| 1 | 1 | | 84R2929 GRM-D |
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| 2 | 2 | | By: Farias H.B. No. 350 |
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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 an exemption from the motor vehicle sales and use tax |
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| 8 | 8 | | for certain motor vehicles purchased or used by veterans with |
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| 9 | 9 | | disabilities. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter E, Chapter 152, Tax Code, is amended |
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| 12 | 12 | | by adding Section 152.094 to read as follows: |
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| 13 | 13 | | Sec. 152.094. MOTOR VEHICLES PURCHASED OR USED BY CERTAIN |
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| 14 | 14 | | VETERANS. (a) The taxes imposed by this chapter do not apply to the |
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| 15 | 15 | | sale to or use by a veteran of the United States armed forces of a |
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| 16 | 16 | | motor vehicle if the veteran: |
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| 17 | 17 | | (1) will use the vehicle only for noncommercial |
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| 18 | 18 | | purposes; and |
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| 19 | 19 | | (2) either: |
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| 20 | 20 | | (A) has a service-connected disability, as |
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| 21 | 21 | | defined by 38 U.S.C. Section 101(16), rated at least 50 percent by |
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| 22 | 22 | | the United States Department of Veterans Affairs; or |
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| 23 | 23 | | (B) at the time the veteran applies for |
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| 24 | 24 | | registration of the vehicle with the appropriate county tax |
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| 25 | 25 | | assessor-collector, intends to: |
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| 26 | 26 | | (i) transfer to the vehicle a specialty |
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| 27 | 27 | | license plate for veterans with disabilities, or set of those |
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| 28 | 28 | | plates, issued to the veteran under Section 504.202, Transportation |
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| 29 | 29 | | Code; or |
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| 30 | 30 | | (ii) place on the vehicle a specialty |
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| 31 | 31 | | license plate for veterans with disabilities, or set of those |
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| 32 | 32 | | plates, that will be issued to the veteran under Section 504.202, |
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| 33 | 33 | | Transportation Code. |
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| 34 | 34 | | (b) The comptroller shall adopt rules to ensure that a motor |
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| 35 | 35 | | vehicle exempted from taxation by this section qualifies for the |
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| 36 | 36 | | exemption. The comptroller may require a person seeking an |
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| 37 | 37 | | exemption under this section to present information establishing |
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| 38 | 38 | | the qualification for the exemption. |
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| 39 | 39 | | (c) The seller of a motor vehicle may not collect the tax |
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| 40 | 40 | | from the purchaser of the motor vehicle if the purchaser: |
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| 41 | 41 | | (1) signs at the time of the purchase an exemption |
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| 42 | 42 | | certificate that: |
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| 43 | 43 | | (A) is on a form designated by the comptroller; |
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| 44 | 44 | | and |
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| 45 | 45 | | (B) contains all of the information the |
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| 46 | 46 | | comptroller considers reasonable to establish at the time of sale |
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| 47 | 47 | | the qualification for the exemption under this section; and |
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| 48 | 48 | | (2) presents any other documentation or information |
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| 49 | 49 | | the comptroller requires by rule. |
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| 50 | 50 | | (d) The seller of a motor vehicle may rely on a properly |
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| 51 | 51 | | executed and signed exemption certificate under Subsection (c) and |
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| 52 | 52 | | does not have a duty to investigate the propriety of an exemption |
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| 53 | 53 | | certificate that is valid on the certificate's face. A seller who |
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| 54 | 54 | | relies on an exemption certificate as provided by this subsection |
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| 55 | 55 | | is not liable for the payment of motor vehicle sales taxes that |
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| 56 | 56 | | would otherwise be due as a result of a motor vehicle sale. |
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| 57 | 57 | | (e) If the comptroller determines that the sale or use of a |
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| 58 | 58 | | motor vehicle granted an exemption under this section did not |
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| 59 | 59 | | qualify for the exemption, the comptroller shall assess the tax |
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| 60 | 60 | | against the purchaser or owner of the motor vehicle in the amount |
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| 61 | 61 | | that would have been due had the exemption not been granted. |
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| 62 | 62 | | SECTION 2. As soon as possible after the effective date of |
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| 63 | 63 | | this Act, the comptroller of public accounts shall: |
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| 64 | 64 | | (1) adopt the rules required by Section 152.094(b), |
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| 65 | 65 | | Tax Code, as added by this Act; and |
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| 66 | 66 | | (2) designate the form required by Section |
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| 67 | 67 | | 152.094(c)(1)(A), Tax Code, as added by this Act. |
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| 68 | 68 | | SECTION 3. (a) The change in law made by this Act: |
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| 69 | 69 | | (1) applies only to the imposition of motor vehicle |
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| 70 | 70 | | sales tax imposed under Chapter 152, Tax Code, on the sale of a |
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| 71 | 71 | | motor vehicle that occurs on or after September 1, 2015, and the |
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| 72 | 72 | | imposition of motor vehicle use tax under Chapter 152, Tax Code, on |
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| 73 | 73 | | a motor vehicle that is registered in this state on or after |
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| 74 | 74 | | September 1, 2015; and |
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| 75 | 75 | | (2) does not affect tax liability accruing before |
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| 76 | 76 | | September 1, 2015. |
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| 77 | 77 | | (b) Tax liability accruing before September 1, 2015, |
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| 78 | 78 | | continues in effect as if this Act had not been enacted, and the |
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| 79 | 79 | | former law is continued in effect for the collection of taxes due |
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| 80 | 80 | | and for civil and criminal enforcement of the liability for those |
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| 81 | 81 | | taxes. |
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| 82 | 82 | | SECTION 4. This Act takes effect immediately if it receives |
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| 83 | 83 | | a vote of two-thirds of all the members elected to each house, as |
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| 84 | 84 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 85 | 85 | | Act does not receive the vote necessary for immediate effect, this |
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| 86 | 86 | | Act takes effect September 1, 2015. |
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