Bill Text: TX HB1003 | 2013-2014 | 83rd Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the prepayment of taxes on heavy equipment that is subject to a lease or rental.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-02-18 - Referred to Ways & Means [HB1003 Detail]

Download: Texas-2013-HB1003-Introduced.html
  83R3943 CJC-F
 
  By: Gonzales H.B. No. 1003
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the prepayment of taxes on heavy equipment that is
  subject to a lease or rental.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 23.1242(b), Tax Code, is amended to read
  as follows:
         (b)  Except for an item of heavy equipment sold to a dealer,
  an item of heavy equipment included in a fleet transaction, an item
  of heavy equipment that is the subject of a subsequent sale, or an
  item of heavy equipment that is subject to a lease or rental, an
  owner or a person who has agreed by contract to pay the owner's
  current year property taxes levied against the owner's heavy
  equipment inventory shall assign a unit property tax to each item of
  heavy equipment sold from a dealer's heavy equipment inventory.  In
  the case of a lease or rental, the owner shall assign a unit
  property tax to each item of heavy equipment leased or rented.  The
  unit property tax of each item of heavy equipment is determined by
  multiplying the sales price of the item or the monthly lease or
  rental payment received for the item, as applicable, by the unit
  property tax factor.  Except as otherwise provided by this
  subsection, if [If] the transaction is a lease or rental, the owner
  shall collect the unit property tax from the lessee or renter at the
  time the lessee or renter submits payment for the lease or
  rental.  The owner of the equipment shall state the amount of the
  unit property tax assigned as a separate line item on an
  invoice.  If the item of heavy equipment is leased or rented to the
  state or a political subdivision of the state, the owner of the
  equipment may not collect the unit property tax from the lessee or
  renter and may not include the amount of the unit property tax
  assigned as a separate line item on an invoice provided to the
  lessee or renter. On or before the 10th day of each month the owner
  shall, together with the statement filed by the owner as required by
  this section, deposit with the collector an amount equal to the
  total of unit property tax assigned to all items of heavy equipment
  sold, leased, or rented from the dealer's heavy equipment inventory
  in the preceding month to which a unit property tax was
  assigned.  The money shall be deposited by the collector to the
  credit of the owner's escrow account for prepayment of property
  taxes as provided by this section.  An escrow account required by
  this section is used to pay property taxes levied against the
  dealer's heavy equipment inventory, and the owner shall fund the
  escrow account as provided by this subsection.
         SECTION 2.  The change in law made by this Act applies only
  to the collection of taxes by an owner of heavy equipment from
  certain lessees or renters of that equipment that become due on or
  after the effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2013.
feedback