| 1 | 1 | | 85R19311 LHC-F |
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| 2 | 2 | | By: Bohac H.B. No. 2714 |
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| 3 | 3 | | Substitute the following for H.B. No. 2714: |
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| 4 | 4 | | By: Raymond C.S.H.B. No. 2714 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the exemption from ad valorem taxation of leased motor |
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| 10 | 10 | | vehicles that are not held primarily for the production of income by |
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| 11 | 11 | | the lessee. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. The heading to Section 11.252, Tax Code, is |
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| 14 | 14 | | amended to read as follows: |
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| 15 | 15 | | Sec. 11.252. MOTOR VEHICLES LEASED FOR [PERSONAL] USE OTHER |
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| 16 | 16 | | THAN PRODUCTION OF INCOME. |
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| 17 | 17 | | SECTION 2. Sections 11.252(b) and (d), Tax Code, are |
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| 18 | 18 | | amended to read as follows: |
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| 19 | 19 | | (b) For purposes of this section, a motor vehicle is |
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| 20 | 20 | | presumed to be used primarily for activities that do not involve the |
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| 21 | 21 | | production of income if: |
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| 22 | 22 | | (1) 50 percent or more of the miles the motor vehicle |
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| 23 | 23 | | is driven in a year are for non-income producing purposes; |
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| 24 | 24 | | (2) the motor vehicle is leased to this state or a |
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| 25 | 25 | | political subdivision of this state; or |
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| 26 | 26 | | (3) the motor vehicle: |
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| 27 | 27 | | (A) is leased to an organization that is exempt |
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| 28 | 28 | | from federal income taxation under Section 501(a), Internal Revenue |
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| 29 | 29 | | Code of 1986, as an organization described by Section 501(c)(3) of |
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| 30 | 30 | | that code; |
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| 31 | 31 | | (B) is used exclusively by the organization for |
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| 32 | 32 | | religious, educational, or charitable purposes; and |
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| 33 | 33 | | (C) would be exempt from taxation if the vehicle |
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| 34 | 34 | | were owned by the organization. |
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| 35 | 35 | | (d) In connection with the requirements and procedures |
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| 36 | 36 | | under Subsection (c), the comptroller by rule shall adopt a form to |
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| 37 | 37 | | be completed by the lessee of a motor vehicle for which the owner of |
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| 38 | 38 | | the vehicle may apply for an exemption under Subsection (a). The |
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| 39 | 39 | | form shall require a [the] lessee who is an individual to provide |
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| 40 | 40 | | the lessee's name, address, and driver's license or personal |
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| 41 | 41 | | identification certificate number. The form shall require a lessee |
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| 42 | 42 | | that is an entity described by Subsection (b) to provide the |
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| 43 | 43 | | lessee's name, address, and, if applicable, federal tax |
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| 44 | 44 | | identification number. The form shall require a lessee who is an |
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| 45 | 45 | | individual, or the authorized representative of a lessee that is an |
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| 46 | 46 | | entity described by Subsection (b), [and] to certify under oath |
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| 47 | 47 | | that the lessee does not hold the vehicle for the production of |
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| 48 | 48 | | income and that the vehicle is used primarily for activities that do |
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| 49 | 49 | | not involve the production of income. The comptroller shall |
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| 50 | 50 | | include on the form a notice of the penalties prescribed by Section |
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| 51 | 51 | | 37.10, Penal Code, for making a false statement on the form. |
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| 52 | 52 | | SECTION 3. The changes in law made by this Act apply only to |
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| 53 | 53 | | ad valorem taxes imposed for a tax year beginning on or after the |
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| 54 | 54 | | effective date of this Act. |
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| 55 | 55 | | SECTION 4. This Act takes effect September 1, 2017. |
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