Texas 2023 - 88th Regular

Texas House Bill HB2004 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R4719 BEF-D
2	2	By: Thompson of Brazoria H.B. No. 2004
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the tax imposed on the purchase of a motor vehicle by
8	8	the lessee on termination of the lease.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 152.001, Tax Code, is amended by
11	11	amending Subdivision (2) and adding Subdivision (21) to read as
12	12	follows:
13	13	(2) "Retail sale" means a sale of a motor vehicle
14	14	except:
15	15	(A) the sale of a new motor vehicle in which the
16	16	purchaser is a franchised dealer who is authorized by law and by
17	17	franchise agreement to offer the vehicle for sale as a new motor
18	18	vehicle and who acquires the vehicle either for the exclusive
19	19	purpose of sale in the manner provided by law or for purposes
20	20	allowed under Chapter 503, Transportation Code;
21	21	(B) the sale of a vehicle other than a new motor
22	22	vehicle in which the purchaser is a dealer who holds a dealer's
23	23	general distinguishing number issued under Chapter 503,
24	24	Transportation Code, and who acquires the vehicle either for the
25	25	exclusive purpose of resale in the manner provided by law or for
26	26	purposes allowed under Chapter 503, Transportation Code;
27	27	(C) the sale to a franchised dealer of a new motor
28	28	vehicle removed from the franchised dealer's inventory for the
29	29	purpose of entering into a contract to lease the vehicle to another
30	30	person if, immediately after executing the lease contract, the
31	31	franchised dealer transfers title of the vehicle and assigns the
32	32	lease contract to the lessor of the vehicle; [or]
33	33	(D) the sale of a new motor vehicle in which the
34	34	purchaser is a manufacturer or distributor as those terms are
35	35	defined by Section 2301.002, Occupations Code, who acquires the
36	36	motor vehicle either for the exclusive purpose of sale in the manner
37	37	provided by law or for purposes allowed under Section 503.064,
38	38	Transportation Code; or
39	39	(E) the sale of a vehicle other than a new motor
40	40	vehicle in a lease buyout.
41	41	(21) "Lease buyout" means the purchase of a motor
42	42	vehicle that is the subject of a lease agreement by the lessee of
43	43	the vehicle under the lease agreement from the lessor on
44	44	termination of the lease agreement. The term does not include the
45	45	purchase of a motor vehicle by the lessee if the lessor has offered
46	46	the vehicle for sale to persons other than the lessee.
47	47	SECTION 2. Subchapter B, Chapter 152, Tax Code, is amended
48	48	by adding Section 152.029 to read as follows:
49	49	Sec. 152.029. TAX ON LEASE BUYOUT. (a) A tax is imposed on
50	50	the purchaser of a motor vehicle in a lease buyout.
51	51	(b) The tax is $5.
52	52	(c) No transfer of title in a lease buyout shall be
53	53	accomplished until the tax has been paid.
54	54	SECTION 3. Section 152.0412(g), Tax Code, is amended to
55	55	read as follows:
56	56	(g) This section does not apply to a transaction described
57	57	by Section 152.024, [or] 152.025, or 152.029.
58	58	SECTION 4. Sections 152.062(b) and (c), Tax Code, are
59	59	amended to read as follows:
60	60	(b) The statement must be in the following form:
61	61	(1) if a motor vehicle is sold, other than in a lease
62	62	buyout, the seller and purchaser shall make a joint statement of the
63	63	then value in dollars of the total consideration for the vehicle;
64	64	(2) if the ownership of a motor vehicle is transferred
65	65	as the result of an even exchange, the principal parties shall make
66	66	a joint statement describing the nature of the transaction; [or]
67	67	(3) if the ownership of a motor vehicle is transferred
68	68	as the result of a gift, the principal parties shall make a joint
69	69	statement describing the nature of the transaction and the
70	70	relationship between the principal parties; or
71	71	(4) if a motor vehicle is purchased in a lease buyout,
72	72	the seller and purchaser shall make a joint statement describing
73	73	the nature of the transaction and shall provide a copy of the lease
74	74	agreement.
75	75	(c) If a party to a sale, even exchange, [or] gift, or lease
76	76	buyout is a corporation, the president, vice-president, secretary,
77	77	manager, or other authorized officer of the corporation shall make
78	78	the statement for the corporation.
79	79	SECTION 5. Section 152.063, Tax Code, is amended by adding
80	80	Subsection (i) to read as follows:
81	81	(i) The seller of a motor vehicle in a lease buyout shall
82	82	keep, at the seller's principal office for at least four years from
83	83	the date of the sale, a copy of the lease agreement and a complete
84	84	record of the lease buyout, including an invoice showing the total
85	85	consideration for the lease buyout.
86	86	SECTION 6. The change in law made by this Act does not
87	87	affect tax liability accruing before the effective date of this
88	88	Act. That liability continues in effect as if this Act had not been
89	89	enacted, and the former law is continued in effect for the
90	90	collection of taxes due and for civil and criminal enforcement of
91	91	the liability for those taxes.
92	92	SECTION 7. This Act takes effect September 1, 2023.