Bill Text: TX SB58 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to the exemption from ad valorem taxation of leased motor vehicles that are not held primarily for the production of income by the lessee.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2018-11-12 - Filed [SB58 Detail]

Download: Texas-2019-SB58-Introduced.html
  86R1860 LHC-F
 
  By: Zaffirini S.B. No. 58
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exemption from ad valorem taxation of leased motor
  vehicles that are not held primarily for the production of income by
  the lessee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 11.252, Tax Code, is
  amended to read as follows:
         Sec. 11.252.  MOTOR VEHICLES LEASED FOR [PERSONAL] USE OTHER
  THAN PRODUCTION OF INCOME.
         SECTION 2.  Sections 11.252(b) and (d), Tax Code, are
  amended to read as follows:
         (b)  For purposes of this section, a motor vehicle is
  presumed to be used primarily for activities that do not involve the
  production of income if:
               (1)  50 percent or more of the miles the motor vehicle
  is driven in a year are for non-income producing purposes;
               (2)  the motor vehicle is leased to this state or a
  political subdivision of this state; or
               (3)  the motor vehicle:
                     (A)  is leased to an organization that is exempt
  from federal income taxation under Section 501(a), Internal Revenue
  Code of 1986, as an organization described by Section 501(c)(3) of
  that code;
                     (B)  is used exclusively by the organization for
  religious, educational, or charitable purposes; and
                     (C)  would be exempt from taxation if the vehicle
  were owned by the organization.
         (d)  In connection with the requirements and procedures
  under Subsection (c), the comptroller by rule shall adopt a form to
  be completed by the lessee of a motor vehicle for which the owner of
  the vehicle may apply for an exemption under Subsection (a). The
  form shall require a [the] lessee who is an individual to provide
  the lessee's name, address, and driver's license or personal
  identification certificate number. The form shall require a lessee
  that is an entity described by Subsection (b) to provide the
  lessee's name, address, and, if applicable, federal tax
  identification number. The form shall require a lessee who is an
  individual, or the authorized representative of a lessee that is an
  entity described by Subsection (b), [and] to certify under oath
  that the lessee does not hold the vehicle for the production of
  income and that the vehicle is used primarily for activities that do
  not involve the production of income. The comptroller shall
  include on the form a notice of the penalties prescribed by Section
  37.10, Penal Code, for making a false statement on the form.
         SECTION 3.  The changes in law made by this Act apply only to
  ad valorem taxes imposed for a tax year beginning on or after the
  effective date of this Act.
         SECTION 4.  This Act takes effect September 1, 2019.
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