83R338 BEF-D
By: Frank H.B. No. 2779
A BILL TO BE ENTITLED
AN ACT
relating to the taxation and titling of certain off-road vehicles;
providing penalties.
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 (21) 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.
(21) "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, provided that the vehicle may be designed by
the manufacturer primarily for farming; or
(B) a motorcycle designed by the manufacturer for
off-highway use.
SECTION 2. Subchapter A, Chapter 152, Tax Code, is amended
by adding Section 152.004 to read as follows:
Sec. 152.004. APPLICABILITY OF REGISTRATION PROVISIONS TO
CERTAIN MOTOR VEHICLES. A provision of this chapter requiring a
motor vehicle to be registered or requiring a person to apply for
registration of a motor vehicle does not apply to a motor vehicle
that is not required to be registered under Chapter 502,
Transportation Code.
SECTION 3. Section 152.022, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A use tax is imposed on a motor vehicle, other than an
off-road vehicle, purchased at retail sale 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.
(a-1) A use tax is imposed on a motor vehicle that is an
off-road vehicle purchased at retail sale outside this state and
used in this state by a Texas resident or other person who is
domiciled or doing business in this state.
SECTION 4. Section 152.028, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A use tax is imposed on the operator of a motor vehicle,
other than an off-road vehicle, that was purchased tax-free under
Section 152.092 [of this code] and that is brought back into this
state for use on the public highways of this state. The tax is
imposed at the time the motor vehicle is brought back into this
state.
(a-1) A use tax is imposed on the operator of a motor vehicle
that is an off-road vehicle that was purchased tax-free under
Section 152.092 and that is brought back into this state for use in
this state. The tax is imposed at the time the motor vehicle is
brought back into this state.
SECTION 5. Section 152.0411, Tax Code, is amended by
amending Subsection (c) and adding Subsection (c-1) to read as
follows:
(c) Except as provided by Subsection (c-1), this [This]
section applies only to the sale of a vehicle that is to be titled
and registered in Texas. If a purchaser intends to register a
vehicle outside Texas, the purchaser shall comply with the terms of
Section 152.092.
(c-1) This section applies to the sale of a motor vehicle
that is an off-road vehicle that is to be titled in this state. This
section does not apply to the sale of a motor vehicle that is an
off-road vehicle that is to be titled outside this state. If a
purchaser intends to title a motor vehicle that is an off-road
vehicle outside this state, the purchaser shall comply with Section
152.092.
SECTION 6. Section 152.061, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) An owner of a motor vehicle that is an off-road vehicle
purchased for rental may furnish a rental certificate as provided
by Subsection (a). The Texas Department of Motor Vehicles by rule
shall provide procedures for accepting a rental certificate and
issuing a title for a rental off-road vehicle. A reference in this
chapter to a motor vehicle registered as a rental vehicle applies to
a rental off-road vehicle for which the owner has complied with this
section and rules adopted under this section.
SECTION 7. Section 152.082, Tax Code, is amended to read as
follows:
Sec. 152.082. SALE OF MOTOR VEHICLE TO OR USE OF MOTOR
VEHICLE BY PUBLIC AGENCY. The taxes imposed by this chapter do not
apply to the sale of a motor vehicle to or use of a motor vehicle by
a public agency if:
(1) the motor vehicle is operated with an exempt
license plate issued under Section 502.451 [502.201 or 502.206],
Transportation Code; or
(2) the motor vehicle is an off-road vehicle.
SECTION 8. Section 152.083(b), Tax Code, is amended to read
as follows:
(b) This exemption applies only if the person purchasing the
motor vehicle to be leased presents the tax assessor-collector a
form prescribed and provided by the comptroller and showing:
(1) the identification of the motor vehicle;
(2) the name and address of the lessor and the lessee;
and
(3) unless the motor vehicle is an off-road vehicle,
verification by an officer of the public agency to which the motor
vehicle will be leased that the agency will operate the vehicle with
an exempt license plate issued under Section 502.451 [502.201 or
502.206], Transportation Code.
SECTION 9. 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).
(b-1) In addition to the other requirements prescribed by
this section, to claim an exemption provided by Subsection (a) or
(b) the person purchasing, using, or leasing the machine, trailer,
[or] semitrailer, or off-road vehicle must provide an exemption
certificate with a registration number issued by the comptroller
under Section 151.1551.
(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. To claim the
exemption, the person renting the vehicle must also provide on the
certificate a registration number issued by the comptroller under
Section 151.1551.
(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 10. Section 152.102(a), Tax Code, is amended to
read as follows:
(a) A person commits an offense if the person knowingly
operates a motor vehicle on a highway of this state, or knowingly
operates a motor vehicle that is an off-road vehicle in this state,
without paying the tax imposed by this chapter on the vehicle.
SECTION 11. 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, 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, regardless of
whether the vehicle is exempt from taxation under Chapter 152, Tax
Code. This section does not apply to an off-road vehicle acquired
and sold or disposed of by a lienholder exercising a statutory or
contractual lien right with regard to the vehicle, except that this
section does apply to the purchaser of that vehicle.
SECTION 12. 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 13. 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 14. Not later than December 1, 2013, the Texas
Department of Motor Vehicles and the comptroller of public accounts
shall adopt any rules necessary to implement the changes in law made
by this Act.
SECTION 15. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2014.
(b) Section 14 of this Act takes effect September 1, 2013.