82R9777 ALL-F
By: Estes S.B. No. 1280
A BILL TO BE ENTITLED
AN ACT
relating to the taxation and titling of certain off-road vehicles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 152.001, Tax Code, is amended by
amending Subdivision (3) and adding Subdivision (20) to read as
follows:
(3) "Motor vehicle [Vehicle]" includes:
(A) a self-propelled vehicle designed to
transport persons or property on a public highway;
(B) a trailer and semitrailer, including a van,
flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or
converter gear; [and]
(C) a house trailer as defined by Chapter 501,
Transportation Code; and
(D) an off-road vehicle that is not required to
be registered under Chapter 502, Transportation Code.
(20) "Off-road vehicle" means:
(A) an all-terrain vehicle or a recreational
off-highway vehicle, as those terms are defined by Section 502.001,
Transportation Code; or
(B) a motorcycle designed by the manufacturer for
off-highway use.
SECTION 2. Section 152.091, Tax Code, is amended to read as
follows:
Sec. 152.091. FARM OR TIMBER USE. (a) The taxes imposed by
this chapter do not apply to the sale or use of [a]:
(1) a farm machine, a trailer, a [or] semitrailer, or
an off-road vehicle for use primarily for farming and ranching,
including the rearing of poultry, and use in feedlots; or
(2) a machine, a trailer, a [or] semitrailer, or an
off-road vehicle for use primarily for timber operations.
(b)(1) The taxes imposed by this chapter do not apply to the
purchase of [a]:
(A) a farm machine, a trailer, a [or]
semitrailer, or an off-road vehicle that is to be leased for use
primarily for farming and ranching, including the rearing of
poultry, and use in feedlots; or
(B) a machine, a trailer, a [or] semitrailer, or
an off-road vehicle that is to be leased for use primarily for
timber operations.
(2) The exemption provided by this subsection applies
only if the person purchasing the machine, trailer, [or]
semitrailer, or off-road vehicle to be leased presents the tax
assessor-collector a form prescribed and provided by the
comptroller showing:
(A) the identification of the motor vehicle;
(B) the name and address of the lessor and the
lessee; and
(C) verification by the lessee that the machine,
trailer, [or] semitrailer, or off-road vehicle will be used
primarily for:
(i) farming and ranching, including the
rearing of poultry, and use in feedlots; or
(ii) timber operations.
(3) If a motor vehicle for which the tax has not been
paid ceases to be leased for use primarily for farming and ranching,
including the rearing of poultry, and use in feedlots or timber
operations, the owner shall notify the comptroller on a form
provided by the comptroller and shall pay the sales or use tax on
the motor vehicle based on the owner's book value of the motor
vehicle. The tax is imposed at the same percentage rate that is
provided by Section 152.021(b).
(c) The taxes imposed by this chapter do not apply to the
rental of a farm machine, a trailer, [or] a semitrailer, or an
off-road vehicle for use primarily for farming and ranching,
including the rearing of poultry, and use in feedlots, or a machine,
a trailer, [or] a semitrailer, or an off-road vehicle for use
primarily for timber operations. The tax that would have been
remitted on gross rental receipts without this exemption shall be
deemed to have been remitted for the purpose of calculating the
minimum gross rental 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.
(d) For purposes of this section, a machine or an off-road
vehicle is used "primarily for timber operations" if the machine or
off-road vehicle is a self-propelled motor vehicle that is
specially adapted to perform a specialized function in the
production of timber, including land preparation, planting,
maintenance, and gathering of trees commonly grown for commercial
timber. The term does not include a self-propelled motor vehicle
used to transport timber or timber products.
SECTION 3. Subchapter B, Chapter 501, Transportation Code,
is amended by adding Section 501.0225 to read as follows:
Sec. 501.0225. CERTIFICATE OF TITLE REQUIRED FOR OFF-ROAD
VEHICLE. A person who purchases, imports, or otherwise acquires an
off-road vehicle, as defined by Section 152.001, Tax Code, that is
not required to be registered under Chapter 502 may not operate or
permit the operation of the vehicle in this state, or sell or
dispose of the vehicle in this state, until the person obtains a
certificate of title for the vehicle. This section does not apply
to an off-road vehicle that is exempt from motor vehicle sales and
use taxation under Section 152.091, Tax Code.
SECTION 4. Section 501.0225, Transportation Code, as added
by this Act, applies only to a person who purchases, imports, or
otherwise acquires an off-road vehicle on or after the effective
date of this Act. A person who purchases, imports, or otherwise
acquires an off-road vehicle before the effective date of this Act
is governed by the law in effect immediately before the effective
date of this Act, and the former law is continued in effect for that
purpose.
SECTION 5. 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 6. This Act takes effect September 1, 2011.