By: Lambert H.B. No. 3952
A BILL TO BE ENTITLED
AN ACT
relating to the exemption of motor vehicles transferred from a
decedent's estate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 152.025(a), Tax Code, is amended to read
as follows:
(a) A tax is imposed on the recipient of a gift of a motor
vehicle. This section applies only if the person receiving the
motor vehicle:
(1) receives the vehicle from:
(A) the person's:
(i) spouse;
(ii) parent or stepparent;
(iii) grandparent or grandchild;
(iv) child or stepchild;
(v) sibling; or
(vi) guardian;
[(B) a decedent's estate;]
(B) [(C)] a trust subject to the Texas Trust Code
(Subtitle B, Title 9, Property Code) that was revocable by a
decedent or that was jointly revocable by a decedent and the
decedent's spouse; or
(C) [(D)] a trust subject to the Texas Trust Code
that is revocable by the person receiving the motor vehicle or that
is jointly revocable by the recipient and the recipient's spouse;
(2) is a trust subject to the Texas Trust Code that is
revocable by the transferor of the motor vehicle or that is jointly
revocable by the transferor and the transferor's spouse; or
(3) is exempt from federal income taxation under
Section 501(a), Internal Revenue Code of 1986, by being listed as an
exempt organization under Section 501(c)(3) of that code, and the
vehicle will be used for the purposes of the organization.
SECTION 2. Section 152.062(b-2), Tax Code, is amended to
read as follows:
(b-2) A joint statement required by Subsection (b)(3) that
relates to a gift from a person [or estate] described by Section
152.025(a)(1) must be filed in person by the recipient of the gift
or, as applicable, the person from whom the gift is received [or a
person authorized to act on behalf of the estate from which the gift
is received]. A motor vehicle title service required to be licensed
under Chapter 520, Transportation Code, may not be used to file the
statement. The person who files the statement must present to the
tax assessor-collector an unexpired identification document issued
to the person that bears the person's photograph and is:
(1) a driver's license or personal identification card
issued by this state or another state of the United States;
(2) an original United States passport or an original
passport issued by a foreign country;
(3) an identification card or similar form of
identification issued by the Texas Department of Criminal Justice;
(4) a United States military identification card; or
(5) an identification card or document issued by the
United States Department of Homeland Security or United States
Citizenship and Immigration Services.
SECTION 3. Subchapter E, Chapter 152, Tax Code, is amended
by adding Section 152.094 as follows:
Sec. 152.094. MOTOR VEHICLE ACQUIRED BY A DISTRUBUTEE.
(a) In this section, "distribute" and "estate" have the
meanings assigned by Chapter 22, Estates Code.
(b) The taxes imposed by this chapter do not apply to a motor
vehicle acquired under Section 501.031, Transportation Code or from
an estate by a distributee.
SECTION 4. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 5. This Act takes effect September 1, 2025.