Texas 2019 - 86th Regular

Texas Senate Bill SB1578 Compare Versions

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

Old	New	Differences
1	1	86R11158 CJC-F
2	2	By: Alvarado S.B. No. 1578
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the collection, remittance, and administration of
8	8	certain taxes on motor vehicles rented through a marketplace rental
9	9	provider.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 334.105, Local Government Code, is
12	12	amended by adding Subsection (c) to read as follows:
13	13	(c) Notwithstanding Subsections (a) and (b), if a motor
14	14	vehicle subject to the tax imposed under this subchapter is rented
15	15	through a marketplace rental provider, the marketplace rental
16	16	provider shall collect the tax for the benefit of the municipality
17	17	or county. The marketplace rental provider shall add the tax
18	18	imposed under this subchapter, if applicable, and the gross rental
19	19	receipts tax imposed by Chapter 152, Tax Code, to the rental charge,
20	20	and the sum of the taxes is part of the rental charge, is a debt owed
21	21	to the marketplace rental provider by the person renting the
22	22	vehicle, and is recoverable at law in the same manner as the rental
23	23	charge.
24	24	SECTION 2. Section 334.109, Local Government Code, is
25	25	amended to read as follows:
26	26	Sec. 334.109. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
27	27	gross receipts of an owner of a motor vehicle or, if the motor
28	28	vehicle is rented through a marketplace rental provider, of the
29	29	provider, from the rental of the motor vehicle are presumed to be
30	30	subject to the tax imposed by this subchapter, except for gross
31	31	receipts for which the owner or marketplace rental provider has
32	32	accepted in good faith a properly completed exemption certificate.
33	33	SECTION 3. Section 334.110(a), Local Government Code, is
34	34	amended to read as follows:
35	35	(a) The owner of a motor vehicle used for rental purposes
36	36	who is required to file a report under this subchapter or, if the
37	37	motor vehicle is rented through a marketplace rental provider and
38	38	the provider is required to file a report under this subchapter, the
39	39	provider, shall keep for four years records and supporting
40	40	documents containing the following information on the amount of:
41	41	(1) gross rental receipts received from the rental of
42	42	the motor vehicle; and
43	43	(2) the tax imposed under this subchapter and paid to
44	44	the municipality or county by the owner or the marketplace rental
45	45	provider, as applicable, on each motor vehicle used for rental
46	46	purposes by the owner.
47	47	SECTION 4. Section 334.111(a), Local Government Code, is
48	48	amended to read as follows:
49	49	(a) An owner of a motor vehicle required to file a report
50	50	under this subchapter or, if applicable, a marketplace rental
51	51	provider required to file a report under this subchapter commits an
52	52	offense if the owner or provider fails to make and retain complete
53	53	records for the four-year period required by Section 334.110.
54	54	SECTION 5. Section 334.113, Local Government Code, is
55	55	amended by amending Subsection (a) and adding Subsections (a-1) and
56	56	(a-2) to read as follows:
57	57	(a) Except as otherwise provided by this section or another
58	58	provision of this subchapter, the [The] owner of a motor vehicle
59	59	required to collect the tax imposed under this subchapter shall
60	60	report and pay [send] the taxes collected to the municipality or
61	61	county as provided by the ordinance or order imposing the tax.
62	62	(a-1) Except as provided by Subsection (a-2), if a
63	63	marketplace rental provider collects the tax imposed under this
64	64	subchapter, the marketplace rental provider shall report and pay
65	65	the taxes collected to the municipality or county as provided by the
66	66	ordinance or order imposing the tax. The marketplace rental
67	67	provider shall certify to the owner of a motor vehicle rented
68	68	through the provider that the provider has collected, reported, and
69	69	paid the tax to the municipality or county. An owner who in good
70	70	faith accepts the marketplace rental provider's certification is
71	71	not required to collect, report, or pay the tax to the municipality
72	72	or county.
