Texas 2023 - 88th Regular

Texas House Bill HB3209 Compare Versions

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1	1	88R5526 CJC-D
2	2	By: Thompson of Brazoria H.B. No. 3209
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the collection, remittance, and administration of
8	8	certain taxes on motor vehicles rented through a marketplace rental
9	9	provider; imposing a penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 334.105, Local Government Code, is
12	12	amended by adding Subsection (c) to read as follows:
13	13	(c) Notwithstanding Subsections (a) and (b), if a motor
14	14	vehicle subject to the tax imposed under this subchapter is rented
15	15	through a marketplace rental provider, the marketplace rental
16	16	provider shall collect the tax for the benefit of the municipality
17	17	or county. The marketplace rental provider shall add the tax
18	18	imposed under this subchapter, if applicable, and the gross rental
19	19	receipts tax imposed by Chapter 152, Tax Code, to the rental charge,
20	20	and the sum of the taxes is part of the rental charge, is a debt owed
21	21	to the marketplace rental provider by the person renting the
22	22	vehicle, and is recoverable at law in the same manner as the rental
23	23	charge.
24	24	SECTION 2. Section 334.109, Local Government Code, is
25	25	amended to read as follows:
26	26	Sec. 334.109. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
27	27	gross receipts of an owner of a motor vehicle or, if the motor
28	28	vehicle is rented through a marketplace rental provider, of the
29	29	provider, from the rental of the motor vehicle are presumed to be
30	30	subject to the tax imposed by this subchapter, except for gross
31	31	receipts for which the owner or marketplace rental provider has
32	32	accepted in good faith a properly completed exemption certificate.
33	33	SECTION 3. Section 334.110(a), Local Government Code, is
34	34	amended to read as follows:
35	35	(a) The owner of a motor vehicle used for rental purposes
36	36	who is required to file a report under this subchapter or, if the
37	37	motor vehicle is rented through a marketplace rental provider and
38	38	the provider is required to file a report under this subchapter, the
39	39	provider, shall keep for four years records and supporting
40	40	documents containing the following information on the amount of:
41	41	(1) gross rental receipts received from the rental of
42	42	the motor vehicle; and
43	43	(2) the tax imposed under this subchapter and paid to
44	44	the municipality or county by the owner or the marketplace rental
45	45	provider, as applicable, on each motor vehicle used for rental
46	46	purposes by the owner.
47	47	SECTION 4. Section 334.111(a), Local Government Code, is
48	48	amended to read as follows:
49	49	(a) An owner of a motor vehicle required to file a report
50	50	under this subchapter or, if applicable, a marketplace rental
51	51	provider required to file a report under this subchapter commits an
52	52	offense if the owner or provider fails to make and retain complete
53	53	records for the four-year period required by Section 334.110.
54	54	SECTION 5. Section 334.113, Local Government Code, is
55	55	amended by amending Subsection (a) and adding Subsections (a-1) and
56	56	(a-2) to read as follows:
57	57	(a) Except as otherwise provided by this section or another
58	58	provision of this subchapter, the [The] owner of a motor vehicle
59	59	required to collect the tax imposed under this subchapter shall
60	60	report and pay [send] the taxes collected to the municipality or
61	61	county as provided by the ordinance or order imposing the tax.
62	62	(a-1) Except as provided by Subsection (a-2), if a
63	63	marketplace rental provider collects the tax imposed under this
64	64	subchapter, the marketplace rental provider shall report and pay
65	65	the taxes collected to the municipality or county as provided by the
66	66	ordinance or order imposing the tax. The marketplace rental
67	67	provider shall certify to the owner of a motor vehicle rented
68	68	through the provider that the provider has collected, reported, and
69	69	paid the tax to the municipality or county. An owner who in good
70	70	faith accepts the marketplace rental provider's certification is
71	71	not required to collect, report, or pay the tax to the municipality
72	72	or county.
