Bill Text: TX HB2004 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the tax imposed on the purchase of a motor vehicle by the lessee on termination of the lease.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-08 - Referred to Ways & Means [HB2004 Detail]
Download: Texas-2023-HB2004-Introduced.html
88R4719 BEF-D | ||
By: Thompson of Brazoria | H.B. No. 2004 |
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relating to the tax imposed on the purchase of a motor vehicle by | ||
the lessee on termination of the lease. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 152.001, Tax Code, is amended by | ||
amending Subdivision (2) and adding Subdivision (21) to read as | ||
follows: | ||
(2) "Retail sale" means a sale of a motor vehicle | ||
except: | ||
(A) the sale of a new motor vehicle in which the | ||
purchaser is a franchised dealer who is authorized by law and by | ||
franchise agreement to offer the vehicle for sale as a new motor | ||
vehicle and who acquires the vehicle either for the exclusive | ||
purpose of sale in the manner provided by law or for purposes | ||
allowed under Chapter 503, Transportation Code; | ||
(B) the sale of a vehicle other than a new motor | ||
vehicle in which the purchaser is a dealer who holds a dealer's | ||
general distinguishing number issued under Chapter 503, | ||
Transportation Code, and who acquires the vehicle either for the | ||
exclusive purpose of resale in the manner provided by law or for | ||
purposes allowed under Chapter 503, Transportation Code; | ||
(C) the sale to a franchised dealer of a new motor | ||
vehicle removed from the franchised dealer's inventory for the | ||
purpose of entering into a contract to lease the vehicle to another | ||
person if, immediately after executing the lease contract, the | ||
franchised dealer transfers title of the vehicle and assigns the | ||
lease contract to the lessor of the vehicle; [ |
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(D) the sale of a new motor vehicle in which the | ||
purchaser is a manufacturer or distributor as those terms are | ||
defined by Section 2301.002, Occupations Code, who acquires the | ||
motor vehicle either for the exclusive purpose of sale in the manner | ||
provided by law or for purposes allowed under Section 503.064, | ||
Transportation Code; or | ||
(E) the sale of a vehicle other than a new motor | ||
vehicle in a lease buyout. | ||
(21) "Lease buyout" means the purchase of a motor | ||
vehicle that is the subject of a lease agreement by the lessee of | ||
the vehicle under the lease agreement from the lessor on | ||
termination of the lease agreement. The term does not include the | ||
purchase of a motor vehicle by the lessee if the lessor has offered | ||
the vehicle for sale to persons other than the lessee. | ||
SECTION 2. Subchapter B, Chapter 152, Tax Code, is amended | ||
by adding Section 152.029 to read as follows: | ||
Sec. 152.029. TAX ON LEASE BUYOUT. (a) A tax is imposed on | ||
the purchaser of a motor vehicle in a lease buyout. | ||
(b) The tax is $5. | ||
(c) No transfer of title in a lease buyout shall be | ||
accomplished until the tax has been paid. | ||
SECTION 3. Section 152.0412(g), Tax Code, is amended to | ||
read as follows: | ||
(g) This section does not apply to a transaction described | ||
by Section 152.024, [ |
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SECTION 4. Sections 152.062(b) and (c), Tax Code, are | ||
amended to read as follows: | ||
(b) The statement must be in the following form: | ||
(1) if a motor vehicle is sold, other than in a lease | ||
buyout, the seller and purchaser shall make a joint statement of the | ||
then value in dollars of the total consideration for the vehicle; | ||
(2) if the ownership of a motor vehicle is transferred | ||
as the result of an even exchange, the principal parties shall make | ||
a joint statement describing the nature of the transaction; [ |
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(3) if the ownership of a motor vehicle is transferred | ||
as the result of a gift, the principal parties shall make a joint | ||
statement describing the nature of the transaction and the | ||
relationship between the principal parties; or | ||
(4) if a motor vehicle is purchased in a lease buyout, | ||
the seller and purchaser shall make a joint statement describing | ||
the nature of the transaction and shall provide a copy of the lease | ||
agreement. | ||
(c) If a party to a sale, even exchange, [ |
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buyout is a corporation, the president, vice-president, secretary, | ||
manager, or other authorized officer of the corporation shall make | ||
the statement for the corporation. | ||
SECTION 5. Section 152.063, Tax Code, is amended by adding | ||
Subsection (i) to read as follows: | ||
(i) The seller of a motor vehicle in a lease buyout shall | ||
keep, at the seller's principal office for at least four years from | ||
the date of the sale, a copy of the lease agreement and a complete | ||
record of the lease buyout, including an invoice showing the total | ||
consideration for the lease buyout. | ||
SECTION 6. 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 7. This Act takes effect September 1, 2023. |