Texas House Bill HB3352

Texas 2013 - 83rd Regular

Caption

Relating to a study and possible action regarding the improper avoidance of the use tax due on certain off-road vehicles purchased in other states.

Impact

The bill mandates a thorough examination of current Texas laws that may inadvertently facilitate the high rate of tax avoidance. This includes identifying improper practices by out-of-state dealers and estimating the revenue that Texas might be losing as a result. The study aims not only to diagnose the problem but also to explore potential legal modifications that could mitigate these avoidance practices. The findings and recommendations from this study are crucial for ensuring a level playing field for Texas motorcycle dealers and protecting state revenues.

Summary

House Bill 3352 is focused on conducting a comprehensive study regarding the improper avoidance of the use tax on certain off-road vehicles acquired from out-of-state dealers. The bill stipulates that the comptroller of public accounts shall carry out an investigation to evaluate the fiscal impact on the state and the motorcycle industry in Texas related to this issue. The need for the study arises from concerns that improper tax avoidance practices by out-of-state motorcycle dealers are detrimentally affecting local revenue and job preservation in Texas.

Sentiment

The sentiment around HB3352 is generally supportive, as stakeholders in the local motorcycle industry express concerns regarding out-of-state competition that undermines their business viability. Lawmakers backing the bill believe that addressing the tax avoidance issues will bolster the local industry and support job retention. However, there are rising apprehensions about potential legislative changes that may emerge from the study, which could lead to increased taxation or regulation that some in the industry may find burdensome.

Contention

While the bill is aimed at addressing tax avoidance, there are concerns that it could lead to increased scrutiny and regulation of off-road vehicle sales. The resolution of these issues may lead to policy recommendations that some stakeholders view as inhibiting the competitive flexibility necessary for a healthy marketplace. Therefore, while the intent is to generate equitable conditions for Texas dealers, the implications of the study could spark debate regarding the extent of regulations imposed on both local and out-of-state dealers.