Texas House Bill HB4010

Texas 2021 - 87th Regular

Caption

Relating to the filing of certain reports by distributors of certain off-highway vehicles purchased outside this state; providing civil penalties.

Impact

The introduction of HB 4010 will have a significant effect on the operations of manufacturers and distributors in Texas as it mandates annual reporting on warranties for off-highway vehicles sold to Texas residents. This requirement is intended to ensure that the state can monitor and track the sales trends and warranty issues associated with off-highway vehicles being distributed from outside the state. Failure to comply with these reporting requirements could subject manufacturers and distributors to civil penalties.

Summary

House Bill 4010 addresses the procedures for filing reports by distributors of certain off-highway vehicles that were purchased outside the state of Texas. It aims to enhance accountability by instituting reporting requirements related to warranties issued by manufacturers and distributors. This bill amends existing provisions in the Texas Tax Code, detailing the information required for such reports and specifying deadlines for submission.

Contention

There may be points of contention surrounding HB 4010 regarding the administrative burden it places on manufacturers and distributors. Some stakeholders may argue that the reporting requirements are excessive and could deter businesses from operating in or engaging with the Texas market. Additionally, the civil penalties for non-compliance are set to range from a minimum of $25 to a maximum of $2,000 per day, which could disproportionately impact smaller businesses or those reliant on off-highway vehicles for operations.