Texas 2017 - 85th Regular

Texas House Bill HB3443 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R8923 CBH-D
2	2	By: Martinez H.B. No. 3443
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to imposing a local tax on the sale or lease of a new luxury
8	8	motor vehicle in certain areas.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle C, Title 3, Tax Code, is amended by
11	11	adding Chapter 328 to read as follows:
12	12	CHAPTER 328. TAX ON SALE OR LEASE OF NEW LUXURY MOTOR VEHICLE IN
13	13	CERTAIN AREAS
14	14	Sec. 328.001. DEFINITIONS. (a) In this chapter:
15	15	(1) "Dealership" has the meaning assigned by Section
16	16	2301.002, Occupations Code.
17	17	(2) "Gross sale or lease price" means:
18	18	(A) the price at which a new luxury motor vehicle
19	19	and any accessories attached on or before sale is offered for sale,
20	20	before any discount or trade-in; and
21	21	(B) the total amount to be paid under a lease
22	22	agreement for a new luxury motor vehicle, before any discount or
23	23	trade-in.
24	24	(3) "Lease" means an agreement, other than a rental,
25	25	by a franchised dealer to give for longer than 180 days exclusive
26	26	use of a new luxury motor vehicle to another for consideration.
27	27	(4) "Lower Rio Grande Valley" means the region
28	28	included in the Lower Rio Grande Valley Development Council.
29	29	(5) "New luxury motor vehicle" means a new motor
30	30	vehicle that has a gross sale or lease price of at least $60,000.
31	31	(b) Except to the extent of conflict, words used in this
32	32	chapter and defined by Chapter 152 have the meanings assigned by
33	33	Chapter 152.
34	34	Sec. 328.002. TAX IMPOSED; RATE. (a) A tax is imposed on
35	35	each retail sale or lease of a new luxury motor vehicle by a
36	36	franchised dealer at a dealership in the Lower Rio Grande Valley.
37	37	(b) The rate of the tax is 0.2 percent of the gross sale or
38	38	lease price of the new luxury motor vehicle.
39	39	Sec. 328.003. APPLICABILITY OF TAX. (a) The tax authorized
40	40	by this chapter on the sale of a new luxury motor vehicle does not
41	41	apply to the sale of a new luxury motor vehicle unless the state tax
42	42	imposed under Chapter 152 also applies.
43	43	(b) The tax authorized by this chapter on the lease of a new
44	44	luxury motor vehicle applies to the lease of a new luxury motor
45	45	vehicle in each situation in which the transaction is not
46	46	considered a sale for purposes of the imposition of the state tax
47	47	under Chapter 152.
48	48	(c) The exemptions provided by Subchapter E, Chapter 152,
49	49	apply to the tax imposed under this chapter.
50	50	Sec. 328.004. COLLECTION OF TAX. (a) Each franchised
51	51	dealer that sells or leases a new luxury motor vehicle at a
52	52	dealership in the Lower Rio Grande Valley shall collect the tax for
53	53	the benefit of the municipality or county in which the dealership is
54	54	located.
55	55	(b) If the dealership at which the sale or lease occurred is
56	56	located in a municipality, the franchised dealer shall remit the
57	57	tax to that municipality as provided by that municipality. If the
58	58	dealership at which the sale or lease occurred is not located in a
59	59	municipality, the franchised dealer shall remit the tax to the
60	60	county in which the dealership is located as provided by that
61	61	county.
62	62	(c) The franchised dealer shall add the tax imposed by this
63	63	chapter and any tax imposed under Chapter 152 to the sale or lease
64	64	price, and when the taxes are added the total amount is a debt owed
65	65	to the franchised dealer by the purchaser or lessee until paid. If
66	66	the total amount is not paid, the unpaid amount is recoverable at
67	67	law in the same manner the original sale or lease price may be
68	68	recovered.
69	69	(d) A municipality or county to which a franchised dealer is
70	70	required to remit taxes under this chapter shall by ordinance or
71	71	order prescribe recordkeeping, reporting, and payment requirements
72	72	and penalties, including interest charges, for failure to keep
73	73	records required by the municipality or county, to report when
74	74	required, or to pay the tax when due. The attorney acting for the
75	75	municipality or county may bring suit against a franchised dealer
76	76	who fails to collect a tax under this chapter and to pay it over to
77	77	the municipality or county as required.
78	78	(e) A municipality by ordinance or a county by order may
79	79	permit a franchised dealer who is required to collect a tax under
80	80	this chapter to retain a percentage of the amount collected and
81	81	required to be reported as reimbursement to the franchised dealer
82	82	for the costs of collecting the tax. The municipality or county may
83	83	provide that the franchised dealer may retain the amount only if the
84	84	person pays the tax and files reports as required by the
85	85	municipality or county.
86	86	Sec. 328.005. USE OF REVENUE. A municipality or county may
87	87	use revenue from the tax imposed under this chapter only to
88	88	construct or maintain public roadways.
89	89	SECTION 2. As soon as possible after the effective date of
90	90	this Act, but not later than December 31, 2017, each municipality
91	91	and county to which a franchised dealer will be required to remit
92	92	taxes under Section 328.004(b), Tax Code, as added by this Act,
93	93	shall adopt any ordinances or orders necessary to govern the
94	94	collection and enforcement of the tax imposed under Chapter 328,
95	95	Tax Code, as added by this Act.
96	96	SECTION 3. This Act applies only to a sale or lease of a new
97	97	luxury motor vehicle in the Lower Rio Grande Valley on or after
98	98	January 1, 2018. A sale or lease that occurs before that date is
99	99	governed by the law in effect on the date the sale or lease
100	100	occurred, and that law is continued in effect for that purpose.
101	101	SECTION 4. This Act takes effect immediately if it receives
102	102	a vote of two-thirds of all the members elected to each house, as
103	103	provided by Section 39, Article III, Texas Constitution. If this
104	104	Act does not receive the vote necessary for immediate effect, this
105	105	Act takes effect September 1, 2017.