S.B. No. 58
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), (d), and (e), 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; and
(B) 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.
(e) The owner of a motor vehicle that is subject to a lease
shall maintain the form, an electronic image of the form, or a
certified copy of the form completed by the lessee of the vehicle
and make the form, electronic image, or certified copy available
for inspection and copying by the chief appraiser of the applicable
appraisal district at all reasonable times. If the owner does not
maintain a completed form, electronic image of the completed form,
or certified copy of the completed form relating to the vehicle, the
owner:
(1) must render the vehicle for taxation in the
applicable rendition statement or property report filed by the
owner under Chapter 22; and
(2) may not file an application for an exemption under
Subsection (a) for the vehicle.
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, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 58 passed the Senate on
April 26, 2019, by the following vote: Yeas 30, Nays 0; and that
the Senate concurred in House amendment on May 25, 2019, by the
following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 58 passed the House, with
amendment, on May 22, 2019, by the following vote: Yeas 143,
Nays 1, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor