Texas 2019 - 86th Regular

Texas House Bill HB2872 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R29608 CJC-F
2		-	By: Burrows, Murphy, Springer H.B. No. 2872
	1	+	86R23697 CJC-F
	2	+	By: Burrows, Murphy H.B. No. 2872
	3	+	Substitute the following for H.B. No. 2872:
	4	+	By: Murphy C.S.H.B. No. 2872
3	5
4	6
5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to the collection, remittance, and administration of
8	10		certain taxes on motor vehicles rented through a marketplace rental
9	11		provider.
10	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	13		SECTION 1. Section 334.105, Local Government Code, is
12	14		amended by adding Subsection (c) to read as follows:
13	15		(c) Notwithstanding Subsections (a) and (b), if a motor
14	16		vehicle subject to the tax imposed under this subchapter is rented
15	17		through a marketplace rental provider, the marketplace rental
16	18		provider shall collect the tax for the benefit of the municipality
17	19		or county. The marketplace rental provider shall add the tax
18	20		imposed under this subchapter, if applicable, and the gross rental
19	21		receipts tax imposed by Chapter 152, Tax Code, to the rental charge,
20	22		and the sum of the taxes is part of the rental charge, is a debt owed
21	23		to the marketplace rental provider by the person renting the
22	24		vehicle, and is recoverable at law in the same manner as the rental
23	25		charge.
24	26		SECTION 2. Section 334.109, Local Government Code, is
25	27		amended to read as follows:
26	28		Sec. 334.109. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
27	29		gross receipts of an owner of a motor vehicle or, if the motor
28	30		vehicle is rented through a marketplace rental provider, of the
29	31		provider, from the rental of the motor vehicle are presumed to be
30	32		subject to the tax imposed by this subchapter, except for gross
31	33		receipts for which the owner or marketplace rental provider has
32	34		accepted in good faith a properly completed exemption certificate.
33	35		SECTION 3. Section 334.110(a), Local Government Code, is
34	36		amended to read as follows:
35	37		(a) The owner of a motor vehicle used for rental purposes
36	38		who is required to file a report under this subchapter or, if the
37	39		motor vehicle is rented through a marketplace rental provider and
38	40		the provider is required to file a report under this subchapter, the
39	41		provider, shall keep for four years records and supporting
40	42		documents containing the following information on the amount of:
41	43		(1) gross rental receipts received from the rental of
42	44		the motor vehicle; and
43	45		(2) the tax imposed under this subchapter and paid to
44	46		the municipality or county by the owner or the marketplace rental
45	47		provider, as applicable, on each motor vehicle used for rental
46	48		purposes by the owner.
47	49		SECTION 4. Section 334.111(a), Local Government Code, is
48	50		amended to read as follows:
49	51		(a) An owner of a motor vehicle required to file a report
50	52		under this subchapter or, if applicable, a marketplace rental
51	53		provider required to file a report under this subchapter commits an
52	54		offense if the owner or provider fails to make and retain complete
53	55		records for the four-year period required by Section 334.110.
54	56		SECTION 5. Section 334.113, Local Government Code, is
55	57		amended by amending Subsection (a) and adding Subsections (a-1) and
56	58		(a-2) to read as follows:
57	59		(a) Except as otherwise provided by this section or another
58	60		provision of this subchapter, the [The] owner of a motor vehicle
59	61		required to collect the tax imposed under this subchapter shall
60	62		report and pay [send] the taxes collected to the municipality or
61	63		county as provided by the ordinance or order imposing the tax.
62	64		(a-1) Except as provided by Subsection (a-2), if a
63	65		marketplace rental provider collects the tax imposed under this
64	66		subchapter, the marketplace rental provider shall report and pay
65	67		the taxes collected to the municipality or county as provided by the
66	68		ordinance or order imposing the tax. The marketplace rental
67	69		provider shall certify to the owner of a motor vehicle rented
68	70		through the provider that the provider has collected, reported, and
69	71		paid the tax to the municipality or county. An owner who in good
70	72		faith accepts the marketplace rental provider's certification is
71	73		not required to collect, report, or pay the tax to the municipality
72	74		or county.