73	73	(a-2) The owner of a motor vehicle rented through a
74	74	marketplace rental provider may elect to report and pay the tax
75	75	imposed under this subchapter to the municipality or county. The
76	76	owner must inform the marketplace rental provider in writing if the
77	77	owner elects to report and pay the tax under this subsection. If
78	78	the owner elects to report and pay the tax, the marketplace rental
79	79	provider shall forward the tax collected by the provider to the
80	80	owner.
81	81	SECTION 6. Section 152.001, Tax Code, is amended by adding
82	82	Subdivision (21) to read as follows:
83	83	(21) "Marketplace rental provider" means a person who:
84	84	(A) operates any type of marketplace, including a
85	85	store with a physical location, an Internet website, a software or
86	86	mobile application, or a catalog, by which the owner of a motor
87	87	vehicle lists, markets, or advertises the owner's motor vehicle for
88	88	rental by others for consideration in this state;
89	89	(B) facilitates the rental of the owner's motor
90	90	vehicle by another person by communicating between the owner and
91	91	the other person the terms of the agreement and the acceptance of
92	92	those terms; and
93	93	(C) collects or processes the receipts or rental
94	94	charges paid by the person renting the motor vehicle, either
95	95	directly or through the use of a third-party contractor, for the
96	96	owner of the motor vehicle.
97	97	SECTION 7. Section 152.026(c), Tax Code, is amended to read
98	98	as follows:
99	99	(c) Except for a destroyed motor vehicle or an unrecovered
100	100	stolen motor vehicle, the total amount of gross rental receipts tax
101	101	paid by the owner, as defined by Section 152.001(9)(A) [of this
102	102	code], of, or by a marketplace rental provider on, a motor vehicle
103	103	registered under Section 152.061 [of this code] may not be less than
104	104	an amount equal to the tax that would be imposed by Section 152.021
105	105	or 152.022 [of this code] but for Subsection (d) of this section.
106	106	SECTION 8. Section 152.045, Tax Code, is amended to read as
107	107	follows:
108	108	Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS.
109	109	(a) Except as otherwise provided by this section or another
110	110	provision of [inconsistent with this chapter and rules adopted
111	111	under] this chapter, an owner of a motor vehicle subject to the tax
112	112	on gross rental receipts shall collect, report, and pay the tax to
113	113	the comptroller in the same manner as the tax under Chapter 151
114	114	[Limited Sales, Excise and Use Tax] is collected, reported, and
115	115	paid by a retailer [retailers] under that chapter [Chapter 151 of
116	116	this code].
117	117	(a-1) Except as provided by Subsection (a-2), if the motor
118	118	vehicle is rented through a marketplace rental provider, the
119	119	marketplace rental provider shall collect, report, and pay the tax
120	120	on gross rental receipts to the comptroller in the manner
121	121	prescribed by Subsection (a). The marketplace rental provider
122	122	shall certify to the owner of a motor vehicle rented through the
123	123	provider that the provider has collected, reported, and paid the
124	124	tax. An owner who in good faith accepts the marketplace rental
125	125	provider's certification is not required to collect, report, or pay
126	126	the tax.
127	127	(a-2) The owner of a motor vehicle rented through a
128	128	marketplace rental provider may elect to report and pay the tax on
129	129	gross rental receipts to the comptroller. The owner must inform the
130	130	marketplace rental provider in writing if the owner elects to
131	131	report and pay the tax under this subsection. If the owner elects
132	132	to report and pay the tax, the marketplace rental provider shall
133	133	forward the tax collected by the provider to the owner.
134	134	(b) The owner of a motor vehicle subject to the tax on gross
135	135	rental receipts or, if the motor vehicle is rented through a
136	136	marketplace rental provider, the provider, shall add the tax to the
137	137	rental charge, and when added, the tax is:
138	138	(1) a part of the rental charge;
139	139	(2) a debt owed to the motor vehicle owner or
140	140	marketplace rental provider, as applicable, by the person renting
141	141	the vehicle; and
142	142	(3) recoverable at law in the same manner as the rental
143	143	charge.
