| 1 | 1 | | By: Taylor of Collin S.B. No. 1125 |
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| 2 | 2 | | (In the Senate - Filed March 10, 2015; March 17, 2015, read |
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| 3 | 3 | | first time and referred to Committee on Finance; April 16, 2015, |
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| 4 | 4 | | reported adversely, with favorable Committee Substitute by the |
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| 5 | 5 | | following vote: Yeas 8, Nays 0; April 16, 2015, sent to printer.) |
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| 6 | 6 | | Click here to see the committee vote |
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| 7 | 7 | | COMMITTEE SUBSTITUTE FOR S.B. No. 1125 By: Nichols |
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| 8 | 8 | | |
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| 9 | 9 | | |
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| 10 | 10 | | A BILL TO BE ENTITLED |
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| 11 | 11 | | AN ACT |
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| 12 | 12 | | relating to the application of the motor vehicle sales tax to the |
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| 13 | 13 | | sale of a new motor vehicle to certain manufacturers or |
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| 14 | 14 | | distributors. |
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| 15 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 16 | 16 | | SECTION 1. Section 152.001(2), Tax Code, is amended to read |
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| 17 | 17 | | as follows: |
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| 18 | 18 | | (2) "Retail sale" means a sale of a motor vehicle |
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| 19 | 19 | | except: |
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| 20 | 20 | | (A) the sale of a new motor vehicle in which the |
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| 21 | 21 | | purchaser is a franchised dealer who is authorized by law and by |
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| 22 | 22 | | franchise agreement to offer the vehicle for sale as a new motor |
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| 23 | 23 | | vehicle and who acquires the vehicle either for the exclusive |
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| 24 | 24 | | purpose of sale in the manner provided by law or for purposes |
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| 25 | 25 | | allowed under Chapter 503, Transportation Code; |
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| 26 | 26 | | (B) the sale of a vehicle other than a new motor |
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| 27 | 27 | | vehicle in which the purchaser is a dealer who holds a dealer's |
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| 28 | 28 | | general distinguishing number issued under Chapter 503, |
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| 29 | 29 | | Transportation Code, and who acquires the vehicle either for the |
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| 30 | 30 | | exclusive purpose of resale in the manner provided by law or for |
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| 31 | 31 | | purposes allowed under Chapter 503, Transportation Code; [or] |
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| 32 | 32 | | (C) the sale to a franchised dealer of a new motor |
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| 33 | 33 | | vehicle removed from the franchised dealer's inventory for the |
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| 34 | 34 | | purpose of entering into a contract to lease the vehicle to another |
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| 35 | 35 | | person if, immediately after executing the lease contract, the |
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| 36 | 36 | | franchised dealer transfers title of the vehicle and assigns the |
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| 37 | 37 | | lease contract to the lessor of the vehicle; or |
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| 38 | 38 | | (D) the sale of a new motor vehicle in which the |
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| 39 | 39 | | purchaser is a manufacturer or distributor as those terms are |
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| 40 | 40 | | defined by Section 2301.002, Occupations Code, who acquires the |
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| 41 | 41 | | motor vehicle either for the exclusive purpose of sale in the |
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| 42 | 42 | | manner provided by law or for purposes allowed under Section |
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| 43 | 43 | | 503.064, Transportation Code. |
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| 44 | 44 | | SECTION 2. The change in law made by this Act does not |
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| 45 | 45 | | affect tax liability accruing before the effective date of this |
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| 46 | 46 | | Act. That liability continues in effect as if this Act had not been |
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| 47 | 47 | | enacted, and the former law is continued in effect for the |
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| 48 | 48 | | collection of taxes due and for civil and criminal enforcement of |
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| 49 | 49 | | the liability for those taxes. |
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| 50 | 50 | | SECTION 3. This Act takes effect September 1, 2015. |
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| 51 | 51 | | * * * * * |
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