Bill Text: TX HB2476 | 2011-2012 | 82nd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the appraisal for ad valorem tax purposes of certain dealer's heavy equipment inventory; providing penalties.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Passed) 2011-06-17 - Effective on 1/1/12 [HB2476 Detail]
Download: Texas-2011-HB2476-Introduced.html
Bill Title: Relating to the appraisal for ad valorem tax purposes of certain dealer's heavy equipment inventory; providing penalties.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Passed) 2011-06-17 - Effective on 1/1/12 [HB2476 Detail]
Download: Texas-2011-HB2476-Introduced.html
82R7938 ALL-F | ||
By: Harless | H.B. No. 2476 |
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relating to the appraisal for ad valorem tax purposes of certain | ||
dealer's heavy equipment inventory; providing penalties. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Effective January 1, 2012, Sections | ||
23.1241(a)(1), (2), (7), and (9), Tax Code, are amended to read as | ||
follows: | ||
(1) "Dealer" means a person engaged in the business in | ||
this state of selling, leasing, or renting heavy equipment, | ||
regardless of whether the person is registered under Section | ||
23.1243. | ||
(2) "Dealer's heavy equipment inventory" means all | ||
items of heavy equipment that a dealer holds for sale, lease, or | ||
rent during a 12-month period [ |
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(7) "Sales price" means[ |
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to a dealer for the purchase of an item of heavy equipment[ |
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(9) "Total annual sales" means the total of the: | ||
(A) sales price for each sale from a dealer's | ||
heavy equipment inventory in a 12-month period; and | ||
(B) lease and rental payments received for each | ||
lease or rental of heavy equipment inventory in a 12-month period. | ||
SECTION 2. Effective January 1, 2012, Section 23.1241, Tax | ||
Code, is amended by amending Subsections (b), (e), and (j) and | ||
adding Subsection (b-1) to read as follows: | ||
(b) For the purpose of the computation of property tax,[ |
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inventory on January 1 is the total annual sales, less sales to | ||
dealers and[ |
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12-month period corresponding to the preceding tax year, divided by | ||
12[ |
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(b-1) For the purpose of the computation of property tax on | ||
the market value of the dealer's heavy equipment inventory, the | ||
sales price of an item of heavy equipment that is sold during the | ||
preceding tax year after being leased or rented for a portion of | ||
that same tax year is considered to be the sum of the sales price of | ||
the item plus the total lease and rental payments received for the | ||
item in the preceding tax year. | ||
(e) A dealer is presumed to be an owner of a dealer's heavy | ||
equipment inventory on January 1 if, in the 12-month period ending | ||
on December 31 of the preceding year, the dealer sold, leased, or | ||
rented an item of heavy equipment to a person other than a dealer. | ||
The presumption is not rebutted by the fact that a dealer has no | ||
item of heavy equipment physically on hand for sale from the | ||
dealer's heavy equipment inventory on January 1. | ||
(j) In addition to other penalties provided by law, a dealer | ||
who fails to file or fails to timely file a declaration required by | ||
Subsection (f) shall forfeit a penalty. A tax lien attaches to the | ||
dealer's business personal property to secure payment of the | ||
penalty. The appropriate district attorney, criminal district | ||
attorney, or county attorney may [ |
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established by this section in the name of the [ |
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collector. The chief appraiser may collect the penalty in the name | ||
of the chief appraiser. The chief appraiser or the appropriate | ||
district attorney, criminal district attorney, or county attorney | ||
may sue to enforce compliance with this section. Venue of an action | ||
brought under this subsection, including an action for injunctive | ||
relief, is in the county in which the violation occurred or in the | ||
county in which the owner maintains the owner's principal place of | ||
business or residence. The court may award attorney's fees to a | ||
chief appraiser, district attorney, criminal district attorney, or | ||
county attorney who prevails in a suit to collect a penalty or | ||
enforce compliance with this section. A penalty forfeited under | ||
this subsection is $1,000 for each month or part of a month in which | ||
a declaration is not filed or timely filed after it is due. | ||
SECTION 3. Effective January 1, 2012, Section | ||
23.1242(a)(2), Tax Code, is amended to read as follows: | ||
(2) "Dealer's heavy equipment inventory," | ||
"declaration," "dealer," "sales price," [ |
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"total annual sales" have the meanings assigned those terms by | ||
Section 23.1241. | ||
SECTION 4. Effective January 1, 2012, Sections 23.1242(b), | ||
(e), (f), and (m), Tax Code, are amended to read as follows: | ||
(b) Except for an item of heavy equipment sold to a dealer | ||
or[ |
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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, leased, or rented from a dealer's | ||
heavy equipment inventory. 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. If the transaction | ||
is a lease or rental with an option to purchase, 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. 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. | ||
(e) The comptroller by rule shall adopt a dealer's heavy | ||
equipment inventory tax statement form. Each month, a dealer shall | ||
