Bill Text: TX HB3443 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to imposing a local tax on the sale or lease of a new luxury motor vehicle in certain areas.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-31 - Referred to Ways & Means [HB3443 Detail]
Download: Texas-2017-HB3443-Introduced.html
85R8923 CBH-D | ||
By: Martinez | H.B. No. 3443 |
|
||
|
||
relating to imposing a local tax on the sale or lease of a new luxury | ||
motor vehicle in certain areas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 3, Tax Code, is amended by | ||
adding Chapter 328 to read as follows: | ||
CHAPTER 328. TAX ON SALE OR LEASE OF NEW LUXURY MOTOR VEHICLE IN | ||
CERTAIN AREAS | ||
Sec. 328.001. DEFINITIONS. (a) In this chapter: | ||
(1) "Dealership" has the meaning assigned by Section | ||
2301.002, Occupations Code. | ||
(2) "Gross sale or lease price" means: | ||
(A) the price at which a new luxury motor vehicle | ||
and any accessories attached on or before sale is offered for sale, | ||
before any discount or trade-in; and | ||
(B) the total amount to be paid under a lease | ||
agreement for a new luxury motor vehicle, before any discount or | ||
trade-in. | ||
(3) "Lease" means an agreement, other than a rental, | ||
by a franchised dealer to give for longer than 180 days exclusive | ||
use of a new luxury motor vehicle to another for consideration. | ||
(4) "Lower Rio Grande Valley" means the region | ||
included in the Lower Rio Grande Valley Development Council. | ||
(5) "New luxury motor vehicle" means a new motor | ||
vehicle that has a gross sale or lease price of at least $60,000. | ||
(b) Except to the extent of conflict, words used in this | ||
chapter and defined by Chapter 152 have the meanings assigned by | ||
Chapter 152. | ||
Sec. 328.002. TAX IMPOSED; RATE. (a) A tax is imposed on | ||
each retail sale or lease of a new luxury motor vehicle by a | ||
franchised dealer at a dealership in the Lower Rio Grande Valley. | ||
(b) The rate of the tax is 0.2 percent of the gross sale or | ||
lease price of the new luxury motor vehicle. | ||
Sec. 328.003. APPLICABILITY OF TAX. (a) The tax authorized | ||
by this chapter on the sale of a new luxury motor vehicle does not | ||
apply to the sale of a new luxury motor vehicle unless the state tax | ||
imposed under Chapter 152 also applies. | ||
(b) The tax authorized by this chapter on the lease of a new | ||
luxury motor vehicle applies to the lease of a new luxury motor | ||
vehicle in each situation in which the transaction is not | ||
considered a sale for purposes of the imposition of the state tax | ||
under Chapter 152. | ||
(c) The exemptions provided by Subchapter E, Chapter 152, | ||
apply to the tax imposed under this chapter. | ||
Sec. 328.004. COLLECTION OF TAX. (a) Each franchised | ||
dealer that sells or leases a new luxury motor vehicle at a | ||
dealership in the Lower Rio Grande Valley shall collect the tax for | ||
the benefit of the municipality or county in which the dealership is | ||
located. | ||
(b) If the dealership at which the sale or lease occurred is | ||
located in a municipality, the franchised dealer shall remit the | ||
tax to that municipality as provided by that municipality. If the | ||
dealership at which the sale or lease occurred is not located in a | ||
municipality, the franchised dealer shall remit the tax to the | ||
county in which the dealership is located as provided by that | ||
county. | ||
(c) The franchised dealer shall add the tax imposed by this | ||
chapter and any tax imposed under Chapter 152 to the sale or lease | ||
price, and when the taxes are added the total amount is a debt owed | ||
to the franchised dealer by the purchaser or lessee until paid. If | ||
the total amount is not paid, the unpaid amount is recoverable at | ||
law in the same manner the original sale or lease price may be | ||
recovered. | ||
(d) A municipality or county to which a franchised dealer is | ||
required to remit taxes under this chapter shall by ordinance or | ||
order prescribe recordkeeping, reporting, and payment requirements | ||
and penalties, including interest charges, for failure to keep | ||
records required by the municipality or county, to report when | ||
required, or to pay the tax when due. The attorney acting for the | ||
municipality or county may bring suit against a franchised dealer | ||
who fails to collect a tax under this chapter and to pay it over to | ||
the municipality or county as required. | ||
(e) A municipality by ordinance or a county by order may | ||
permit a franchised dealer who is required to collect a tax under | ||
this chapter to retain a percentage of the amount collected and | ||
required to be reported as reimbursement to the franchised dealer | ||
for the costs of collecting the tax. The municipality or county may | ||
provide that the franchised dealer may retain the amount only if the | ||
person pays the tax and files reports as required by the | ||
municipality or county. | ||
Sec. 328.005. USE OF REVENUE. A municipality or county may | ||
use revenue from the tax imposed under this chapter only to | ||
construct or maintain public roadways. | ||
SECTION 2. As soon as possible after the effective date of | ||
this Act, but not later than December 31, 2017, each municipality | ||
and county to which a franchised dealer will be required to remit | ||
taxes under Section 328.004(b), Tax Code, as added by this Act, | ||
shall adopt any ordinances or orders necessary to govern the | ||
collection and enforcement of the tax imposed under Chapter 328, | ||
Tax Code, as added by this Act. | ||
SECTION 3. This Act applies only to a sale or lease of a new | ||
luxury motor vehicle in the Lower Rio Grande Valley on or after | ||
January 1, 2018. A sale or lease that occurs before that date is | ||
governed by the law in effect on the date the sale or lease | ||
occurred, and that law is continued in effect for that purpose. | ||
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, 2017. |