By: Frank H.B. No. 3352
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. STUDY REQUIRED. (a) The comptroller of public
accounts shall conduct a study of the fiscal effect, to both this
state and its motorcycle industry, of the improper avoidance of the
use tax due on certain off-road vehicles purchased in other states.
(b) The study must include:
(1) an evaluation of the provisions of current Texas
law, and the improper practices by out of state motorcycle dealers,
which allow for the high incidence of improper avoidance;
(2) development of an estimate of the total amount of
revenues owed but not collected in this state, and the total number
of jobs lost in this state, due to the high incidence of improper
avoidance and improper competitive practices by out of state
motorcycle dealers;
(3) an evaluation of the manner in which the laws and
enforcement practices of other states avoid this high incidence of
improper avoidance in those states;
(4) identification of, and pursuit if reasonable, of
any potential actions within the comptroller's current authority
which could significantly lower the rate of avoidance and protect
the Texas motorcycle industry from improper competition from out of
state motorcycle dealers; and
(5) evaluation of potential changes to current law
which could lower the rate of avoidance and protect the Texas
motorcycle industry from improper competition from out of state
motorcycle dealers, including the potential shift of certain
off-road vehicles from the sales and use tax to the motor vehicle
tax.
SECTION 2. REPORT OF STUDY RESULTS. Not later than December
1, 2013, the comptroller of public accounts shall submit a report of
the results of the study and any resulting recommendations to the
House Committee on Ways and Means and the Senate Committee on
Finance.
SECTION 3. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2013.