services when purchased by:
(1) a volunteer fire department;
(2) a nonprofit emergency medical service provider
that receives a federal income tax exemption under Section 501(a),
Internal Revenue Code of 1986, as an organization described by
Section 501(c)(3), Internal Revenue Code of 1986; or
(3) an emergency medical service provider to which
Section 502.204, Transportation Code, applies.
SECTION 15. Section 152.088, Tax Code, is amended to read as
follows:
Sec. 152.088. MOTOR VEHICLES USED FOR RELIGIOUS PURPOSES.
The taxes imposed by this chapter do not apply to the sale or use of
or the receipts from the rental or lease of a motor vehicle that is
used for religious purposes.
SECTION 16. Section 152.091(c), Tax Code, is amended to
read as follows:
(c) The taxes imposed by this chapter do not apply to the
rental or lease of a farm machine, a trailer, or a semitrailer for
use primarily for farming and ranching, including the rearing of
poultry, and use in feedlots, or a machine, a trailer, or a
semitrailer for use primarily for timber operations. The tax that
would have been remitted on gross rental receipts or gross lease
receipts without this exemption shall be deemed to have been
remitted for the purpose of calculating the minimum gross rental
receipts or gross lease receipts imposed by Section 152.026. The
exemption provided by this subsection applies only if the owner of
the motor vehicle obtains in good faith an exemption certificate
from the person to whom the vehicle is being rented or leased.
SECTION 17. The heading to Section 152.093, Tax Code, is
amended to read as follows:
Sec. 152.093. MOTOR VEHICLES SOLD, RENTED, OR LEASED TO
CERTAIN LICENSED CHILD-CARE FACILITIES.
SECTION 18. Section 152.093(a), Tax Code, is amended to
read as follows:
(a) The taxes imposed by this chapter do not apply to a motor
vehicle:
(1) purchased, used, leased, or rented by a qualified
residential child-care facility; and
(2) intended for use primarily in transporting the
children residing in the facility under a state license.
SECTION 19. The following are repealed:
(1) Section 152.083, Tax Code; and
(2) Section 152.091(b), Tax Code.
SECTION 20. This Act applies only to a lease entered into on
or after the effective date of this Act. A lease entered into
before the effective date of this Act is governed by the law in
effect on the date the lease was entered into, and that law is
continued in effect for that purpose.
SECTION 21. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 22. This Act takes effect September 1, 2009.