Bill Text: TX HB2237 | 2011-2012 | 82nd Legislature | Engrossed
Bill Title: Relating to the taxation and titling of certain off-road vehicles.
Spectrum: Moderate Partisan Bill (Republican 16-2)
Status: (Engrossed - Dead) 2011-05-20 - Left pending in committee [HB2237 Detail]
Download: Texas-2011-HB2237-Engrossed.html
82R21473 ALL-F | ||
By: Lyne, et al. | H.B. No. 2237 |
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relating to the taxation and titling of certain off-road vehicles. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 152.001, Tax Code, is amended by | ||
amending Subdivision (3) and adding Subdivision (20) to read as | ||
follows: | ||
(3) "Motor vehicle [ |
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(A) a self-propelled vehicle designed to | ||
transport persons or property on a public highway; | ||
(B) a trailer and semitrailer, including a van, | ||
flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or | ||
converter gear; [ |
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(C) a house trailer as defined by Chapter 501, | ||
Transportation Code; and | ||
(D) an off-road vehicle that is not required to | ||
be registered under Chapter 502, Transportation Code. | ||
(20) "Off-road vehicle" means: | ||
(A) an all-terrain vehicle or a recreational | ||
off-highway vehicle, as those terms are defined by Section 502.001, | ||
Transportation Code, provided that the vehicle may be designed by | ||
the manufacturer primarily for farming; or | ||
(B) a motorcycle designed by the manufacturer for | ||
off-highway use. | ||
SECTION 2. Section 152.091, Tax Code, is amended to read as | ||
follows: | ||
Sec. 152.091. FARM OR TIMBER USE. (a) The taxes imposed by | ||
this chapter do not apply to the sale or use of [ |
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(1) a farm machine, a trailer, a [ |
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an off-road vehicle for use primarily for farming and ranching, | ||
including the rearing of poultry, and use in feedlots; or | ||
(2) a machine, a trailer, a [ |
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off-road vehicle for use primarily for timber operations. | ||
(b)(1) The taxes imposed by this chapter do not apply to the | ||
purchase of [ |
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(A) a farm machine, a trailer, a [ |
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semitrailer, or an off-road vehicle that is to be leased for use | ||
primarily for farming and ranching, including the rearing of | ||
poultry, and use in feedlots; or | ||
(B) a machine, a trailer, a [ |
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an off-road vehicle that is to be leased for use primarily for | ||
timber operations. | ||
(2) The exemption provided by this subsection applies | ||
only if the person purchasing the machine, trailer, [ |
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semitrailer, or off-road vehicle to be leased presents the tax | ||
assessor-collector a form prescribed and provided by the | ||
comptroller showing: | ||
(A) the identification of the motor vehicle; | ||
(B) the name and address of the lessor and the | ||
lessee; and | ||
(C) verification by the lessee that the machine, | ||
trailer, [ |
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primarily for: | ||
(i) farming and ranching, including the | ||
rearing of poultry, and use in feedlots; or | ||
(ii) timber operations. | ||
(3) If a motor vehicle for which the tax has not been | ||
paid ceases to be leased for use primarily for farming and ranching, | ||
including the rearing of poultry, and use in feedlots or timber | ||
operations, the owner shall notify the comptroller on a form | ||
provided by the comptroller and shall pay the sales or use tax on | ||
the motor vehicle based on the owner's book value of the motor | ||
vehicle. The tax is imposed at the same percentage rate that is | ||
provided by Section 152.021(b). | ||
(c) The taxes imposed by this chapter do not apply to the | ||
rental of a farm machine, a trailer, [ |
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off-road vehicle for use primarily for farming and ranching, | ||
including the rearing of poultry, and use in feedlots, or a machine, | ||
a trailer, [ |
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primarily for timber operations. The tax that would have been | ||
remitted on gross rental receipts without this exemption shall be | ||
deemed to have been remitted for the purpose of calculating the | ||
minimum gross rental receipts imposed by Section 152.026. The | ||
exemption provided by this subsection applies only if the owner of | ||
the motor vehicle obtains in good faith an exemption certificate | ||
from the person to whom the vehicle is being rented. | ||
(d) For purposes of this section, a machine or an off-road | ||
vehicle is used "primarily for timber operations" if the machine or | ||
off-road vehicle is a self-propelled motor vehicle that is | ||
specially adapted to perform a specialized function in the | ||
production of timber, including land preparation, planting, | ||
maintenance, and gathering of trees commonly grown for commercial | ||
timber. The term does not include a self-propelled motor vehicle | ||
used to transport timber or timber products. | ||
SECTION 3. Subchapter B, Chapter 501, Transportation Code, | ||
is amended by adding Section 501.0225 to read as follows: | ||
Sec. 501.0225. CERTIFICATE OF TITLE REQUIRED FOR OFF-ROAD | ||
VEHICLE. A person who purchases, imports, or otherwise acquires an | ||
off-road vehicle, as defined by Section 152.001, Tax Code, that is | ||
not required to be registered under Chapter 502 may not operate or | ||
permit the operation of the vehicle in this state, or sell or | ||
dispose of the vehicle in this state, until the person obtains a | ||
certificate of title for the vehicle. This section does not apply | ||
to: | ||
(1) an off-road vehicle that is exempt from motor | ||
vehicle sales and use taxation under Section 152.091, Tax Code; or | ||
(2) an off-road vehicle acquired and sold or disposed | ||
of by a lienholder exercising a statutory or contractual lien right | ||
with regard to the vehicle, except that this section does apply to | ||
the purchaser of that vehicle. | ||
SECTION 4. Section 501.0225, Transportation Code, as added | ||
by this Act, applies only to a person who purchases, imports, or | ||
otherwise acquires an off-road vehicle on or after the effective | ||
date of this Act. A person who purchases, imports, or otherwise | ||
acquires an off-road vehicle before the effective date of this Act | ||
is governed by the law in effect immediately before the effective | ||
date of this Act, and the former law is continued in effect for that | ||
purpose. | ||
SECTION 5. 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 6. This Act takes effect September 1, 2011. |