144	144	(c) The comptroller may proceed against a person renting a
145	145	motor vehicle, the owner of the rented motor vehicle, or, if the
146	146	vehicle is rented through a marketplace rental provider, the
147	147	provider, for any unpaid gross rental receipts tax.
148	148	(d) In addition to any other penalty provided by law, the
149	149	owner of a motor vehicle subject to the tax on gross rental receipts
150	150	who is required to file a report as provided by this chapter and who
151	151	fails to timely file the report shall pay a penalty of $50. If the
152	152	motor vehicle is rented through a marketplace rental provider and
153	153	the provider is required to file the report but fails to timely file
154	154	the report, the provider shall pay a penalty of $50. The penalty
155	155	provided by this subsection is assessed without regard to whether
156	156	the taxpayer subsequently files the report or whether any taxes
157	157	were due from the taxpayer for the reporting period under the
158	158	required report.
159	159	SECTION 9. Section 152.046(b), Tax Code, is amended to read
160	160	as follows:
161	161	(b) An owner of a motor vehicle on which the motor vehicle
162	162	sales or use tax has been paid who subsequently uses the vehicle for
163	163	rental [shall collect the gross rental receipts tax imposed by this
164	164	chapter from the person renting the vehicle. The owner] may credit
165	165	an amount equal to the motor vehicle sales or use tax paid by the
166	166	owner to the comptroller against the amount of gross rental
167	167	receipts due from the owner. This credit is not transferable and
168	168	cannot be applied against tax due and payable from the rental of
169	169	another vehicle belonging to the same owner.
170	170	SECTION 10. Section 152.063(b), Tax Code, is amended to
171	171	read as follows:
172	172	(b) The owner of a motor vehicle used for rental purposes
173	173	shall keep for four years after purchase of a motor vehicle records
174	174	and supporting documents containing the following information on
175	175	the amount of:
176	176	(1) total consideration for the motor vehicle;
177	177	(2) motor vehicle sales or use tax paid on the motor
178	178	vehicle;
179	179	(3) gross rental receipts received from the rental of
180	180	the motor vehicle by the owner or, if the motor vehicle is rented
181	181	through a marketplace rental provider, by the provider; and
182	182	(4) gross rental receipts tax paid to the comptroller
183	183	by the owner or, if the motor vehicle is rented through a
184	184	marketplace rental provider, by the provider, on each motor vehicle
185	185	used for rental purposes by the owner.
186	186	SECTION 11. Section 152.065, Tax Code, is amended to read as
187	187	follows:
188	188	Sec. 152.065. REQUIRED PERMITS. A motor vehicle owner or a
189	189	marketplace rental provider required to collect, report, and pay a
190	190	tax on gross rental receipts imposed by this chapter and a seller
191	191	required to collect, report, and pay a tax on a seller-financed sale
192	192	shall register as a retailer with the comptroller in the same manner
193	193	as is required of a retailer under Subchapter F, Chapter 151.
194	194	SECTION 12. Subchapter D, Chapter 152, Tax Code, is amended
195	195	by adding Section 152.070 to read as follows:
196	196	Sec. 152.070. MARKETPLACE RENTAL PROVIDER'S REPORT. A
197	197	marketplace rental provider shall send to the owner of a motor
198	198	vehicle that is rented through the provider a report each month that
199	199	shows the amount of tax collected, reported, and paid for each motor
200	200	vehicle that the owner owns and that is rented through the provider.
201	201	The provider is not required to send the report to an owner who
202	202	elects to report and pay the tax under Section 152.045(a-2).
203	203	SECTION 13. This Act applies only to a rental agreement for
204	204	the rental of a motor vehicle entered into on or after the effective
205	205	date of this Act. A rental agreement for the rental of a motor
206	206	vehicle entered into before the effective date of this Act is
207	207	governed by the law in effect on the date the rental agreement was
208	208	entered into, and the former law is continued in effect for the
209	209	collection of taxes due and for civil and criminal enforcement of
210	210	the liability for those taxes.
211	211	SECTION 14. This Act takes effect September 1, 2019.