Bill Text: TX HB4326 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to imposing a local fee on the sale or lease of a new luxury motor vehicle in certain areas.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-25 - Referred to Ways & Means [HB4326 Detail]
Download: Texas-2019-HB4326-Introduced.html
86R14285 SMT-D | ||
By: Martinez | H.B. No. 4326 |
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relating to imposing a local fee 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. FEE 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 are 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) "New luxury motor vehicle" means a new motor | ||
vehicle that has a gross sale or lease price of at least $55,000. | ||
(5) "Qualifying municipality" means a municipality | ||
located in: | ||
(A) a county described by Section 352.002(a)(11) | ||
or (18); or | ||
(B) a county that borders at least two counties | ||
described by Section 352.002(a)(11). | ||
(b) Except to the extent of a conflict, words used in this | ||
chapter and defined by Chapter 152 have the meanings assigned by | ||
Chapter 152. | ||
Sec. 328.002. FEE IMPOSED; AMOUNT. (a) A fee is imposed on | ||
each retail sale or lease of a new luxury motor vehicle by a | ||
franchised dealer at a dealership in a qualifying municipality or | ||
the extraterritorial jurisdiction of that municipality. | ||
(b) The amount of the fee is equal to one percent of the | ||
gross sale or lease price of the new luxury motor vehicle. | ||
Sec. 328.003. APPLICABILITY OF FEE. (a) The fee 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 fee 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) A sale or lease of a motor vehicle that is exempted from | ||
the state tax imposed under Chapter 152 by Subchapter E of that | ||
chapter is exempt from the fee imposed by this chapter. | ||
Sec. 328.004. COLLECTION OF FEE. (a) Each franchised | ||
dealer that sells or leases a new luxury motor vehicle at a | ||
dealership in a qualifying municipality or the extraterritorial | ||
jurisdiction of that municipality shall collect the fee for the | ||
benefit of the municipality in which the dealership is located. | ||
(b) If the dealership at which the sale or lease occurred is | ||
located in a qualifying municipality or in the extraterritorial | ||
jurisdiction of that municipality, the franchised dealer shall | ||
remit the fee to that municipality as provided by that | ||
municipality. | ||
(c) The franchised dealer shall add the fee imposed by this | ||
chapter and any tax imposed under Chapter 152 to the sale or lease | ||
price, and when the fee and 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 to which a franchised dealer is required | ||
to remit fees under this chapter shall by ordinance prescribe | ||
recordkeeping, reporting, and payment requirements and penalties, | ||
including interest charges, for failure to keep records required by | ||
the municipality, to report when required, or to pay the fee when | ||
due. The attorney acting for the municipality may bring suit | ||
against a franchised dealer who fails to collect a fee under this | ||
chapter and to pay it over to the municipality as required. | ||
(e) A municipality by ordinance may permit a franchised | ||
dealer who is required to collect a fee 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 fee. The municipality may provide that the franchised dealer | ||
may retain the amount only if the dealer pays the fee and files | ||
reports as required by the municipality. | ||
Sec. 328.005. USE OF REVENUE. A municipality may use | ||
revenue from the fee imposed under this chapter only to: | ||
(1) construct, maintain, or improve public roadways; | ||
(2) construct, maintain, or improve drainage or | ||
stormwater management or detention facilities; and | ||
(3) construct, maintain, or improve flood control or | ||
prevention facilities. | ||
SECTION 2. As soon as possible after the effective date of | ||
this Act, but not later than December 31, 2019, each municipality to | ||
which a franchised dealer will be required to remit fees under | ||
Section 328.004(b), Tax Code, as added by this Act, shall adopt any | ||
ordinances necessary to govern the collection and enforcement of | ||
the fee 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 on or after January 1, 2020. 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, 2019. |