complete the form regardless of whether an item of heavy equipment | ||
is sold, leased, or rented. A dealer may use no other form for that | ||
purpose. The statement may include the information the comptroller | ||
considers appropriate but shall include at least the following: | ||
(1) a description of each item of heavy equipment | ||
sold, leased, or rented including any unique identification or | ||
serial number affixed to the item by the manufacturer; | ||
(2) the sales price of or lease or rental payment | ||
received for the item of heavy equipment, as applicable; | ||
(3) the unit property tax of the item of heavy | ||
equipment, if any; and | ||
(4) the reason no unit property tax is assigned if no | ||
unit property tax is assigned. | ||
(f) On or before the 10th day of each month, a dealer shall | ||
file with the collector the statement covering the sale, lease, or | ||
rental of each item of heavy equipment sold, leased, or rented by | ||
the dealer in the preceding month. On or before the 10th day of a | ||
month following a month in which a dealer does not sell, lease, or | ||
rent an item of heavy equipment, the dealer must file the statement | ||
with the collector and indicate that no sales, leases, or rentals | ||
were made in the prior month. A dealer shall file a copy of the | ||
statement with the chief appraiser and retain documentation | ||
relating to the disposition of each item of heavy equipment sold and | ||
the lease or rental of each item of heavy equipment. A chief | ||
appraiser or collector may examine documents held by a dealer as | ||
provided by this subsection in the same manner, and subject to the | ||
same conditions, as provided by Section 23.1241(g). | ||
(m) In addition to other penalties provided by law, a dealer | ||
who fails to file or fails to timely file a statement as required by | ||
this section shall forfeit a penalty. A tax lien attaches to the | ||
dealer's [ |
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the penalty. The appropriate district attorney, criminal district | ||
attorney, or county attorney may [ |
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established by this section in the name of the [ |
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collector. The chief appraiser may collect the penalty in the name | ||
of the chief appraiser. The chief appraiser or the appropriate | ||
district attorney, criminal district attorney, or county attorney | ||
may sue to enforce compliance with this section. Venue of an action | ||
brought under this subsection, including an action for injunctive | ||
relief, is in the county in which the violation occurred or in the | ||
county in which the owner maintains the owner's principal place of | ||
business or residence. The court may award attorney's fees to a | ||
chief appraiser, district attorney, criminal district attorney, or | ||
county attorney who prevails in a suit to collect a penalty or | ||
enforce compliance with this section. A penalty forfeited under | ||
this subsection is $500 for each month or part of a month in which a | ||
statement is not filed or timely filed after it is due. | ||
SECTION 5. Subchapter B, Chapter 23, Tax Code, is amended by | ||
adding Section 23.1243 to read as follows: | ||
Sec. 23.1243. REGISTRY OF PERSONS DEALING IN HEAVY | ||
EQUIPMENT. (a) In this section, "heavy equipment" has the meaning | ||
assigned by Section 23.1241. | ||
(b) The comptroller shall develop and maintain a registry | ||
containing information on each person who engages in the sale, | ||
lease, or rental of more than five items of heavy equipment in a | ||
calendar year in this state. | ||
(c) A person may not engage in the activity described by | ||
Subsection (b) if the person has not registered with the | ||
comptroller. A person who is required to register under this | ||
subsection shall reapply for registration not later than January 1 | ||
of each year and, if any of the information required to be provided | ||
under Subsection (d) materially changes, not later than the 30th | ||
day after the date the change occurs. A person who is registered | ||
and who is subsequently not required to register under this section | ||
may remove the person's name and information from the registry on | ||
request. | ||
(d) The comptroller shall adopt rules and forms to implement | ||
this section. The rules must require a person who is required to | ||
register to provide the person's name, residence address, and | ||
business address and the location and general description of the | ||
heavy equipment to be sold, leased, or rented. | ||
(e) On request, the comptroller shall make information in | ||
the registry available to a chief appraiser, tax assessor, or | ||
designee of a chief appraiser or tax assessor. | ||
(f) The comptroller by rule may prescribe a registration | ||
application fee in an amount necessary to defray the expense of | ||
developing and maintaining the registry. | ||
(g) A person commits an offense if the person engages in the | ||
sale, lease, or rental of more than five items of heavy equipment in | ||
a year in this state and fails to apply for registration in | ||
compliance with the comptroller's rules adopted under this section. | ||
An offense under this subsection is a Class C misdemeanor. | ||
SECTION 6. Effective January 1, 2012, the following | ||
provisions of the Tax Code are repealed: | ||
(1) Sections 23.1241(a)(3) and (8); and | ||
(2) Sections 23.1241(i) and 23.1242(l). | ||
SECTION 7. (a) This Act applies only to ad valorem taxes | ||
imposed for a tax year beginning on or after the effective date of | ||
this Act. | ||
(b) A person is not required to register or apply for | ||
registration under Section 23.1243, Tax Code, as added by this Act, | ||
before January 1, 2012. | ||
SECTION 8. Except as otherwise provided by this Act, this | ||
Act takes effect September 1, 2011. |