88R4719 BEF-D
By: Thompson of Brazoria H.B. No. 2004
A BILL TO BE ENTITLED
AN ACT
relating to the tax imposed on the purchase of a motor vehicle by
the lessee on termination of the lease.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 152.001, Tax Code, is amended by
amending Subdivision (2) and adding Subdivision (21) to read as
follows:
(2) "Retail sale" means a sale of a motor vehicle
except:
(A) the sale of a new motor vehicle in which the
purchaser is a franchised dealer who is authorized by law and by
franchise agreement to offer the vehicle for sale as a new motor
vehicle and who acquires the vehicle either for the exclusive
purpose of sale in the manner provided by law or for purposes
allowed under Chapter 503, Transportation Code;
(B) the sale of a vehicle other than a new motor
vehicle in which the purchaser is a dealer who holds a dealer's
general distinguishing number issued under Chapter 503,
Transportation Code, and who acquires the vehicle either for the
exclusive purpose of resale in the manner provided by law or for
purposes allowed under Chapter 503, Transportation Code;
(C) the sale to a franchised dealer of a new motor
vehicle removed from the franchised dealer's inventory for the
purpose of entering into a contract to lease the vehicle to another
person if, immediately after executing the lease contract, the
franchised dealer transfers title of the vehicle and assigns the
lease contract to the lessor of the vehicle; [or]
(D) the sale of a new motor vehicle in which the
purchaser is a manufacturer or distributor as those terms are
defined by Section 2301.002, Occupations Code, who acquires the
motor vehicle either for the exclusive purpose of sale in the manner
provided by law or for purposes allowed under Section 503.064,
Transportation Code; or
(E) the sale of a vehicle other than a new motor
vehicle in a lease buyout.
(21) "Lease buyout" means the purchase of a motor
vehicle that is the subject of a lease agreement by the lessee of
the vehicle under the lease agreement from the lessor on
termination of the lease agreement. The term does not include the
purchase of a motor vehicle by the lessee if the lessor has offered
the vehicle for sale to persons other than the lessee.
SECTION 2. Subchapter B, Chapter 152, Tax Code, is amended
by adding Section 152.029 to read as follows:
Sec. 152.029. TAX ON LEASE BUYOUT. (a) A tax is imposed on
the purchaser of a motor vehicle in a lease buyout.
(b) The tax is $5.
(c) No transfer of title in a lease buyout shall be
accomplished until the tax has been paid.
SECTION 3. Section 152.0412(g), Tax Code, is amended to
read as follows:
(g) This section does not apply to a transaction described
by Section 152.024, [or] 152.025, or 152.029.
SECTION 4. Sections 152.062(b) and (c), Tax Code, are
amended to read as follows:
(b) The statement must be in the following form:
(1) if a motor vehicle is sold, other than in a lease
buyout, the seller and purchaser shall make a joint statement of the
then value in dollars of the total consideration for the vehicle;
(2) if the ownership of a motor vehicle is transferred
as the result of an even exchange, the principal parties shall make
a joint statement describing the nature of the transaction; [or]
(3) if the ownership of a motor vehicle is transferred
as the result of a gift, the principal parties shall make a joint
statement describing the nature of the transaction and the
relationship between the principal parties; or
(4) if a motor vehicle is purchased in a lease buyout,
the seller and purchaser shall make a joint statement describing
the nature of the transaction and shall provide a copy of the lease
agreement.
(c) If a party to a sale, even exchange, [or] gift, or lease
buyout is a corporation, the president, vice-president, secretary,
manager, or other authorized officer of the corporation shall make
the statement for the corporation.
SECTION 5. Section 152.063, Tax Code, is amended by adding
Subsection (i) to read as follows:
(i) The seller of a motor vehicle in a lease buyout shall
keep, at the seller's principal office for at least four years from
the date of the sale, a copy of the lease agreement and a complete
record of the lease buyout, including an invoice showing the total
consideration for the lease buyout.
SECTION 6. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 7. This Act takes effect September 1, 2023.