73	73	(a-2) The owner of a motor vehicle rented through a
74	74	marketplace rental provider may elect to report and pay the tax
75	75	imposed under this subchapter to the municipality or county. If the
76	76	owner elects to report and pay the tax under this subsection:
77	77	(1) the owner must:
78	78	(A) register as required by Section 152.065, Tax
79	79	Code; and
80	80	(B) inform the marketplace rental provider in
81	81	writing of the election; and
82	82	(2) the marketplace rental provider shall forward the
83	83	tax collected by the provider to the owner.
84	84	SECTION 6. Section 152.001, Tax Code, is amended by
85	85	amending Subdivision (8) and adding Subdivision (21) to read as
86	86	follows:
87	87	(8) "Gross rental receipts" means value received or
88	88	promised as consideration to the owner of a motor vehicle or the
89	89	marketplace rental provider for rental of the vehicle, but does not
90	90	include:
91	91	(A) separately stated charges for insurance;
92	92	(B) charges for damages to the motor vehicle
93	93	occurring during the rental agreement period;
94	94	(C) separately stated charges for motor fuel sold
95	95	by the owner of the motor vehicle; or
96	96	(D) discounts.
97	97	(21) "Marketplace rental provider" means a person who:
98	98	(A) operates any type of marketplace, including a
99	99	store with a physical location, an Internet website, a software or
100	100	mobile application, or a catalog, by which the owner of a motor
101	101	vehicle lists, markets, or advertises the owner's motor vehicle for
102	102	rental by others for consideration in this state;
103	103	(B) facilitates the rental of the owner's motor
104	104	vehicle by another person by communicating between the owner and
105	105	the other person the terms of the agreement and the acceptance of
106	106	those terms; and
107	107	(C) directly or indirectly collects or processes
108	108	the receipts or rental charges paid by the person renting the motor
109	109	vehicle for the owner of the motor vehicle.
110	110	SECTION 7. Section 152.045, Tax Code, is amended to read as
111	111	follows:
112	112	Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS.
113	113	(a) Except as otherwise provided by this section or another
114	114	provision of [inconsistent with this chapter and rules adopted
115	115	under] this chapter, an owner of a motor vehicle subject to the tax
116	116	on gross rental receipts shall collect, report, and pay the tax to
117	117	the comptroller in the same manner as the tax under Chapter 151
118	118	[Limited Sales, Excise and Use Tax] is collected, reported, and
119	119	paid by a retailer [retailers] under that chapter [Chapter 151 of
120	120	this code].
121	121	(a-1) Except as provided by Subsection (a-2), if the motor
122	122	vehicle is rented through a marketplace rental provider, the
123	123	marketplace rental provider shall collect, report, and pay the tax
124	124	on gross rental receipts to the comptroller in the manner
125	125	prescribed by Subsection (a). The marketplace rental provider
126	126	shall certify to the owner of a motor vehicle rented through the
127	127	provider that the provider has collected, reported, and paid the
128	128	tax. An owner who in good faith accepts the marketplace rental
129	129	provider's certification is not required to collect, report, or pay
130	130	the tax.
131	131	(a-2) The owner of a motor vehicle rented through a
132	132	marketplace rental provider may elect to report and pay the tax on
133	133	gross rental receipts to the comptroller. If the owner elects to
134	134	report and pay the tax under this subsection:
135	135	(1) the owner must:
136	136	(A) register as required by Section 152.065; and
137	137	(B) inform the marketplace rental provider in
138	138	writing of the election; and
139	139	(2) the marketplace rental provider shall forward the
140	140	tax collected by the provider to the owner.
141	141	(b) The owner of a motor vehicle subject to the tax on gross
142	142	rental receipts or, if the motor vehicle is rented through a
143	143	marketplace rental provider, the provider, shall add the tax to the
144	144	rental charge, and when added, the tax is:
145	145	(1) a part of the rental charge;
146	146	(2) a debt owed to the motor vehicle owner or
147	147	marketplace rental provider, as applicable, by the person renting
148	148	the vehicle; and
149	149	(3) recoverable at law in the same manner as the rental
150	150	charge.
151	151	(c) The comptroller may proceed against a person renting a
152	152	motor vehicle, the owner of the rented motor vehicle, or the
153	153	marketplace rental provider, as applicable, for any unpaid gross
154	154	rental receipts tax.
