H.B. No. 315

AN ACT relating to the applicability of the law governing the ad valorem taxation of a dealer’s motor vehicle inventory.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 23.121

(a)(3), Tax Code, is amended to read as follows:
(3) “Dealer” means a person who holds a dealer’s general distinguishing number issued by the Texas Department of Motor Vehicles under the authority of Chapter 503, Transportation Code, or who is legally recognized as a motor vehicle dealer pursuant to the law of another state and who complies with the terms of Section 152.063(f). The term does not include:
(A) a person who holds a manufacturer’s license issued under Chapter 2301, Occupations Code;
(B) an entity that is owned or controlled by a person who holds a manufacturer’s license issued under Chapter 2301, Occupations Code; [or]
(C) a dealer whose general distinguishing number issued by the Texas Department of Motor Vehicles under the authority of Chapter 503, Transportation Code, prohibits the dealer from selling a vehicle to any person except a dealer; or
(D) a dealer who:
(i) does not sell motor vehicles described by Section 152.001(3)(A);
(ii) meets either of the following requirements:
(a) the total annual sales from the dealer’s motor vehicle inventory, less sales to dealers, fleet transactions, and subsequent sales, for the 12-month period corresponding to the preceding tax year are 25 percent or less of the dealer’s total revenue from all sources during that period; or
(b) the dealer did not sell a motor vehicle to a person other than another dealer during the 12-month period corresponding to the preceding tax year and the dealer estimates that the dealer’s total annual sales from the dealer’s motor vehicle inventory, less sales to dealers, fleet transactions, and subsequent sales, for the 12-month period corresponding to the current tax year will be 25 percent or less of the dealer’s total revenue from all sources during that period;
(iii) not later than August 31 of the preceding tax year, filed with the chief appraiser and the collector a declaration on a form prescribed by the comptroller stating that the dealer elected not to be treated as a dealer under this section in the current tax year; and
(iv) renders the dealer’s motor vehicle inventory in the current tax year by filing a rendition with the chief appraiser in the manner provided by Chapter 22.

SECTION 2. Section 23.121,

Tax Code, is amended by adding Subsection (a-1) to read as follows:
(a-1) A dealer who has elected to file the declaration described by Subsection (a)(3)(D)(iii) and to render the dealer’s motor vehicle inventory as provided by Subsection (a)(3)(D)(iv) must continue to file the declaration and render the dealer’s motor vehicle inventory so long as the dealer meets the requirements of Subsection

(a)(3)(D)(ii)(a) or (b). SECTION 3.

This Act applies only to the ad valorem taxation of a dealer’s motor vehicle inventory for a tax year beginning on or after the effective date of this Act. SECTION 4. This Act takes effect January 1, 2014.

______________________________ ______________________________
President of the Senate Speaker of the House

I certify that H.B. No. 315 was passed by the House on May 10, 2013, by the following vote: Yeas 143, Nays 0, 2 present, not voting; and that the House concurred in Senate amendments to H.B. No. 315 on May 24, 2013, by the following vote: Yeas 146, Nays 0, 1 present, not voting.

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Chief Clerk of the House

I certify that H.B. No. 315 was passed by the Senate, with amendments, on May 22, 2013, by the following vote: Yeas 31, Nays 0.

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Secretary of the Senate
APPROVED: __________________
Date

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Governor