Texas 2015 - 84th Regular

Texas House Bill HB1374 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R3317 CJC-F
2	2	By: King of Uvalde H.B. No. 1374
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the appraisal for ad valorem tax purposes of certain
8	8	dealer's heavy equipment inventory.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 23.1241(a)(1), (2), (7), (8), and (9),
11	11	Tax Code, are amended to read as follows:
12	12	(1) "Dealer" means a person engaged in the business in
13	13	this state of selling[, leasing, or renting] heavy equipment. The
14	14	term does not include a bank, savings bank, savings and loan
15	15	association, credit union, or other finance company. In addition,
16	16	for purposes of taxation of a person's inventory of heavy equipment
17	17	in a tax year, the term does not include a person who renders the
18	18	person's inventory of heavy equipment for taxation in that tax year
19	19	by filing a rendition statement or property report in accordance
20	20	with Chapter 22.
21	21	(2) "Dealer's heavy equipment inventory" means all
22	22	items of heavy equipment that a dealer holds for sale at retail [,
23	23	lease, or rent] in this state [during a 12-month period]. The term
24	24	includes items of heavy equipment that are leased or rented but
25	25	subject to a purchase option by the lessee or renter.
26	26	(7) "Sales price" means:
27	27	(A) the total amount of money paid or to be paid
28	28	to a dealer for the purchase of an item of heavy equipment; or
29	29	(B) for a lease or rental with an option to
30	30	purchase, the total amount of the lease or rental payments plus any
31	31	final consideration, excluding interest.
32	32	(8) "Subsequent sale" means a dealer-financed sale of
33	33	an item of heavy equipment that, at the time of the sale, has been
34	34	the subject of a dealer-financed sale from the same dealer's heavy
35	35	equipment inventory in the same calendar year. [The term does not
36	36	include a rental or lease with an unexercised purchase option or
37	37	without a purchase option.]
38	38	(9) "Total annual sales" means the total of the[:
39	39	[(A)] sales price for each sale from a dealer's
40	40	heavy equipment inventory in a 12-month period[; and
41	41	[(B) lease and rental payments received for each
42	42	lease or rental of heavy equipment inventory in a 12-month period].
43	43	SECTION 2. Sections 23.1241(b) and (e), Tax Code, are
44	44	amended to read as follows:
45	45	(b) For the purpose of the computation of property tax:
46	46	(1) [,] the market value of a dealer's heavy equipment
47	47	inventory on January 1 is the total annual sales, less sales to
48	48	dealers, fleet transactions, and subsequent sales, for the 12-month
49	49	period corresponding to the preceding tax year, divided by 12; and
50	50	(2) a sale is considered to occur when possession of an
51	51	item of heavy equipment is transferred from the dealer to the
52	52	purchaser.
53	53	(e) A dealer is presumed to be an owner of a dealer's heavy
54	54	equipment inventory on January 1 if, in the 12-month period ending
55	55	on December 31 of the preceding year, the dealer sold[, leased, or
56	56	rented] an item of heavy equipment to a person other than a
57	57	dealer. The presumption is not rebutted by the fact that a dealer
58	58	has no item of heavy equipment physically on hand for sale from the
59	59	dealer's heavy equipment inventory on January 1.
60	60	SECTION 3. Sections 23.1242(b), (e), and (f), Tax Code, are
61	61	amended to read as follows:
62	62	(b) Except for an item of heavy equipment sold to a dealer,
63	63	an item of heavy equipment included in a fleet transaction, or an
64	64	item of heavy equipment that is the subject of a subsequent sale,
65	65	[or an item of heavy equipment that is subject to a lease or
66	66	rental,] an owner or a person who has agreed by contract to pay the
67	67	owner's current year property taxes levied against the owner's
68	68	heavy equipment inventory shall assign a unit property tax to each
69	69	item of heavy equipment sold from a dealer's heavy equipment
70	70	inventory. [In the case of a lease or rental, the owner shall
71	71	assign a unit property tax to each item of heavy equipment leased or
72	72	rented.] The unit property tax of each item of heavy equipment is
73	73	determined by multiplying the sales price of the item [or the
74	74	monthly lease or rental payment received for the item, as
75	75	applicable,] by the unit property tax factor. [If the transaction
76	76	is a lease or rental, the owner shall collect the unit property tax
77	77	from the lessee or renter at the time the lessee or renter submits
78	78	payment for the lease or rental. The owner of the equipment shall
79	79	state the amount of the unit property tax assigned as a separate
80	80	line item on an invoice.] On or before the 10th day of each month
81	81	the owner shall, together with the statement filed by the owner as
82	82	required by this section, deposit with the collector an amount
83	83	equal to the total of unit property tax assigned to all items of
84	84	heavy equipment sold[, leased, or rented] from the dealer's heavy
85	85	equipment inventory in the preceding month to which a unit property
86	86	tax was assigned. The money shall be deposited by the collector to
87	87	the credit of the owner's escrow account for prepayment of property
88	88	taxes as provided by this section. An escrow account required by
89	89	this section is used to pay property taxes levied against the
90	90	dealer's heavy equipment inventory, and the owner shall fund the
91	91	escrow account as provided by this subsection.
92	92	(e) The comptroller by rule shall adopt a dealer's heavy
93	93	equipment inventory tax statement form. Each month, a dealer shall
94	94	complete the form regardless of whether an item of heavy equipment
95	95	is sold[, leased, or rented]. A dealer may use no other form for
96	96	that purpose. The statement may include the information the
97	97	comptroller considers appropriate but shall include at least the
98	98	following:
99	99	(1) a description of each item of heavy equipment
100	100	sold, [leased, or rented] including any unique identification or
101	101	serial number affixed to the item by the manufacturer;
102	102	(2) the sales price of [or lease or rental payment
103	103	received for] the item of heavy equipment[, as applicable];
104	104	(3) the unit property tax of the item of heavy
105	105	equipment, if any; and
106	106	(4) the reason no unit property tax is assigned if no
107	107	unit property tax is assigned.
108	108	(f) On or before the 10th day of each month, a dealer shall
109	109	file with the collector the statement covering the sale[, lease, or
110	110	rental] of each item of heavy equipment sold[, leased, or rented] by
111	111	the dealer in the preceding month. On or before the 10th day of a
112	112	month following a month in which a dealer does not sell[, lease, or
113	113	rent] an item of heavy equipment, the dealer must file the statement
114	114	with the collector and indicate that no sales[, leases, or rentals]
115	115	were made in the prior month. A dealer shall file a copy of the
116	116	statement with the chief appraiser and retain documentation
117	117	relating to the disposition of each item of heavy equipment sold
118	118	[and the lease or rental of each item of heavy equipment]. A chief
119	119	appraiser or collector may examine documents held by a dealer as
120	120	provided by this subsection in the same manner, and subject to the
121	121	same conditions, as provided by Section 23.1241(g).
122	122	SECTION 4. Section 23.1241(b-1), Tax Code, is repealed.
123	123	SECTION 5. This Act applies only to ad valorem taxes imposed
124	124	for a tax year beginning on or after the effective date of this Act.
125	125	SECTION 6. This Act takes effect January 1, 2016.