73	75		(a-2) The owner of a motor vehicle rented through a
74	76		marketplace rental provider may elect to report and pay the tax
75	77		imposed under this subchapter to the municipality or county. If the
76	78		owner elects to report and pay the tax under this subsection:
77	79		(1) the owner must:
78	80		(A) register as required by Section 152.065, Tax
79	81		Code; and
80	82		(B) inform the marketplace rental provider in
81	83		writing of the election; and
82	84		(2) the marketplace rental provider shall forward the
83	85		tax collected by the provider to the owner.
84	86		SECTION 6. Section 152.001, Tax Code, is amended by
85	87		amending Subdivision (8) and adding Subdivision (21) to read as
86	88		follows:
87		-	(8) "Gross rental receipts" means value received or
88		-	promised as consideration to the owner of a motor vehicle or the
89		-	marketplace rental provider for rental of the vehicle, but does not
90		-	include:
91		-	(A) separately stated charges for insurance;
	89	+	(8) "Gross rental receipts" means the total amount
	90	+	paid or to be paid [value received or promised as consideration to
	91	+	the owner of a motor vehicle] for the rental of a motor [the]
	92	+	vehicle, but does not include:
	93	+	(A) separately stated charges for insurance that
	94	+	is not required for the rental of the motor vehicle and that is
	95	+	purchased from:
	96	+	(i) the owner of the motor vehicle; or
	97	+	(ii) if the motor vehicle is rented through
	98	+	a marketplace rental provider, the provider;
92	99		(B) charges for damages to the motor vehicle
93	100		occurring during the rental agreement period;
94	101		(C) separately stated charges for motor fuel sold
95	102		by the owner of the motor vehicle; or
96	103		(D) discounts.
97	104		(21) "Marketplace rental provider" means a person who:
98	105		(A) operates any type of marketplace, including a
99	106		store with a physical location, an Internet website, a software or
100	107		mobile application, or a catalog, by which the owner of a motor
101	108		vehicle lists, markets, or advertises the owner's motor vehicle for
102	109		rental by others for consideration in this state;
103	110		(B) facilitates the rental of the owner's motor
104	111		vehicle by another person by communicating between the owner and
105	112		the other person the terms of the agreement and the acceptance of
106	113		those terms; and
107	114		(C) directly or indirectly collects or processes
108	115		the receipts or rental charges paid by the person renting the motor
109	116		vehicle for the owner of the motor vehicle.
110	117		SECTION 7. Section 152.045, Tax Code, is amended to read as
111	118		follows:
112	119		Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS.
113	120		(a) Except as otherwise provided by this section or another
114	121		provision of [inconsistent with this chapter and rules adopted
115	122		under] this chapter, an owner of a motor vehicle subject to the tax
116	123		on gross rental receipts shall collect, report, and pay the tax to
117	124		the comptroller in the same manner as the tax under Chapter 151
118	125		[Limited Sales, Excise and Use Tax] is collected, reported, and
119	126		paid by a retailer [retailers] under that chapter [Chapter 151 of
120	127		this code].
121	128		(a-1) Except as provided by Subsection (a-2), if the motor
122	129		vehicle is rented through a marketplace rental provider, the
123	130		marketplace rental provider shall collect, report, and pay the tax
124	131		on gross rental receipts to the comptroller in the manner
125	132		prescribed by Subsection (a). The marketplace rental provider
126	133		shall certify to the owner of a motor vehicle rented through the
127	134		provider that the provider has collected, reported, and paid the
128	135		tax. An owner who in good faith accepts the marketplace rental
129	136		provider's certification is not required to collect, report, or pay
130	137		the tax.
131	138		(a-2) The owner of a motor vehicle rented through a
132	139		marketplace rental provider may elect to report and pay the tax on
133	140		gross rental receipts to the comptroller. If the owner elects to
134	141		report and pay the tax under this subsection:
135	142		(1) the owner must:
136	143		(A) register as required by Section 152.065; and
137	144		(B) inform the marketplace rental provider in
138	145		writing of the election; and
139	146		(2) the marketplace rental provider shall forward the
140	147		tax collected by the provider to the owner.
141	148		(b) The owner of a motor vehicle subject to the tax on gross
142	149		rental receipts or, if the motor vehicle is rented through a
143	150		marketplace rental provider, the provider, shall add the tax to the
144	151		rental charge, and when added, the tax is:
145	152		(1) a part of the rental charge;
146	153		(2) a debt owed to the motor vehicle owner or
147	154		marketplace rental provider, as applicable, by the person renting
148	155		the vehicle; and
149	156		(3) recoverable at law in the same manner as the rental
150	157		charge.
