85R1239 CJC-D
By: Button, Bonnen of Brazoria, H.B. No. 1346
Johnson of Dallas
A BILL TO BE ENTITLED
AN ACT
relating to the date for prepayment of taxes on a dealer's heavy
equipment inventory.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 23.1242(b) and (f), Tax Code, are
amended to read as follows:
(b) Except for an item of heavy equipment sold to a dealer,
an item of heavy equipment included in a fleet transaction, an item
of heavy equipment that is the subject of a subsequent sale, or an
item of heavy equipment that is subject to a lease or rental, an
owner or a person who has agreed by contract to pay the owner's
current year property taxes levied against the owner's heavy
equipment inventory shall assign a unit property tax to each item of
heavy equipment sold from a dealer's heavy equipment inventory. In
the case of a lease or rental, the owner shall assign a unit
property tax to each item of heavy equipment leased or rented. The
unit property tax of each item of heavy equipment is determined by
multiplying the sales price of the item or the monthly lease or
rental payment received for the item, as applicable, by the unit
property tax factor. If the transaction is a lease or rental, the
owner shall collect the unit property tax from the lessee or renter
at the time the lessee or renter submits payment for the lease or
rental. The owner of the equipment shall state the amount of the
unit property tax assigned as a separate line item on an
invoice. On or before the 20th [10th] day of each month the owner
shall, together with the statement filed by the owner as required by
this section, deposit with the collector an amount equal to the
total of unit property tax assigned to all items of heavy equipment
sold, leased, or rented from the dealer's heavy equipment inventory
in the preceding month to which a unit property tax was
assigned. The money shall be deposited by the collector to the
credit of the owner's escrow account for prepayment of property
taxes as provided by this section. An escrow account required by
this section is used to pay property taxes levied against the
dealer's heavy equipment inventory, and the owner shall fund the
escrow account as provided by this subsection.
(f) On or before the 20th [10th] day of each month, a dealer
shall file with the collector the statement covering the sale,
lease, or rental of each item of heavy equipment sold, leased, or
rented by the dealer in the preceding month. On or before the 20th
[10th] day of a month following a month in which a dealer does not
sell, lease, or rent an item of heavy equipment, the dealer must
file the statement with the collector and indicate that no sales,
leases, or rentals were made in the prior month. A dealer shall
file a copy of the statement with the chief appraiser and retain
documentation relating to the disposition of each item of heavy
equipment sold and the lease or rental of each item of heavy
equipment. A chief appraiser or collector may examine documents
held by a dealer as provided by this subsection in the same manner,
and subject to the same conditions, as provided by Section
23.1241(g).
SECTION 2. The change in law made by this Act applies to a
dealer's heavy equipment inventory tax statement required to be
filed on or after the effective date of this Act. A dealer's heavy
equipment inventory tax statement required to be filed before the
effective date of this Act is governed by the law in effect on the
date the statement was required to be filed, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.