Texas 2011 - 82nd Regular

Texas House Bill HB2237 Compare Versions

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Old	New	Differences
1	1	82R21473 ALL-F
2	2	By: Lyne, et al. H.B. No. 2237
3	3	Substitute the following for H.B. No. 2237:
4	4	By: Phillips C.S.H.B. No. 2237
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the taxation and titling of certain off-road vehicles.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 152.001, Tax Code, is amended by
12	12	amending Subdivision (3) and adding Subdivision (20) to read as
13	13	follows:
14	14	(3) "Motor vehicle [Vehicle]" includes:
15	15	(A) a self-propelled vehicle designed to
16	16	transport persons or property on a public highway;
17	17	(B) a trailer and semitrailer, including a van,
18	18	flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or
19	19	converter gear; [and]
20	20	(C) a house trailer as defined by Chapter 501,
21	21	Transportation Code; and
22	22	(D) an off-road vehicle that is not required to
23	23	be registered under Chapter 502, Transportation Code.
24	24	(20) "Off-road vehicle" means:
25	25	(A) an all-terrain vehicle or a recreational
26	26	off-highway vehicle, as those terms are defined by Section 502.001,
27	27	Transportation Code, provided that the vehicle may be designed by
28	28	the manufacturer primarily for farming; or
29	29	(B) a motorcycle designed by the manufacturer for
30	30	off-highway use.
31	31	SECTION 2. Section 152.091, Tax Code, is amended to read as
32	32	follows:
33	33	Sec. 152.091. FARM OR TIMBER USE. (a) The taxes imposed by
34	34	this chapter do not apply to the sale or use of [a]:
35	35	(1) a farm machine, a trailer, a [or] semitrailer, or
36	36	an off-road vehicle for use primarily for farming and ranching,
37	37	including the rearing of poultry, and use in feedlots; or
38	38	(2) a machine, a trailer, a [or] semitrailer, or an
39	39	off-road vehicle for use primarily for timber operations.
40	40	(b)(1) The taxes imposed by this chapter do not apply to the
41	41	purchase of [a]:
42	42	(A) a farm machine, a trailer, a [or]
43	43	semitrailer, or an off-road vehicle that is to be leased for use
44	44	primarily for farming and ranching, including the rearing of
45	45	poultry, and use in feedlots; or
46	46	(B) a machine, a trailer, a [or] semitrailer, or
47	47	an off-road vehicle that is to be leased for use primarily for
48	48	timber operations.
49	49	(2) The exemption provided by this subsection applies
50	50	only if the person purchasing the machine, trailer, [or]
51	51	semitrailer, or off-road vehicle to be leased presents the tax
52	52	assessor-collector a form prescribed and provided by the
53	53	comptroller showing:
54	54	(A) the identification of the motor vehicle;
55	55	(B) the name and address of the lessor and the
56	56	lessee; and
57	57	(C) verification by the lessee that the machine,
58	58	trailer, [or] semitrailer, or off-road vehicle will be used
59	59	primarily for:
60	60	(i) farming and ranching, including the
61	61	rearing of poultry, and use in feedlots; or
62	62	(ii) timber operations.
63	63	(3) If a motor vehicle for which the tax has not been
64	64	paid ceases to be leased for use primarily for farming and ranching,
65	65	including the rearing of poultry, and use in feedlots or timber
66	66	operations, the owner shall notify the comptroller on a form
67	67	provided by the comptroller and shall pay the sales or use tax on
68	68	the motor vehicle based on the owner's book value of the motor
69	69	vehicle. The tax is imposed at the same percentage rate that is
70	70	provided by Section 152.021(b).
71	71	(c) The taxes imposed by this chapter do not apply to the
72	72	rental of a farm machine, a trailer, [or] a semitrailer, or an
73	73	off-road vehicle for use primarily for farming and ranching,
74	74	including the rearing of poultry, and use in feedlots, or a machine,
75	75	a trailer, [or] a semitrailer, or an off-road vehicle for use
76	76	primarily for timber operations. The tax that would have been
77	77	remitted on gross rental receipts without this exemption shall be
78	78	deemed to have been remitted for the purpose of calculating the
79	79	minimum gross rental receipts imposed by Section 152.026. The
80	80	exemption provided by this subsection applies only if the owner of
81	81	the motor vehicle obtains in good faith an exemption certificate
82	82	from the person to whom the vehicle is being rented.
83	83	(d) For purposes of this section, a machine or an off-road
84	84	vehicle is used "primarily for timber operations" if the machine or
85	85	off-road vehicle is a self-propelled motor vehicle that is
86	86	specially adapted to perform a specialized function in the
87	87	production of timber, including land preparation, planting,
88	88	maintenance, and gathering of trees commonly grown for commercial
89	89	timber. The term does not include a self-propelled motor vehicle
90	90	used to transport timber or timber products.
91	91	SECTION 3. Subchapter B, Chapter 501, Transportation Code,
92	92	is amended by adding Section 501.0225 to read as follows:
93	93	Sec. 501.0225. CERTIFICATE OF TITLE REQUIRED FOR OFF-ROAD
94	94	VEHICLE. A person who purchases, imports, or otherwise acquires an
95	95	off-road vehicle, as defined by Section 152.001, Tax Code, that is
96	96	not required to be registered under Chapter 502 may not operate or
97	97	permit the operation of the vehicle in this state, or sell or
98	98	dispose of the vehicle in this state, until the person obtains a
99	99	certificate of title for the vehicle. This section does not apply
100	100	to:
101	101	(1) an off-road vehicle that is exempt from motor
102	102	vehicle sales and use taxation under Section 152.091, Tax Code; or
103	103	(2) an off-road vehicle acquired and sold or disposed
104	104	of by a lienholder exercising a statutory or contractual lien right
105	105	with regard to the vehicle, except that this section does apply to
106	106	the purchaser of that vehicle.
107	107	SECTION 4. Section 501.0225, Transportation Code, as added
108	108	by this Act, applies only to a person who purchases, imports, or
109	109	otherwise acquires an off-road vehicle on or after the effective
110	110	date of this Act. A person who purchases, imports, or otherwise
111	111	acquires an off-road vehicle before the effective date of this Act
112	112	is governed by the law in effect immediately before the effective
113	113	date of this Act, and the former law is continued in effect for that
114	114	purpose.
115	115	SECTION 5. The change in law made by this Act does not
116	116	affect tax liability accruing before the effective date of this
117	117	Act. That liability continues in effect as if this Act had not been
118	118	enacted, and the former law is continued in effect for the
119	119	collection of taxes due and for civil and criminal enforcement of
120	120	the liability for those taxes.
121	121	SECTION 6. This Act takes effect September 1, 2011.