84R4834 TJB-F
By: Gonzales H.B. No. 1127
A BILL TO BE ENTITLED
AN ACT
relating to the computation of total consideration for purposes of
the motor vehicle sales and use tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 152.002(d) and (e), Tax Code, are
amended to read as follows:
(d) A person who holds a vehicle lessor license under
Chapter 2301, Occupations Code, or is specifically not required to
obtain a lessor license under Section 2301.254(a) of that code may
deduct the fair market value of a replaced motor vehicle that has
been leased for longer than 180 days and is titled to another person
if:
(1) either person:
(A) holds a substantial [beneficial] ownership
interest, as determined under Section 151.107(d), in the other
person, including by:
(i) direct ownership;
(ii) common ownership; or
(iii) indirect ownership through a parent
entity, subsidiary, or affiliate [of at least 80 percent]; or
(B) acquires all of its vehicles exclusively from
franchised dealers whose franchisor shares common ownership with
the other person; and
(2) the replaced motor vehicle is offered for sale.
(e) A person who is a motor vehicle owner, is in the business
of renting motor vehicles, and holds a permit may deduct the fair
market value of a replaced motor vehicle that is titled to another
person if:
(1) either person:
(A) holds a substantial [beneficial] ownership
interest, as determined under Section 151.107(d), in the other
person, including by:
(i) direct ownership;
(ii) common ownership; or
(iii) indirect ownership through a parent
entity, subsidiary, or affiliate [of at least 80 percent]; or
(B) acquires all of its vehicles exclusively from
franchised dealers whose franchisor shares common ownership with
the other person; and
(2) the replaced motor vehicle is offered for sale.
SECTION 2. 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 3. This Act takes effect September 1, 2015.