Bill Text: TX HB2627 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the clarification of certain provisions regarding taxes imposed on the sale, rental, and use of motor vehicles.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2021-05-14 - Referred to Finance [HB2627 Detail]
Download: Texas-2021-HB2627-Introduced.html
87R5765 SMT-F | ||
By: Thierry | H.B. No. 2627 |
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relating to the clarification of certain provisions regarding taxes | ||
imposed on the sale, rental, and use of motor vehicles. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 152.001(14), Tax Code, is amended to | ||
read as follows: | ||
(14) "Nonprofit" means: | ||
(A) organized as a nonprofit corporation that is | ||
governed by Chapter 22, Business Organizations Code [ |
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(B) organized and operated in a way that does not | ||
result in accrual of distributable profits, realization of private | ||
gain resulting from payment of compensation other than reasonable | ||
compensation for services rendered by persons who are not members | ||
of the organization, or realization of any other form of private | ||
gain. | ||
SECTION 2. Section 152.002(c), Tax Code, is amended to read | ||
as follows: | ||
(c) A person who is in the business of selling, renting, or | ||
leasing motor vehicles, who obtains the certificate of title under | ||
Chapter 501, Transportation Code, to a motor vehicle, and who uses | ||
that motor vehicle in this state for business or personal purposes | ||
may deduct its fair market value from the total consideration paid | ||
for a replacement vehicle if: | ||
(1) the person obtains the certificate of title under | ||
Chapter 501, Transportation Code, to the replacement motor vehicle; | ||
(2) the person uses the replacement motor vehicle in | ||
this state for business or personal purposes; and | ||
(3) the replaced motor vehicle is offered for sale. | ||
SECTION 3. The amendments made by this Act are a | ||
clarification of existing law and do not imply that existing law may | ||
be construed as inconsistent with the law as amended by this Act. | ||
SECTION 4. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2021. |