| 1 | 1 | | By: Lambert H.B. No. 3952 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the exemption of motor vehicles transferred from a |
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| 9 | 9 | | decedent's estate. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 152.025(a), Tax Code, is amended to read |
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| 12 | 12 | | as follows: |
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| 13 | 13 | | (a) A tax is imposed on the recipient of a gift of a motor |
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| 14 | 14 | | vehicle. This section applies only if the person receiving the |
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| 15 | 15 | | motor vehicle: |
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| 16 | 16 | | (1) receives the vehicle from: |
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| 17 | 17 | | (A) the person's: |
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| 18 | 18 | | (i) spouse; |
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| 19 | 19 | | (ii) parent or stepparent; |
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| 20 | 20 | | (iii) grandparent or grandchild; |
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| 21 | 21 | | (iv) child or stepchild; |
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| 22 | 22 | | (v) sibling; or |
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| 23 | 23 | | (vi) guardian; |
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| 24 | 24 | | [(B) a decedent's estate;] |
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| 25 | 25 | | (B) [(C)] a trust subject to the Texas Trust Code |
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| 26 | 26 | | (Subtitle B, Title 9, Property Code) that was revocable by a |
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| 27 | 27 | | decedent or that was jointly revocable by a decedent and the |
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| 28 | 28 | | decedent's spouse; or |
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| 29 | 29 | | (C) [(D)] a trust subject to the Texas Trust Code |
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| 30 | 30 | | that is revocable by the person receiving the motor vehicle or that |
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| 31 | 31 | | is jointly revocable by the recipient and the recipient's spouse; |
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| 32 | 32 | | (2) is a trust subject to the Texas Trust Code that is |
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| 33 | 33 | | revocable by the transferor of the motor vehicle or that is jointly |
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| 34 | 34 | | revocable by the transferor and the transferor's spouse; or |
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| 35 | 35 | | (3) is exempt from federal income taxation under |
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| 36 | 36 | | Section 501(a), Internal Revenue Code of 1986, by being listed as an |
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| 37 | 37 | | exempt organization under Section 501(c)(3) of that code, and the |
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| 38 | 38 | | vehicle will be used for the purposes of the organization. |
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| 39 | 39 | | SECTION 2. Section 152.062(b-2), Tax Code, is amended to |
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| 40 | 40 | | read as follows: |
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| 41 | 41 | | (b-2) A joint statement required by Subsection (b)(3) that |
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| 42 | 42 | | relates to a gift from a person [or estate] described by Section |
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| 43 | 43 | | 152.025(a)(1) must be filed in person by the recipient of the gift |
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| 44 | 44 | | or, as applicable, the person from whom the gift is received [or a |
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| 45 | 45 | | person authorized to act on behalf of the estate from which the gift |
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| 46 | 46 | | is received]. A motor vehicle title service required to be licensed |
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| 47 | 47 | | under Chapter 520, Transportation Code, may not be used to file the |
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| 48 | 48 | | statement. The person who files the statement must present to the |
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| 49 | 49 | | tax assessor-collector an unexpired identification document issued |
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| 50 | 50 | | to the person that bears the person's photograph and is: |
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| 51 | 51 | | (1) a driver's license or personal identification card |
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| 52 | 52 | | issued by this state or another state of the United States; |
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| 53 | 53 | | (2) an original United States passport or an original |
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| 54 | 54 | | passport issued by a foreign country; |
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| 55 | 55 | | (3) an identification card or similar form of |
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| 56 | 56 | | identification issued by the Texas Department of Criminal Justice; |
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| 57 | 57 | | (4) a United States military identification card; or |
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| 58 | 58 | | (5) an identification card or document issued by the |
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| 59 | 59 | | United States Department of Homeland Security or United States |
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| 60 | 60 | | Citizenship and Immigration Services. |
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| 61 | 61 | | SECTION 3. Subchapter E, Chapter 152, Tax Code, is amended |
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| 62 | 62 | | by adding Section 152.094 as follows: |
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| 63 | 63 | | Sec. 152.094. MOTOR VEHICLE ACQUIRED BY A DISTRUBUTEE. |
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| 64 | 64 | | (a) In this section, "distribute" and "estate" have the |
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| 65 | 65 | | meanings assigned by Chapter 22, Estates Code. |
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| 66 | 66 | | (b) The taxes imposed by this chapter do not apply to a motor |
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| 67 | 67 | | vehicle acquired under Section 501.031, Transportation Code or from |
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| 68 | 68 | | an estate by a distributee. |
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| 69 | 69 | | SECTION 4. The change in law made by this Act does not |
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| 70 | 70 | | affect tax liability accruing before the effective date of this |
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| 71 | 71 | | Act. That liability continues in effect as if this Act had not been |
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| 72 | 72 | | enacted, and the former law is continued in effect for the |
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| 73 | 73 | | collection of taxes due and for civil and criminal enforcement of |
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| 74 | 74 | | the liability for those taxes. |
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| 75 | 75 | | SECTION 5. This Act takes effect September 1, 2025. |
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