88R12784 DRS-D
By: Hefner H.B. No. 4871
A BILL TO BE ENTITLED
AN ACT
relating to the electronic submission of dealer's motor vehicle
inventory tax statements and escrow payments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 23.122(a), (b), and (f), Tax Code, are
amended to read as follows:
(a) In this section:
(1) "Aggregate tax rate" means the combined tax rates
of all relevant taxing units authorized by law to levy property
taxes against a dealer's motor vehicle inventory.
(2) "Chief appraiser" has the meaning given it in
Section 23.121 of this code.
(3) "Collector" has the meaning given it in Section
23.121 of this code.
(4) "Dealer's motor vehicle inventory" has the meaning
given it in Section 23.121 of this code.
(5) "Declaration" has the meaning given it in Section
23.121 of this code.
(5-a) "Electronic payment" means a payment made by
credit card, debit card, electronic check, electronic funds
transfer, wire transfer, or automated clearinghouse withdrawal.
(6) "Owner" has the meaning given it in Section 23.121
of this code.
(7) "Relevant taxing unit" means a taxing unit,
including the county, authorized by law to levy property taxes
against a dealer's motor vehicle inventory.
(8) "Sales price" has the meaning given it in Section
23.121 of this code.
(9) "Statement" means the Dealer's Motor Vehicle
Inventory Tax Statement filed on a form promulgated by the
comptroller as required by this section.
(10) "Subsequent sale" has the meaning given it in
Section 23.121 of this code.
(11) "Total annual sales" has the meaning given it in
Section 23.121 of this code.
(12) "Unit property tax factor" means a number equal
to one-twelfth of the prior year aggregate tax rate at the location
where a dealer's motor vehicle inventory is located on January 1 of
the current year.
(b) Except for a vehicle sold to a dealer, a vehicle
included in a fleet transaction, or a vehicle that is the subject of
a subsequent sale, an owner or a person who has agreed by contract
to pay the owner's current year property taxes levied against the
owner's motor vehicle inventory shall assign a unit property tax to
each motor vehicle sold from a dealer's motor vehicle inventory.
The unit property tax of each motor vehicle is determined by
multiplying the sales price of the motor vehicle by the unit
property tax factor. On or before the 10th day of each month the
owner shall, together with the statement filed by the owner as
required by this section, deposit with the collector a sum equal to
the total of unit property tax assigned to all motor vehicles sold
from the dealer's motor vehicle inventory in the prior month to
which a unit property tax was assigned. The money shall be
deposited by the collector in or otherwise credited by the
collector to the owner's escrow account for prepayment of property
taxes as provided by this section. An escrow account required by
this section is used to pay property taxes levied against the
dealer's motor vehicle inventory, and the owner shall fund the
escrow account as provided by this subsection. The collector shall
establish a procedure by which the owner may make the deposits
required by this section by electronic payment.
(f) On or before the 10th day of each month a dealer shall
file with the collector the statement covering the sale of each
motor vehicle sold by the dealer in the prior month. On or before
the 10th day of a month following a month in which a dealer does not
sell a motor vehicle, the dealer must file the statement with the
collector and indicate that no sales were made in the prior month.
A dealer shall file a copy of the statement with the chief appraiser
and retain documentation relating to the disposition of each motor
vehicle sold. A chief appraiser or collector may examine documents
held by a dealer as required by this subsection in the same manner,
and subject to the same provisions, as are set forth in Section
23.121(g). The collector shall establish a procedure by which a
dealer may file the statements required by this section by
electronic means.
SECTION 2. This Act takes effect September 1, 2023.