87R5765 SMT-F
By: Thierry H.B. No. 2627
A BILL TO BE ENTITLED
AN ACT
relating to the clarification of certain provisions regarding taxes
imposed on the sale, rental, and use of motor vehicles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 152.001(14), Tax Code, is amended to
read as follows:
(14) "Nonprofit" means:
(A) organized as a nonprofit corporation that is
governed by Chapter 22, Business Organizations Code [under the
Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
Vernon's Texas Civil Statutes)]; or
(B) organized and operated in a way that does not
result in accrual of distributable profits, realization of private
gain resulting from payment of compensation other than reasonable
compensation for services rendered by persons who are not members
of the organization, or realization of any other form of private
gain.
SECTION 2. Section 152.002(c), Tax Code, is amended to read
as follows:
(c) A person who is in the business of selling, renting, or
leasing motor vehicles, who obtains the certificate of title under
Chapter 501, Transportation Code, to a motor vehicle, and who uses
that motor vehicle in this state for business or personal purposes
may deduct its fair market value from the total consideration paid
for a replacement vehicle if:
(1) the person obtains the certificate of title under
Chapter 501, Transportation Code, to the replacement motor vehicle;
(2) the person uses the replacement motor vehicle in
this state for business or personal purposes; and
(3) the replaced motor vehicle is offered for sale.
SECTION 3. The amendments made by this Act are a
clarification of existing law and do not imply that existing law may
be construed as inconsistent with the law as amended by this Act.
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, 2021.