Bill Text: TX HB2591 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the appraisal for ad valorem tax purposes of certain dealer's heavy equipment.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-04-02 - Left pending in committee [HB2591 Detail]
Download: Texas-2015-HB2591-Introduced.html
84R10984 CJC-F | ||
By: Phillips | H.B. No. 2591 |
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relating to the appraisal for ad valorem tax purposes of certain | ||
dealer's heavy equipment. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 23.1241(a)(1), (2), (7), (8), and (9), | ||
Tax Code, are amended to read as follows: | ||
(1) "Dealer" means a person engaged in the business in | ||
this state of selling[ |
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term does not include a bank, savings bank, savings and loan | ||
association, credit union, or other finance company. In addition, | ||
for purposes of taxation of a person's inventory of heavy equipment | ||
in a tax year, the term does not include a person who renders the | ||
person's inventory of heavy equipment for taxation in that tax year | ||
by filing a rendition statement or property report in accordance | ||
with Chapter 22. | ||
(2) "Dealer's heavy equipment inventory" means all | ||
items of heavy equipment that a dealer holds for sale at retail [ |
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includes items of heavy equipment that are leased or rented for a | ||
term of 12 months or less and subject to a purchase option by the | ||
lessee or renter. | ||
(7) "Sales price" means: | ||
(A) the total amount of money paid or to be paid | ||
to a dealer for the purchase of an item of heavy equipment; or | ||
(B) for a lease or rental with an option to | ||
purchase, the total amount of the lease or rental payments plus any | ||
final consideration, excluding interest. | ||
(8) "Subsequent sale" means a dealer-financed sale of | ||
an item of heavy equipment that, at the time of the sale, has been | ||
the subject of a dealer-financed sale from the same dealer's heavy | ||
equipment inventory in the same calendar year. The term includes a | ||
lease or rental of an item of heavy equipment for a term of 12 months | ||
or less that is subject to a purchase option by the lessee or renter | ||
if, at the time of the lease or rental, the item has been the subject | ||
of a lease or rental from the same dealer's heavy equipment | ||
inventory in the same calendar year. [ |
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(9) "Total annual sales" means the total of the[ |
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heavy equipment inventory in a 12-month period[ |
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SECTION 2. Sections 23.1241(b) and (e), Tax Code, are | ||
amended to read as follows: | ||
(b) For the purpose of the computation of property tax: | ||
(1) [ |
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inventory on January 1 is the total annual sales, less sales to | ||
dealers, fleet transactions, and subsequent sales, for the 12-month | ||
period corresponding to the preceding tax year, divided by 12; and | ||
(2) a sale is considered to occur when possession of an | ||
item of heavy equipment is transferred from the dealer to the | ||
purchaser. | ||
(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[ |
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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. | ||
SECTION 3. Sections 23.1242(b), (e), and (f), Tax Code, are | ||
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, or an | ||
item of heavy equipment that is the subject of a subsequent sale, | ||
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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 from a dealer's heavy equipment | ||
inventory. [ |
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determined by multiplying the sales price of the item [ |
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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[ |
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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[ |
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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, [ |
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serial number affixed to the item by the manufacturer; | ||
(2) the sales price of [ |
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(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[ |
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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[ |
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with the collector and indicate that no sales[ |
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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 | ||
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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). | ||
SECTION 4. Section 23.1241(b-1), Tax Code, is repealed. | ||
SECTION 5. This Act applies only to ad valorem taxes imposed | ||
for a tax year beginning on or after the effective date of this Act. | ||
SECTION 6. This Act takes effect January 1, 2016. |