Texas 2023 - 88th Regular

Texas House Bill HB3769 Compare Versions

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1	1	88R6758 CJC-F
2	2	By: Murr H.B. No. 3769
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the ad valorem taxation of certain dealer's heavy
8	8	equipment inventory.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 23.1242, Tax Code, is amended by
11	11	amending Subsections (b), (e), (f), (g), (j), (k), and (n) and
12	12	adding Subsection (b-1) to read as follows:
13	13	(b) Except for an item of heavy equipment sold to a dealer,
14	14	an item of heavy equipment included in a fleet transaction, an item
15	15	of heavy equipment that is the subject of a subsequent sale, or an
16	16	item of heavy equipment that is subject to a lease or rental, an
17	17	owner or a person who has agreed by contract to pay the owner's
18	18	current year property taxes levied against the owner's heavy
19	19	equipment inventory shall assign a unit property tax to each item of
20	20	heavy equipment sold from a dealer's heavy equipment inventory. In
21	21	the case of a lease or rental, the owner shall assign a unit
22	22	property tax to each item of heavy equipment leased or rented. The
23	23	unit property tax of each item of heavy equipment is determined by
24	24	multiplying the sales price of the item or the monthly lease or
25	25	rental payment received for the item, as applicable, by the unit
26	26	property tax factor. Except as otherwise provided by this
27	27	subsection, if [If] the transaction is a lease or rental, the owner
28	28	shall collect the unit property tax from the lessee or renter at the
29	29	time the lessee or renter submits payment for the lease or
30	30	rental. The owner of the equipment shall state the amount of the
31	31	unit property tax assigned as a separate line item on an
32	32	invoice. If the item of heavy equipment is leased or rented to the
33	33	United States or an agency or instrumentality of the United States,
34	34	the owner of the equipment may not collect the unit property tax
35	35	from the lessee or renter and may not include the amount of the unit
36	36	property tax assigned as a separate line item on an invoice provided
37	37	to the lessee or renter. On or before the 20th day of the month
38	38	following each calendar quarter [month] the owner shall, together
39	39	with the statement filed by the owner as required by this section,
40	40	deposit with the collector an amount equal to the total of unit
41	41	property tax assigned to all items of heavy equipment sold, leased,
42	42	or rented from the dealer's heavy equipment inventory in the
43	43	preceding calendar quarter [month] to which a unit property tax was
44	44	assigned. The money shall be deposited by the collector to the
45	45	credit of the owner's escrow account for prepayment of property
46	46	taxes as provided by this section. An escrow account required by
47	47	this section is used to pay property taxes levied against the
48	48	dealer's heavy equipment inventory, and the owner shall fund the
49	49	escrow account as provided by this subsection.
50	50	(b-1) Not later than December 15 of each year, the collector
51	51	shall provide written notice to each owner for whom the collector
52	52	maintains an escrow account under Subsection (c) of the unit
53	53	property tax factor for the following tax year for each location in
54	54	which the owner's heavy equipment inventory is located.
55	55	(e) The comptroller by rule shall adopt a dealer's heavy
56	56	equipment inventory tax statement form. Each calendar quarter
57	57	[month], a dealer shall complete the form regardless of whether an
58	58	item of heavy equipment is sold, leased, or rented. A dealer may
59	59	use no other form for that purpose. The statement may include the
60	60	information the comptroller considers appropriate but shall
61	61	include at least the following:
62	62	(1) a description of each item of heavy equipment
63	63	sold, leased, or rented including any unique identification or
64	64	serial number affixed to the item by the manufacturer;
65	65	(2) the sales price of or lease or rental payment
66	66	received for the item of heavy equipment, as applicable;
67	67	(3) the unit property tax of the item of heavy
68	68	equipment, if any; and
69	69	(4) the reason no unit property tax is assigned if no
70	70	unit property tax is assigned.
