85R19311 LHC-F
By: Bohac H.B. No. 2714
Substitute the following for H.B. No. 2714:
By: Raymond C.S.H.B. No. 2714
A BILL TO BE ENTITLED
AN ACT
relating to the exemption from ad valorem taxation of leased motor
vehicles that are not held primarily for the production of income by
the lessee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 11.252, Tax Code, is
amended to read as follows:
Sec. 11.252. MOTOR VEHICLES LEASED FOR [PERSONAL] USE OTHER
THAN PRODUCTION OF INCOME.
SECTION 2. Sections 11.252(b) and (d), Tax Code, are
amended to read as follows:
(b) For purposes of this section, a motor vehicle is
presumed to be used primarily for activities that do not involve the
production of income if:
(1) 50 percent or more of the miles the motor vehicle
is driven in a year are for non-income producing purposes;
(2) the motor vehicle is leased to this state or a
political subdivision of this state; or
(3) the motor vehicle:
(A) is leased to an organization that is exempt
from federal income taxation under Section 501(a), Internal Revenue
Code of 1986, as an organization described by Section 501(c)(3) of
that code;
(B) is used exclusively by the organization for
religious, educational, or charitable purposes; and
(C) would be exempt from taxation if the vehicle
were owned by the organization.
(d) In connection with the requirements and procedures
under Subsection (c), the comptroller by rule shall adopt a form to
be completed by the lessee of a motor vehicle for which the owner of
the vehicle may apply for an exemption under Subsection (a). The
form shall require a [the] lessee who is an individual to provide
the lessee's name, address, and driver's license or personal
identification certificate number. The form shall require a lessee
that is an entity described by Subsection (b) to provide the
lessee's name, address, and, if applicable, federal tax
identification number. The form shall require a lessee who is an
individual, or the authorized representative of a lessee that is an
entity described by Subsection (b), [and] to certify under oath
that the lessee does not hold the vehicle for the production of
income and that the vehicle is used primarily for activities that do
not involve the production of income. The comptroller shall
include on the form a notice of the penalties prescribed by Section
37.10, Penal Code, for making a false statement on the form.
SECTION 3. The changes in law made by this Act apply only to
ad valorem taxes imposed for a tax year beginning on or after the
effective date of this Act.
SECTION 4. This Act takes effect September 1, 2017.