151	158		(c) The comptroller may proceed against a person renting a
152	159		motor vehicle, the owner of the rented motor vehicle, or the
153	160		marketplace rental provider, as applicable, for any unpaid gross
154	161		rental receipts tax.
155	162		(d) In addition to any other penalty provided by law, the
156	163		owner of a motor vehicle subject to the tax on gross rental receipts
157	164		who is required to file a report as provided by this chapter and who
158	165		fails to timely file the report shall pay a penalty of $50. If the
159	166		motor vehicle is rented through a marketplace rental provider and
160	167		the provider is required to file a report under this chapter but
161	168		fails to timely file the report, the provider shall pay a penalty of
162	169		$50. The penalty provided by this subsection is assessed without
163	170		regard to whether the taxpayer subsequently files the report or
164	171		whether any taxes were due from the taxpayer for the reporting
165	172		period under the required report.
166	173		SECTION 8. Section 152.046(b), Tax Code, is amended to read
167	174		as follows:
168	175		(b) An owner of a motor vehicle on which the motor vehicle
169	176		sales or use tax has been paid who subsequently uses the vehicle for
170	177		rental [shall collect the gross rental receipts tax imposed by this
171	178		chapter from the person renting the vehicle. The owner] may credit
172	179		an amount equal to the motor vehicle sales or use tax paid by the
173	180		owner to the comptroller against the amount of gross rental
174	181		receipts due from the owner. This credit is not transferable and
175	182		cannot be applied against tax due and payable from the rental of
176	183		another vehicle belonging to the same owner.
177	184		SECTION 9. Section 152.063(b), Tax Code, is amended to read
178	185		as follows:
179	186		(b) Except as otherwise provided by Section 111.0041:
180	187		(1) the [The] owner of a motor vehicle used for rental
181	188		purposes shall keep for at least four years after the purchase of
182	189		the [a] motor vehicle records and supporting documents containing
183	190		[the following] information on the amount of:
184	191		(A) [(1)] total consideration for the motor
185	192		vehicle; and
186	193		(B) [(2)] motor vehicle sales or use tax paid on
187	194		the motor vehicle; and
188	195		(2) the owner of a motor vehicle used for rental
189	196		purposes and, if the motor vehicle is rented through a marketplace
190	197		rental provider, the provider, shall keep for at least four years
191	198		supporting documents containing information on the amount of:
192	199		(A) [(3)] gross rental receipts received by the
193	200		owner or provider, as applicable, from the rental of the motor
194	201		vehicle; and
195	202		(B) [(4)] gross rental receipts tax paid to the
196	203		comptroller by the owner or provider, as applicable, on each motor
197	204		vehicle used for rental purposes by the owner.
198	205		SECTION 10. Section 152.065, Tax Code, is amended to read as
199	206		follows:
200	207		Sec. 152.065. REQUIRED PERMITS. A motor vehicle owner or a
201	208		marketplace rental provider required to collect, report, and pay a
202	209		tax on gross rental receipts imposed by this chapter and a seller
203	210		required to collect, report, and pay a tax on a seller-financed sale
204	211		shall register as a retailer with the comptroller in the same manner
205	212		as is required of a retailer under Subchapter F, Chapter 151.
206	213		SECTION 11. Subchapter D, Chapter 152, Tax Code, is amended
207	214		by adding Section 152.070 to read as follows:
208	215		Sec. 152.070. MARKETPLACE RENTAL PROVIDER'S REPORT. A
209	216		marketplace rental provider shall send to the owner of a motor
210	217		vehicle that is rented through the provider a report each month that
211	218		shows the amount of tax collected, reported, and paid for each motor
212	219		vehicle that the owner owns and that is rented through the provider.
213	220		The provider is not required to send the report to an owner who
214	221		elects to report and pay the tax under Section 152.045(a-2).
215	222		SECTION 12. This Act applies only to a rental agreement for
216	223		the rental of a motor vehicle entered into on or after the effective
217	224		date of this Act. A rental agreement for the rental of a motor
218	225		vehicle entered into before the effective date of this Act is
219	226		governed by the law in effect on the date the rental agreement was
220	227		entered into, and the former law is continued in effect for the
221	228		collection of taxes due and for civil and criminal enforcement of
222	229		the liability for those taxes.
223	230		SECTION 13. This Act takes effect September 1, 2019.