Texas 2025 - 89th Regular

Texas House Bill HB3424 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R9283 CJC-F
2	2	By: Capriglione H.B. No. 3424
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the ad valorem taxation of certain dealer's heavy
10	10	equipment inventory.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 23.1242, Tax Code, is amended by
13	13	amending Subsections (b), (e), (f), (g), (j), and (k) and adding
14	14	Subsections (b-1) and (f-1) to read as follows:
15	15	(b) Except for an item of heavy equipment sold to a dealer,
16	16	an item of heavy equipment included in a fleet transaction, an item
17	17	of heavy equipment that is the subject of a subsequent sale, or an
18	18	item of heavy equipment that is subject to a lease or rental, an
19	19	owner or a person who has agreed by contract to pay the owner's
20	20	current year property taxes levied against the owner's heavy
21	21	equipment inventory shall assign a unit property tax to each item of
22	22	heavy equipment sold from a dealer's heavy equipment inventory. In
23	23	the case of a lease or rental, the owner shall assign a unit
24	24	property tax to each item of heavy equipment leased or rented. The
25	25	unit property tax of each item of heavy equipment is determined by
26	26	multiplying the sales price of the item or the monthly lease or
27	27	rental payment received for the item, as applicable, by the unit
28	28	property tax factor. Except as otherwise provided by this
29	29	subsection, if [If] the transaction is a lease or rental, the owner
30	30	shall collect the unit property tax from the lessee or renter at the
31	31	time the lessee or renter submits payment for the lease or
32	32	rental. The owner of the equipment shall state the amount of the
33	33	unit property tax assigned as a separate line item on an
34	34	invoice. If the item of heavy equipment is leased or rented to the
35	35	United States or an agency or instrumentality of the United States,
36	36	the owner of the equipment may not collect the unit property tax
37	37	from the lessee or renter and may not include the amount of the unit
38	38	property tax assigned as a separate line item on an invoice provided
39	39	to the lessee or renter. On or before the 20th day of the month
40	40	following each calendar quarter [month] the owner shall, together
41	41	with the statement filed by the owner as required by this section,
42	42	deposit with the collector an amount equal to the total of unit
43	43	property tax assigned to all items of heavy equipment sold, leased,
44	44	or rented from the dealer's heavy equipment inventory in the
45	45	preceding calendar quarter [month] to which a unit property tax was
46	46	assigned. The money shall be deposited by the collector to the
47	47	credit of the owner's escrow account for prepayment of property
48	48	taxes as provided by this section. An escrow account required by
49	49	this section is used to pay property taxes levied against the
50	50	dealer's heavy equipment inventory, and the owner shall fund the
51	51	escrow account as provided by this subsection.
52	52	(b-1) Not later than December 15 of each year, the collector
53	53	shall provide written notice to each owner for whom the collector
54	54	maintains an escrow account under Subsection (c) of the unit
55	55	property tax factor for the following tax year for each location in
56	56	which the owner's heavy equipment inventory is located.
57	57	(e) The comptroller by rule shall adopt a dealer's heavy
58	58	equipment inventory tax statement form. Each calendar quarter
59	59	[month], a dealer shall complete the form regardless of whether an
60	60	item of heavy equipment is sold, leased, or rented. A dealer may
61	61	use no other form for that purpose. The statement may include the
62	62	information the comptroller considers appropriate but shall
63	63	include at least the following:
64	64	(1) a summary of all items [description of each item]
65	65	of heavy equipment sold, leased, or rented by the dealer during the
66	66	period covered by the statement [including any unique
67	67	identification or serial number affixed to the item by the
68	68	manufacturer];
69	69	(2) the aggregate amount received by the dealer
70	70	attributable to the sales price of or lease or rental payments
71	71	[payment] received for the items [item] of heavy equipment
72	72	described by Subdivision (1) [, as applicable]; and
73	73	(3) the total amount of unit property tax assigned by
74	74	the dealer to the items [of the item] of heavy equipment described
75	75	by Subdivision (1) [, if any; and
76	76	[(4) the reason no unit property tax is assigned if no
77	77	unit property tax is assigned].
