Texas 2025 - 89th Regular

Texas House Bill HB4300 Compare Versions

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

Old	New	Differences
1	1	89R4126 SRA-D
2	2	By: Shaheen H.B. No. 4300
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the exemption of certain motor vehicle sales, gifts,
10	10	and exchanges from motor vehicle sales and use taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Sections 152.001(1) and (2), Tax Code, are
13	13	amended to read as follows:
14	14	(1) "Sale":
15	15	(A) includes:
16	16	(i) [(A)] an installment and credit sale;
17	17	(ii) [(B)] an exchange of property for
18	18	property or money, other than an exchange described by Paragraph
19	19	(B)(i);
20	20	(iii) [(C)] an exchange in which property
21	21	is transferred but the seller retains title as security for payment
22	22	of the purchase price;
23	23	(iv) [(D)] a transaction in which a motor
24	24	vehicle is transferred to another person without payment of
25	25	consideration, other than a transaction described by Paragraph
26	26	(B)(ii) [and that does not qualify as a gift under Section 152.025];
27	27	and
28	28	(v) [(E)] any other closed transaction that
29	29	constitutes a sale; and
30	30	(B) does not include:
31	31	(i) the even exchange of two motor
32	32	vehicles; and
33	33	(ii) the gift of a motor vehicle.
34	34	(2) "Retail sale" means a sale of a motor vehicle
35	35	except:
36	36	(A) the sale of a new motor vehicle in which the
37	37	purchaser is a franchised dealer who is authorized by law and by
38	38	franchise agreement to offer the vehicle for sale as a new motor
39	39	vehicle and who acquires the vehicle either for the exclusive
40	40	purpose of sale in the manner provided by law or for purposes
41	41	allowed under Chapter 503, Transportation Code;
42	42	(B) the sale of a vehicle other than a new motor
43	43	vehicle in which the purchaser is a dealer who holds a dealer's
44	44	general distinguishing number issued under Chapter 503,
45	45	Transportation Code, and who acquires the vehicle either for the
46	46	exclusive purpose of resale in the manner provided by law or for
47	47	purposes allowed under Chapter 503, Transportation Code;
48	48	(C) the sale to a franchised dealer of a new motor
49	49	vehicle removed from the franchised dealer's inventory for the
50	50	purpose of entering into a contract to lease the vehicle to another
51	51	person if, immediately after executing the lease contract, the
52	52	franchised dealer transfers title of the vehicle and assigns the
53	53	lease contract to the lessor of the vehicle; [or]
54	54	(D) the sale of a new motor vehicle in which the
55	55	purchaser is a manufacturer or distributor as those terms are
56	56	defined by Section 2301.002, Occupations Code, who acquires the
57	57	motor vehicle either for the exclusive purpose of sale in the manner
58	58	provided by law or for purposes allowed under Section 503.064,
59	59	Transportation Code; or
60	60	(E) the sale of a used motor vehicle from one
61	61	individual to another individual, provided that the sale takes
62	62	place in this state and the seller is not acting as a motor vehicle
63	63	dealer under Subchapter B, Chapter 503, Transportation Code, in
64	64	relation to the sale.
65	65	SECTION 2. Section 152.041(a), Tax Code, is amended to read
66	66	as follows:
67	67	(a) The tax assessor-collector of the county in which an
68	68	application for registration or for a Texas certificate of title is
69	69	made shall collect taxes imposed by this chapter[, subject to
70	70	Section 152.0412,] unless another person is required by this
71	71	chapter to collect the taxes.
72	72	SECTION 3. Sections 152.062(b) and (c), Tax Code, are
73	73	amended to read as follows:
74	74	(b) The statement must be [in the following form:
75	75	[(1) if a motor vehicle is sold, the seller and
76	76	purchaser shall make] a joint statement by the seller and purchaser
77	77	of the then value in dollars of the total consideration for the
78	78	vehicle[;
79	79	[(2) if the ownership of a motor vehicle is
80	80	transferred as the result of an even exchange, the principal
81	81	parties shall make a joint statement describing the nature of the
82	82	transaction; or
83	83	[(3) if the ownership of a motor vehicle is
84	84	transferred as the result of a gift, the principal parties shall
85	85	make a joint statement describing the nature of the transaction and
86	86	the relationship between the principal parties].
87	87	(c) If a party to a sale[, even exchange, or gift] is a
88	88	corporation, the president, vice-president, secretary, manager, or
89	89	other authorized officer of the corporation shall make the
90	90	statement for the corporation.
91	91	SECTION 4. The following provisions of the Tax Code are
92	92	repealed:
93	93	(1) Section 152.002(f);
94	94	(2) Section 152.024;
95	95	(3) Section 152.025;
96	96	(4) Section 152.0412;
97	97	(5) Sections 152.062(b-1) and (b-2); and
98	98	(6) Section 152.1222.
99	99	SECTION 5. The changes in law made by this Act do not affect
100	100	tax liability accruing before the effective date of this Act. That
101	101	liability continues in effect as if this Act had not been enacted,
102	102	and the former law is continued in effect for the collection of
103	103	taxes due and for civil and criminal enforcement of the liability
104	104	for those taxes.
105	105	SECTION 6. This Act takes effect September 1, 2025.