| 1 | 1 | | 88R12784 DRS-D |
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| 2 | 2 | | By: Hughes S.B. No. 2252 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the electronic submission of dealer's motor vehicle |
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| 8 | 8 | | inventory tax statements and escrow payments. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 23.122(a), (b), and (f), Tax Code, are |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) In this section: |
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| 13 | 13 | | (1) "Aggregate tax rate" means the combined tax rates |
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| 14 | 14 | | of all relevant taxing units authorized by law to levy property |
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| 15 | 15 | | taxes against a dealer's motor vehicle inventory. |
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| 16 | 16 | | (2) "Chief appraiser" has the meaning given it in |
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| 17 | 17 | | Section 23.121 of this code. |
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| 18 | 18 | | (3) "Collector" has the meaning given it in Section |
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| 19 | 19 | | 23.121 of this code. |
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| 20 | 20 | | (4) "Dealer's motor vehicle inventory" has the meaning |
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| 21 | 21 | | given it in Section 23.121 of this code. |
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| 22 | 22 | | (5) "Declaration" has the meaning given it in Section |
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| 23 | 23 | | 23.121 of this code. |
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| 24 | 24 | | (5-a) "Electronic payment" means a payment made by |
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| 25 | 25 | | credit card, debit card, electronic check, electronic funds |
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| 26 | 26 | | transfer, wire transfer, or automated clearinghouse withdrawal. |
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| 27 | 27 | | (6) "Owner" has the meaning given it in Section 23.121 |
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| 28 | 28 | | of this code. |
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| 29 | 29 | | (7) "Relevant taxing unit" means a taxing unit, |
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| 30 | 30 | | including the county, authorized by law to levy property taxes |
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| 31 | 31 | | against a dealer's motor vehicle inventory. |
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| 32 | 32 | | (8) "Sales price" has the meaning given it in Section |
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| 33 | 33 | | 23.121 of this code. |
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| 34 | 34 | | (9) "Statement" means the Dealer's Motor Vehicle |
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| 35 | 35 | | Inventory Tax Statement filed on a form promulgated by the |
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| 36 | 36 | | comptroller as required by this section. |
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| 37 | 37 | | (10) "Subsequent sale" has the meaning given it in |
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| 38 | 38 | | Section 23.121 of this code. |
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| 39 | 39 | | (11) "Total annual sales" has the meaning given it in |
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| 40 | 40 | | Section 23.121 of this code. |
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| 41 | 41 | | (12) "Unit property tax factor" means a number equal |
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| 42 | 42 | | to one-twelfth of the prior year aggregate tax rate at the location |
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| 43 | 43 | | where a dealer's motor vehicle inventory is located on January 1 of |
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| 44 | 44 | | the current year. |
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| 45 | 45 | | (b) Except for a vehicle sold to a dealer, a vehicle |
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| 46 | 46 | | included in a fleet transaction, or a vehicle that is the subject of |
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| 47 | 47 | | a subsequent sale, an owner or a person who has agreed by contract |
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| 48 | 48 | | to pay the owner's current year property taxes levied against the |
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| 49 | 49 | | owner's motor vehicle inventory shall assign a unit property tax to |
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| 50 | 50 | | each motor vehicle sold from a dealer's motor vehicle inventory. |
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| 51 | 51 | | The unit property tax of each motor vehicle is determined by |
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| 52 | 52 | | multiplying the sales price of the motor vehicle by the unit |
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| 53 | 53 | | property tax factor. On or before the 10th day of each month the |
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| 54 | 54 | | owner shall, together with the statement filed by the owner as |
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| 55 | 55 | | required by this section, deposit with the collector a sum equal to |
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| 56 | 56 | | the total of unit property tax assigned to all motor vehicles sold |
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| 57 | 57 | | from the dealer's motor vehicle inventory in the prior month to |
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| 58 | 58 | | which a unit property tax was assigned. The money shall be |
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| 59 | 59 | | deposited by the collector in or otherwise credited by the |
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| 60 | 60 | | collector to the owner's escrow account for prepayment of property |
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| 61 | 61 | | taxes as provided by this section. An escrow account required by |
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| 62 | 62 | | this section is used to pay property taxes levied against the |
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| 63 | 63 | | dealer's motor vehicle inventory, and the owner shall fund the |
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| 64 | 64 | | escrow account as provided by this subsection. The collector shall |
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| 65 | 65 | | establish a procedure by which the owner may make the deposits |
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| 66 | 66 | | required by this section by electronic payment. |
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| 67 | 67 | | (f) On or before the 10th day of each month a dealer shall |
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| 68 | 68 | | file with the collector the statement covering the sale of each |
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| 69 | 69 | | motor vehicle sold by the dealer in the prior month. On or before |
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| 70 | 70 | | the 10th day of a month following a month in which a dealer does not |
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| 71 | 71 | | sell a motor vehicle, the dealer must file the statement with the |
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| 72 | 72 | | collector and indicate that no sales were made in the prior month. |
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| 73 | 73 | | A dealer shall file a copy of the statement with the chief appraiser |
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| 74 | 74 | | and retain documentation relating to the disposition of each motor |
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| 75 | 75 | | vehicle sold. A chief appraiser or collector may examine documents |
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| 76 | 76 | | held by a dealer as required by this subsection in the same manner, |
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| 77 | 77 | | and subject to the same provisions, as are set forth in Section |
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| 78 | 78 | | 23.121(g). The collector shall establish a procedure by which a |
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| 79 | 79 | | dealer may file the statements required by this section by |
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| 80 | 80 | | electronic means. |
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| 81 | 81 | | SECTION 2. This Act takes effect September 1, 2023. |
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