78	78	(f) On or before the 20th day of the month following each
79	79	calendar quarter [month], a dealer shall file with the collector
80	80	the statement completed by the dealer summarizing [covering] the
81	81	sale, lease, or rental of all items [each item] of heavy equipment
82	82	sold, leased, or rented by the dealer in the preceding calendar
83	83	quarter [month]. On or before the 20th day of the [a] month
84	84	following a calendar quarter [month] in which a dealer does not
85	85	sell, lease, or rent an item of heavy equipment, the dealer must
86	86	file the statement with the collector and indicate that no sales,
87	87	leases, or rentals were made in the preceding calendar quarter
88	88	[prior month].
89	89	(f-1) A dealer shall [file a copy of the statement with the
90	90	chief appraiser and] retain complete and accurate records
91	91	documenting [documentation relating to] the disposition of all
92	92	items [each item] of heavy equipment sold, leased, or rented by the
93	93	dealer. The comptroller by rule shall prescribe the period for
94	94	which a dealer is required to retain records under this subsection
95	95	[and the lease or rental of each item of heavy equipment]. A chief
96	96	appraiser or collector may examine records [documents] held by a
97	97	dealer as required [provided] by this subsection in the same
98	98	manner, and subject to the same conditions, as provided by Section
99	99	23.1241(g).
100	100	(g) Except as provided by this subsection, Subsection (f)
101	101	applies to any dealer, regardless of whether a dealer owes heavy
102	102	equipment inventory tax for the current year. A dealer who owes no
103	103	heavy equipment inventory tax for the current year because the
104	104	dealer was not in business on January 1:
105	105	(1) shall file the statement required by this section
106	106	showing the information required by this section for each calendar
107	107	quarter [month] that the dealer is in business; and
108	108	(2) may not assign a unit property tax to an item of
109	109	heavy equipment sold by the dealer or remit money with the statement
110	110	except in compliance with the terms of a contract as provided by
111	111	Subsection (k).
112	112	(j) The collector shall remit to each appropriate taxing
113	113	unit the total amount collected by the collector in deficiency
114	114	payments. The assessor of each taxing unit shall apply those funds
115	115	to the taxes owed by the owner. Taxes that are due but not received
116	116	by the collector on or before January 31 are delinquent. Not later
117	117	than February 15, the collector shall distribute to each
118	118	appropriate taxing unit in the manner provided by this section all
119	119	funds collected under authority of this section and held in escrow
120	120	by the collector under this section. The [This section does not
121	121	impose a duty on a] collector shall [to] collect delinquent taxes as
122	122	required by this section regardless of whether [that] the collector
123	123	is [not] otherwise obligated by law or contract to collect the
124	124	delinquent taxes.
125	125	(k) A person who acquires the business or assets of an owner
126	126	may, by contract, agree to pay the current year heavy equipment
127	127	inventory taxes owed by the owner. The person who acquires the
128	128	business or assets of the owner may use the same unit property tax
129	129	factor that the owner who owes the current year tax would use when
130	130	paying the current year tax. The owner who owes the current year
131	131	tax and the person who acquires the business or assets of the owner
132	132	shall jointly notify the chief appraiser and the collector of the
133	133	terms of the agreement and of the fact that the other person has
134	134	agreed to pay the current year heavy equipment inventory taxes owed
135	135	by the dealer. The chief appraiser and the collector shall adjust
136	136	their records accordingly. Notwithstanding Section 23.1241, a
137	137	person who agrees to pay current year heavy equipment inventory
138	138	taxes as provided by this subsection is not required to file a
139	139	declaration until the year following the acquisition. This
140	140	subsection does not relieve the selling owner of the tax liability.
141	141	SECTION 2. This Act applies only to ad valorem taxes imposed
142	142	for an ad valorem tax year that begins on or after the effective
143	143	date of this Act.
144	144	SECTION 3. This Act takes effect January 1, 2026