85R8923 CBH-D
By: Martinez H.B. No. 3443
A BILL TO BE ENTITLED
AN ACT
relating to imposing a local tax on the sale or lease of a new luxury
motor vehicle in certain areas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
adding Chapter 328 to read as follows:
CHAPTER 328. TAX ON SALE OR LEASE OF NEW LUXURY MOTOR VEHICLE IN
CERTAIN AREAS
Sec. 328.001. DEFINITIONS. (a) In this chapter:
(1) "Dealership" has the meaning assigned by Section
2301.002, Occupations Code.
(2) "Gross sale or lease price" means:
(A) the price at which a new luxury motor vehicle
and any accessories attached on or before sale is offered for sale,
before any discount or trade-in; and
(B) the total amount to be paid under a lease
agreement for a new luxury motor vehicle, before any discount or
trade-in.
(3) "Lease" means an agreement, other than a rental,
by a franchised dealer to give for longer than 180 days exclusive
use of a new luxury motor vehicle to another for consideration.
(4) "Lower Rio Grande Valley" means the region
included in the Lower Rio Grande Valley Development Council.
(5) "New luxury motor vehicle" means a new motor
vehicle that has a gross sale or lease price of at least $60,000.
(b) Except to the extent of conflict, words used in this
chapter and defined by Chapter 152 have the meanings assigned by
Chapter 152.
Sec. 328.002. TAX IMPOSED; RATE. (a) A tax is imposed on
each retail sale or lease of a new luxury motor vehicle by a
franchised dealer at a dealership in the Lower Rio Grande Valley.
(b) The rate of the tax is 0.2 percent of the gross sale or
lease price of the new luxury motor vehicle.
Sec. 328.003. APPLICABILITY OF TAX. (a) The tax authorized
by this chapter on the sale of a new luxury motor vehicle does not
apply to the sale of a new luxury motor vehicle unless the state tax
imposed under Chapter 152 also applies.
(b) The tax authorized by this chapter on the lease of a new
luxury motor vehicle applies to the lease of a new luxury motor
vehicle in each situation in which the transaction is not
considered a sale for purposes of the imposition of the state tax
under Chapter 152.
(c) The exemptions provided by Subchapter E, Chapter 152,
apply to the tax imposed under this chapter.
Sec. 328.004. COLLECTION OF TAX. (a) Each franchised
dealer that sells or leases a new luxury motor vehicle at a
dealership in the Lower Rio Grande Valley shall collect the tax for
the benefit of the municipality or county in which the dealership is
located.
(b) If the dealership at which the sale or lease occurred is
located in a municipality, the franchised dealer shall remit the
tax to that municipality as provided by that municipality. If the
dealership at which the sale or lease occurred is not located in a
municipality, the franchised dealer shall remit the tax to the
county in which the dealership is located as provided by that
county.
(c) The franchised dealer shall add the tax imposed by this
chapter and any tax imposed under Chapter 152 to the sale or lease
price, and when the taxes are added the total amount is a debt owed
to the franchised dealer by the purchaser or lessee until paid. If
the total amount is not paid, the unpaid amount is recoverable at
law in the same manner the original sale or lease price may be
recovered.
(d) A municipality or county to which a franchised dealer is
required to remit taxes under this chapter shall by ordinance or
order prescribe recordkeeping, reporting, and payment requirements
and penalties, including interest charges, for failure to keep
records required by the municipality or county, to report when
required, or to pay the tax when due. The attorney acting for the
municipality or county may bring suit against a franchised dealer
who fails to collect a tax under this chapter and to pay it over to
the municipality or county as required.
(e) A municipality by ordinance or a county by order may
permit a franchised dealer who is required to collect a tax under
this chapter to retain a percentage of the amount collected and
required to be reported as reimbursement to the franchised dealer
for the costs of collecting the tax. The municipality or county may
provide that the franchised dealer may retain the amount only if the
person pays the tax and files reports as required by the
municipality or county.
Sec. 328.005. USE OF REVENUE. A municipality or county may
use revenue from the tax imposed under this chapter only to
construct or maintain public roadways.
SECTION 2. As soon as possible after the effective date of
this Act, but not later than December 31, 2017, each municipality
and county to which a franchised dealer will be required to remit
taxes under Section 328.004(b), Tax Code, as added by this Act,
shall adopt any ordinances or orders necessary to govern the
collection and enforcement of the tax imposed under Chapter 328,
Tax Code, as added by this Act.
SECTION 3. This Act applies only to a sale or lease of a new
luxury motor vehicle in the Lower Rio Grande Valley on or after
January 1, 2018. A sale or lease that occurs before that date is
governed by the law in effect on the date the sale or lease
occurred, and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.