71	71	(f) On or before the 20th day of the month following each
72	72	calendar quarter [month], a dealer shall file with the collector
73	73	the statement covering the sale, lease, or rental of each item of
74	74	heavy equipment sold, leased, or rented by the dealer in the
75	75	preceding calendar quarter [month]. On or before the 20th day of
76	76	the [a] month following a calendar quarter [month] in which a dealer
77	77	does not sell, lease, or rent an item of heavy equipment, the dealer
78	78	must file the statement with the collector and indicate that no
79	79	sales, leases, or rentals were made in the preceding calendar
80	80	quarter [prior month]. A dealer shall [file a copy of the
81	81	statement with the chief appraiser and] retain documentation
82	82	relating to the disposition of each item of heavy equipment sold and
83	83	the lease or rental of each item of heavy equipment. A chief
84	84	appraiser or collector may examine documents held by a dealer as
85	85	provided by this subsection in the same manner, and subject to the
86	86	same conditions, as provided by Section 23.1241(g).
87	87	(g) Except as provided by this subsection, Subsection (f)
88	88	applies to any dealer, regardless of whether a dealer owes heavy
89	89	equipment inventory tax for the current year. A dealer who owes no
90	90	heavy equipment inventory tax for the current year because the
91	91	dealer was not in business on January 1:
92	92	(1) shall file the statement required by this section
93	93	showing the information required by this section for each calendar
94	94	quarter [month] that the dealer is in business; and
95	95	(2) may not assign a unit property tax to an item of
96	96	heavy equipment sold by the dealer or remit money with the statement
97	97	except in compliance with the terms of a contract as provided by
98	98	Subsection (k).
99	99	(j) The collector shall remit to each appropriate taxing
100	100	unit the total amount collected by the collector in deficiency
101	101	payments. The assessor of each taxing unit shall apply those funds
102	102	to the taxes owed by the owner. Taxes that are due but not received
103	103	by the collector on or before February 28 [January 31] are
104	104	delinquent. Not later than March 31 [February 15], the collector
105	105	shall distribute to each appropriate taxing unit in the manner
106	106	provided by this section all funds collected under authority of
107	107	this section and held in escrow by the collector under this
108	108	section. The [This section does not impose a duty on a] collector
109	109	shall [to] collect delinquent taxes as required by this section
110	110	regardless of whether [that] the collector is [not] otherwise
111	111	obligated by law or contract to collect the delinquent taxes.
112	112	(k) A person who acquires the business or assets of an owner
113	113	may, by contract, agree to pay the current year heavy equipment
114	114	inventory taxes owed by the owner. The person who acquires the
115	115	business or assets of the owner may use the same unit property tax
116	116	factor that the owner who owes the current year tax would use when
117	117	paying the current year tax. The owner who owes the current year
118	118	tax and the person who acquires the business or assets of the owner
119	119	shall jointly notify the chief appraiser and the collector of the
120	120	terms of the agreement and of the fact that the other person has
121	121	agreed to pay the current year heavy equipment inventory taxes owed
122	122	by the dealer. The chief appraiser and the collector shall adjust
123	123	their records accordingly. Notwithstanding Section 23.1241, a
124	124	person who agrees to pay current year heavy equipment inventory
125	125	taxes as provided by this subsection is not required to file a
126	126	declaration until the year following the acquisition. This
127	127	subsection does not relieve the selling owner of the tax liability.
128	128	(n) An owner who fails to remit unit property taxes due as
129	129	required by this section shall pay a penalty of five percent of the
130	130	amount due. If the amount is not paid within 10 days after the due
131	131	date, the owner shall pay an additional penalty of five percent of
132	132	the amount due. Notwithstanding this section, unit property taxes
133	133	paid on or before February 28 [January 31] of the year following the
134	134	date on which they are due are not delinquent. The collector, the
135	135	collector's designated agent, or the county or district attorney
136	136	shall enforce this subsection. A penalty under this subsection is
137	137	in addition to any other penalty provided by law if the owner's
138	138	taxes are delinquent.
139	139	SECTION 2. Section 31.02(a), Tax Code, is amended to read as
140	140	follows:
141	141	(a) Except as provided by Subsection (b) of this section and
142	142	by Sections 23.1242, 31.03, and 31.04 [of this code], taxes are due
143	143	on receipt of the tax bill and are delinquent if not paid before
144	144	February 1 of the year following the year in which imposed.
145	145	SECTION 3. This Act applies only to ad valorem taxes imposed
146	146	for an ad valorem tax year that begins on or after the effective
147	147	date of this Act.
148	148	SECTION 4. This Act takes effect January 1, 2024.