Bill Text: TX HB3769 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the ad valorem taxation of certain dealer's heavy equipment inventory.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-04-17 - Left pending in committee [HB3769 Detail]
Download: Texas-2023-HB3769-Introduced.html
88R6758 CJC-F | ||
By: Murr | H.B. No. 3769 |
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relating to the ad valorem taxation of certain dealer's heavy | ||
equipment inventory. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 23.1242, Tax Code, is amended by | ||
amending Subsections (b), (e), (f), (g), (j), (k), and (n) and | ||
adding Subsection (b-1) 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, an item | ||
of heavy equipment that is the subject of a subsequent sale, or an | ||
item of heavy equipment that is subject to a lease or rental, an | ||
owner or a person who has agreed by contract to pay the 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. In | ||
the case of a lease or rental, the owner shall assign a unit | ||
property tax to each item of heavy equipment leased or rented. 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. Except as otherwise provided by this | ||
subsection, if [ |
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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. If the item of heavy equipment is leased or rented to the | ||
United States or an agency or instrumentality of the United States, | ||
the owner of the equipment may not collect the unit property tax | ||
from the lessee or renter and may not include the amount of the unit | ||
property tax assigned as a separate line item on an invoice provided | ||
to the lessee or renter. On or before the 20th day of the month | ||
following each calendar quarter [ |
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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 calendar quarter [ |
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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. | ||
(b-1) Not later than December 15 of each year, the collector | ||
shall provide written notice to each owner for whom the collector | ||
maintains an escrow account under Subsection (c) of the unit | ||
property tax factor for the following tax year for each location in | ||
which the owner's heavy equipment inventory is located. | ||
(e) The comptroller by rule shall adopt a dealer's heavy | ||
equipment inventory tax statement form. Each calendar quarter | ||
[ |
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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 20th day of the month following each | ||
calendar quarter [ |
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the statement covering the sale, lease, or rental of each item of | ||
heavy equipment sold, leased, or rented by the dealer in the | ||
preceding calendar quarter [ |
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the [ |
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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 preceding calendar | ||
quarter [ |
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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). | ||
(g) Except as provided by this subsection, Subsection (f) | ||
applies to any dealer, regardless of whether a dealer owes heavy | ||
equipment inventory tax for the current year. A dealer who owes no | ||
heavy equipment inventory tax for the current year because the | ||
dealer was not in business on January 1: | ||
(1) shall file the statement required by this section | ||
showing the information required by this section for each calendar | ||
quarter [ |
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(2) may not assign a unit property tax to an item of | ||
heavy equipment sold by the dealer or remit money with the statement | ||
except in compliance with the terms of a contract as provided by | ||
Subsection (k). | ||
(j) The collector shall remit to each appropriate taxing | ||
unit the total amount collected by the collector in deficiency | ||
payments. The assessor of each taxing unit shall apply those funds | ||
to the taxes owed by the owner. Taxes that are due but not received | ||
by the collector on or before February 28 [ |
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delinquent. Not later than March 31 [ |
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shall distribute to each appropriate taxing unit in the manner | ||
provided by this section all funds collected under authority of | ||
this section and held in escrow by the collector under this | ||
section. The [ |
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shall [ |
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regardless of whether [ |
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obligated by law or contract to collect the delinquent taxes. | ||
(k) A person who acquires the business or assets of an owner | ||
may, by contract, agree to pay the current year heavy equipment | ||
inventory taxes owed by the owner. The person who acquires the | ||
business or assets of the owner may use the same unit property tax | ||
factor that the owner who owes the current year tax would use when | ||
paying the current year tax. The owner who owes the current year | ||
tax and the person who acquires the business or assets of the owner | ||
shall jointly notify the chief appraiser and the collector of the | ||
terms of the agreement and of the fact that the other person has | ||
agreed to pay the current year heavy equipment inventory taxes owed | ||
by the dealer. The chief appraiser and the collector shall adjust | ||
their records accordingly. Notwithstanding Section 23.1241, a | ||
person who agrees to pay current year heavy equipment inventory | ||
taxes as provided by this subsection is not required to file a | ||
declaration until the year following the acquisition. This | ||
subsection does not relieve the selling owner of the tax liability. | ||
(n) An owner who fails to remit unit property taxes due as | ||
required by this section shall pay a penalty of five percent of the | ||
amount due. If the amount is not paid within 10 days after the due | ||
date, the owner shall pay an additional penalty of five percent of | ||
the amount due. Notwithstanding this section, unit property taxes | ||
paid on or before February 28 [ |
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date on which they are due are not delinquent. The collector, the | ||
collector's designated agent, or the county or district attorney | ||
shall enforce this subsection. A penalty under this subsection is | ||
in addition to any other penalty provided by law if the owner's | ||
taxes are delinquent. | ||
SECTION 2. Section 31.02(a), Tax Code, is amended to read as | ||
follows: | ||
(a) Except as provided by Subsection (b) of this section and | ||
by Sections 23.1242, 31.03, and 31.04 [ |
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on receipt of the tax bill and are delinquent if not paid before | ||
February 1 of the year following the year in which imposed. | ||
SECTION 3. This Act applies only to ad valorem taxes imposed | ||
for an ad valorem tax year that begins on or after the effective | ||
date of this Act. | ||
SECTION 4. This Act takes effect January 1, 2024. |