LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 10, 2015 TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2400 by Bohac (relating to the sale of a new motor vehicle to certain manufacturers or distributors; imposing a tax.), Committee Report 1st House, Substituted Depending upon the number of vehicles that may be purchased and subject to the use tax, there would be an indeterminate revenue impact to the state. This bill would amend Chapter 152 of the Tax Code, regarding taxes on motor vehicles. The bill would amend Section 152.001 to exclude the sale of a new motor vehicle to a person who is a manufacturer or distributor, as defined by Section 2301.002 of the Occupations Code, and who acquires the vehicle for the purposes allowed under Chapter 503 of the Transportation Code, from the definition of a "retail sale." The bill would amend Section 152.027 to impose the use tax of $25 on a person issued a metal manufacturer's plate under Chapter 503 of the Transportation Code. The bill would make conforming changes elsewhere in this chapter.The bill would impose a use tax of $25, instead of the current sales tax at the rate of 6.25 percent of the taxable value, on vehicles purchased by a manufacturer for purposes allowed under Chapter 503, Transportation code. The number of vehicles that may be purchased and subject to the $25 use tax is unknown. The fiscal implications of the bill cannot be determined. This bill would take effect September 1, 2015. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts LBB Staff: UP, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 10, 2015
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2400 by Bohac (relating to the sale of a new motor vehicle to certain manufacturers or distributors; imposing a tax.), Committee Report 1st House, Substituted
TO: Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2400 by Bohac (relating to the sale of a new motor vehicle to certain manufacturers or distributors; imposing a tax.), Committee Report 1st House, Substituted
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2400 by Bohac (relating to the sale of a new motor vehicle to certain manufacturers or distributors; imposing a tax.), Committee Report 1st House, Substituted
HB2400 by Bohac (relating to the sale of a new motor vehicle to certain manufacturers or distributors; imposing a tax.), Committee Report 1st House, Substituted
Depending upon the number of vehicles that may be purchased and subject to the use tax, there would be an indeterminate revenue impact to the state.
Depending upon the number of vehicles that may be purchased and subject to the use tax, there would be an indeterminate revenue impact to the state.
This bill would amend Chapter 152 of the Tax Code, regarding taxes on motor vehicles. The bill would amend Section 152.001 to exclude the sale of a new motor vehicle to a person who is a manufacturer or distributor, as defined by Section 2301.002 of the Occupations Code, and who acquires the vehicle for the purposes allowed under Chapter 503 of the Transportation Code, from the definition of a "retail sale." The bill would amend Section 152.027 to impose the use tax of $25 on a person issued a metal manufacturer's plate under Chapter 503 of the Transportation Code. The bill would make conforming changes elsewhere in this chapter.The bill would impose a use tax of $25, instead of the current sales tax at the rate of 6.25 percent of the taxable value, on vehicles purchased by a manufacturer for purposes allowed under Chapter 503, Transportation code. The number of vehicles that may be purchased and subject to the $25 use tax is unknown. The fiscal implications of the bill cannot be determined. This bill would take effect September 1, 2015.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: UP, KK, SD
UP, KK, SD