| 1 | 1 | | 84R4834 TJB-F |
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| 2 | 2 | | By: Gonzales H.B. No. 1127 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the computation of total consideration for purposes of |
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| 8 | 8 | | the motor vehicle sales and use tax. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 152.002(d) and (e), Tax Code, are |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (d) A person who holds a vehicle lessor license under |
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| 13 | 13 | | Chapter 2301, Occupations Code, or is specifically not required to |
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| 14 | 14 | | obtain a lessor license under Section 2301.254(a) of that code may |
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| 15 | 15 | | deduct the fair market value of a replaced motor vehicle that has |
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| 16 | 16 | | been leased for longer than 180 days and is titled to another person |
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| 17 | 17 | | if: |
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| 18 | 18 | | (1) either person: |
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| 19 | 19 | | (A) holds a substantial [beneficial] ownership |
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| 20 | 20 | | interest, as determined under Section 151.107(d), in the other |
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| 21 | 21 | | person, including by: |
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| 22 | 22 | | (i) direct ownership; |
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| 23 | 23 | | (ii) common ownership; or |
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| 24 | 24 | | (iii) indirect ownership through a parent |
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| 25 | 25 | | entity, subsidiary, or affiliate [of at least 80 percent]; or |
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| 26 | 26 | | (B) acquires all of its vehicles exclusively from |
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| 27 | 27 | | franchised dealers whose franchisor shares common ownership with |
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| 28 | 28 | | the other person; and |
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| 29 | 29 | | (2) the replaced motor vehicle is offered for sale. |
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| 30 | 30 | | (e) A person who is a motor vehicle owner, is in the business |
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| 31 | 31 | | of renting motor vehicles, and holds a permit may deduct the fair |
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| 32 | 32 | | market value of a replaced motor vehicle that is titled to another |
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| 33 | 33 | | person if: |
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| 34 | 34 | | (1) either person: |
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| 35 | 35 | | (A) holds a substantial [beneficial] ownership |
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| 36 | 36 | | interest, as determined under Section 151.107(d), in the other |
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| 37 | 37 | | person, including by: |
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| 38 | 38 | | (i) direct ownership; |
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| 39 | 39 | | (ii) common ownership; or |
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| 40 | 40 | | (iii) indirect ownership through a parent |
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| 41 | 41 | | entity, subsidiary, or affiliate [of at least 80 percent]; or |
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| 42 | 42 | | (B) acquires all of its vehicles exclusively from |
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| 43 | 43 | | franchised dealers whose franchisor shares common ownership with |
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| 44 | 44 | | the other person; and |
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| 45 | 45 | | (2) the replaced motor vehicle is offered for sale. |
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| 46 | 46 | | SECTION 2. The change in law made by this Act does not |
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| 47 | 47 | | affect tax liability accruing before the effective date of this |
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| 48 | 48 | | Act. That liability continues in effect as if this Act had not been |
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| 49 | 49 | | enacted, and the former law is continued in effect for the |
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| 50 | 50 | | collection of taxes due and for civil and criminal enforcement of |
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| 51 | 51 | | the liability for those taxes. |
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| 52 | 52 | | SECTION 3. This Act takes effect September 1, 2015. |
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