Bill Text: TX HB2779 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the taxation and titling of certain off-road vehicles; providing penalties.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-03-18 - Referred to Ways & Means [HB2779 Detail]
Download: Texas-2013-HB2779-Introduced.html
83R338 BEF-D | ||
By: Frank | H.B. No. 2779 |
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relating to the taxation and titling of certain off-road vehicles; | ||
providing penalties. | ||
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 (21) 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. | ||
(21) "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. Subchapter A, Chapter 152, Tax Code, is amended | ||
by adding Section 152.004 to read as follows: | ||
Sec. 152.004. APPLICABILITY OF REGISTRATION PROVISIONS TO | ||
CERTAIN MOTOR VEHICLES. A provision of this chapter requiring a | ||
motor vehicle to be registered or requiring a person to apply for | ||
registration of a motor vehicle does not apply to a motor vehicle | ||
that is not required to be registered under Chapter 502, | ||
Transportation Code. | ||
SECTION 3. Section 152.022, Tax Code, is amended by | ||
amending Subsection (a) and adding Subsection (a-1) to read as | ||
follows: | ||
(a) A use tax is imposed on a motor vehicle, other than an | ||
off-road vehicle, purchased at retail sale outside this state and | ||
used on the public highways of this state by a Texas resident or | ||
other person who is domiciled or doing business in this state. | ||
(a-1) A use tax is imposed on a motor vehicle that is an | ||
off-road vehicle purchased at retail sale outside this state and | ||
used in this state by a Texas resident or other person who is | ||
domiciled or doing business in this state. | ||
SECTION 4. Section 152.028, Tax Code, is amended by | ||
amending Subsection (a) and adding Subsection (a-1) to read as | ||
follows: | ||
(a) A use tax is imposed on the operator of a motor vehicle, | ||
other than an off-road vehicle, that was purchased tax-free under | ||
Section 152.092 [ |
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state for use on the public highways of this state. The tax is | ||
imposed at the time the motor vehicle is brought back into this | ||
state. | ||
(a-1) A use tax is imposed on the operator of a motor vehicle | ||
that is an off-road vehicle that was purchased tax-free under | ||
Section 152.092 and that is brought back into this state for use in | ||
this state. The tax is imposed at the time the motor vehicle is | ||
brought back into this state. | ||
SECTION 5. Section 152.0411, Tax Code, is amended by | ||
amending Subsection (c) and adding Subsection (c-1) to read as | ||
follows: | ||
(c) Except as provided by Subsection (c-1), this [ |
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section applies only to the sale of a vehicle that is to be titled | ||
and registered in Texas. If a purchaser intends to register a | ||
vehicle outside Texas, the purchaser shall comply with the terms of | ||
Section 152.092. | ||
(c-1) This section applies to the sale of a motor vehicle | ||
that is an off-road vehicle that is to be titled in this state. This | ||
section does not apply to the sale of a motor vehicle that is an | ||
off-road vehicle that is to be titled outside this state. If a | ||
purchaser intends to title a motor vehicle that is an off-road | ||
vehicle outside this state, the purchaser shall comply with Section | ||
152.092. | ||
SECTION 6. Section 152.061, Tax Code, is amended by adding | ||
Subsection (d) to read as follows: | ||
(d) An owner of a motor vehicle that is an off-road vehicle | ||
purchased for rental may furnish a rental certificate as provided | ||
by Subsection (a). The Texas Department of Motor Vehicles by rule | ||
shall provide procedures for accepting a rental certificate and | ||
issuing a title for a rental off-road vehicle. A reference in this | ||
chapter to a motor vehicle registered as a rental vehicle applies to | ||
a rental off-road vehicle for which the owner has complied with this | ||
section and rules adopted under this section. | ||
SECTION 7. Section 152.082, Tax Code, is amended to read as | ||
follows: | ||
Sec. 152.082. SALE OF MOTOR VEHICLE TO OR USE OF MOTOR | ||
VEHICLE BY PUBLIC AGENCY. The taxes imposed by this chapter do not | ||
apply to the sale of a motor vehicle to or use of a motor vehicle by | ||
a public agency if: | ||
(1) the motor vehicle is operated with an exempt | ||
license plate issued under Section 502.451 [ |
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Transportation Code; or | ||
(2) the motor vehicle is an off-road vehicle. | ||
SECTION 8. Section 152.083(b), Tax Code, is amended to read | ||
as follows: | ||
(b) This exemption applies only if the person purchasing the | ||
motor vehicle to be leased presents the tax assessor-collector a | ||
form prescribed and provided by the comptroller and showing: | ||
(1) the identification of the motor vehicle; | ||
(2) the name and address of the lessor and the lessee; | ||
and | ||
(3) unless the motor vehicle is an off-road vehicle, | ||
verification by an officer of the public agency to which the motor | ||
vehicle will be leased that the agency will operate the vehicle with | ||
an exempt license plate issued under Section 502.451 [ |
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SECTION 9. 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). | ||
(b-1) In addition to the other requirements prescribed by | ||
this section, to claim an exemption provided by Subsection (a) or | ||
(b) the person purchasing, using, or leasing the machine, trailer, | ||
[ |
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certificate with a registration number issued by the comptroller | ||
under Section 151.1551. | ||
(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. To claim the | ||
exemption, the person renting the vehicle must also provide on the | ||
certificate a registration number issued by the comptroller under | ||
Section 151.1551. | ||
(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 10. Section 152.102(a), Tax Code, is amended to | ||
read as follows: | ||
(a) A person commits an offense if the person knowingly | ||
operates a motor vehicle on a highway of this state, or knowingly | ||
operates a motor vehicle that is an off-road vehicle in this state, | ||
without paying the tax imposed by this chapter on the vehicle. | ||
SECTION 11. 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, 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, regardless of | ||
whether the vehicle is exempt from taxation under Chapter 152, Tax | ||
Code. This section does not apply to 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 12. 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 13. 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 14. Not later than December 1, 2013, the Texas | ||
Department of Motor Vehicles and the comptroller of public accounts | ||
shall adopt any rules necessary to implement the changes in law made | ||
by this Act. | ||
SECTION 15. (a) Except as provided by Subsection (b) of | ||
this section, this Act takes effect January 1, 2014. | ||
(b) Section 14 of this Act takes effect September 1, 2013. |