155	155	(d) In addition to any other penalty provided by law, the
156	156	owner of a motor vehicle subject to the tax on gross rental receipts
157	157	who is required to file a report as provided by this chapter and who
158	158	fails to timely file the report shall pay a penalty of $50. If the
159	159	motor vehicle is rented through a marketplace rental provider and
160	160	the provider is required to file a report under this chapter but
161	161	fails to timely file the report, the provider shall pay a penalty of
162	162	$50. The penalty provided by this subsection is assessed without
163	163	regard to whether the taxpayer subsequently files the report or
164	164	whether any taxes were due from the taxpayer for the reporting
165	165	period under the required report.
166	166	SECTION 8. Section 152.046(b), Tax Code, is amended to read
167	167	as follows:
168	168	(b) An owner of a motor vehicle on which the motor vehicle
169	169	sales or use tax has been paid who subsequently uses the vehicle for
170	170	rental [shall collect the gross rental receipts tax imposed by this
171	171	chapter from the person renting the vehicle. The owner] may credit
172	172	an amount equal to the motor vehicle sales or use tax paid by the
173	173	owner to the comptroller against the amount of gross rental
174	174	receipts due from the owner. This credit is not transferable and
175	175	cannot be applied against tax due and payable from the rental of
176	176	another vehicle belonging to the same owner.
177	177	SECTION 9. Section 152.063(b), Tax Code, is amended to read
178	178	as follows:
179	179	(b) Except as otherwise provided by Section 111.0041:
180	180	(1) the [The] owner of a motor vehicle used for rental
181	181	purposes shall keep for at least four years after the purchase of
182	182	the [a] motor vehicle records and supporting documents containing
183	183	[the following] information on the amount of:
184	184	(A) [(1)] total consideration for the motor
185	185	vehicle; and
186	186	(B) [(2)] motor vehicle sales or use tax paid on
187	187	the motor vehicle; and
188	188	(2) the owner of a motor vehicle used for rental
189	189	purposes and, if the motor vehicle is rented through a marketplace
190	190	rental provider, the provider, shall keep for at least four years
191	191	supporting documents containing information on the amount of:
192	192	(A) [(3)] gross rental receipts received by the
193	193	owner or provider, as applicable, from the rental of the motor
194	194	vehicle; and
195	195	(B) [(4)] gross rental receipts tax paid to the
196	196	comptroller by the owner or provider, as applicable, on each motor
197	197	vehicle used for rental purposes by the owner.
198	198	SECTION 10. Section 152.065, Tax Code, is amended to read as
199	199	follows:
200	200	Sec. 152.065. REQUIRED PERMITS. A motor vehicle owner or a
201	201	marketplace rental provider required to collect, report, and pay a
202	202	tax on gross rental receipts imposed by this chapter and a seller
203	203	required to collect, report, and pay a tax on a seller-financed sale
204	204	shall register as a retailer with the comptroller in the same manner
205	205	as is required of a retailer under Subchapter F, Chapter 151.
206	206	SECTION 11. Subchapter D, Chapter 152, Tax Code, is amended
207	207	by adding Section 152.070 to read as follows:
208	208	Sec. 152.070. MARKETPLACE RENTAL PROVIDER'S REPORT. A
209	209	marketplace rental provider shall send to the owner of a motor
210	210	vehicle that is rented through the provider a report each month that
211	211	shows the amount of tax collected, reported, and paid for each motor
212	212	vehicle that the owner owns and that is rented through the provider.
213	213	The provider is not required to send the report to an owner who
214	214	elects to report and pay the tax under Section 152.045(a-2).
215	215	SECTION 12. This Act applies only to a rental agreement for
216	216	the rental of a motor vehicle entered into on or after the effective
217	217	date of this Act. A rental agreement for the rental of a motor
218	218	vehicle entered into before the effective date of this Act is
219	219	governed by the law in effect on the date the rental agreement was
220	220	entered into, and the former law is continued in effect for the
221	221	collection of taxes due and for civil and criminal enforcement of
222	222	the liability for those taxes.
223	223	SECTION 13. This Act takes effect October 1, 2023.