83R3943 CJC-F
By: Gonzales H.B. No. 1003
A BILL TO BE ENTITLED
AN ACT
relating to the prepayment of taxes on heavy equipment that is
subject to a lease or rental.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.1242(b), Tax Code, is amended to read
as follows:
(b) Except for an item of heavy equipment sold to a dealer,
an item of heavy equipment included in a fleet transaction, an item
of heavy equipment that is the subject of a subsequent sale, or an
item of heavy equipment that is subject to a lease or rental, an
owner or a person who has agreed by contract to pay the owner's
current year property taxes levied against the owner's heavy
equipment inventory shall assign a unit property tax to each item of
heavy equipment sold from a dealer's heavy equipment inventory. In
the case of a lease or rental, the owner shall assign a unit
property tax to each item of heavy equipment leased or rented. The
unit property tax of each item of heavy equipment is determined by
multiplying the sales price of the item or the monthly lease or
rental payment received for the item, as applicable, by the unit
property tax factor. Except as otherwise provided by this
subsection, if [If] the transaction is a lease or rental, the owner
shall collect the unit property tax from the lessee or renter at the
time the lessee or renter submits payment for the lease or
rental. The owner of the equipment shall state the amount of the
unit property tax assigned as a separate line item on an
invoice. If the item of heavy equipment is leased or rented to the
state or a political subdivision of the state, the owner of the
equipment may not collect the unit property tax from the lessee or
renter and may not include the amount of the unit property tax
assigned as a separate line item on an invoice provided to the
lessee or renter. On or before the 10th day of each month the owner
shall, together with the statement filed by the owner as required by
this section, deposit with the collector an amount equal to the
total of unit property tax assigned to all items of heavy equipment
sold, leased, or rented from the dealer's heavy equipment inventory
in the preceding month to which a unit property tax was
assigned. The money shall be deposited by the collector to the
credit of the owner's escrow account for prepayment of property
taxes as provided by this section. An escrow account required by
this section is used to pay property taxes levied against the
dealer's heavy equipment inventory, and the owner shall fund the
escrow account as provided by this subsection.
SECTION 2. The change in law made by this Act applies only
to the collection of taxes by an owner of heavy equipment from
certain lessees or renters of that equipment that become due on or
after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2013.