H.B. No. 4
AN ACT
relating to motor vehicle sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 152.002, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) Notwithstanding Subsection (a), the total consideration
of a used motor vehicle is the amount on which the tax is computed as
provided by Section 152.0412.
SECTION 2. Section 152.041(a), Tax Code, is amended to read
as follows:
(a) The tax assessor-collector of the county in which an
application for registration or for a Texas certificate of title is
made shall collect taxes imposed by this chapter, subject to
Section 152.0412, unless another person is required by this chapter
to collect the taxes.
SECTION 3. Subchapter C, Chapter 152, Tax Code, is amended
by adding Section 152.0412 to read as follows:
Sec. 152.0412. STANDARD PRESUMPTIVE VALUE; USE BY TAX
ASSESSOR-COLLECTOR. (a) In this section, "standard presumptive
value" means the private-party transaction value of a motor
vehicle, as determined by the Texas Department of Transportation
based on an appropriate regional guidebook of a nationally
recognized motor vehicle value guide service, or based on another
motor vehicle guide publication that the department determines is
appropriate if a private-party transaction value for the motor
vehicle is not available from a regional guidebook described by
this subsection.
(b) If the amount paid for a motor vehicle subject to the tax
imposed by this chapter is equal to or greater than 80 percent of
the standard presumptive value of the vehicle, a county tax
assessor-collector shall compute the tax on the amount paid.
(c) If the amount paid for a motor vehicle subject to the tax
imposed by this chapter is less than 80 percent of the standard
presumptive value of the vehicle, a county tax assessor-collector
shall compute the tax on the amount that is equal to 80 percent of
the standard presumptive value of the vehicle, unless the purchaser
establishes the valuation of the vehicle as provided by Subsection
(d).
(d) A county tax assessor-collector shall compute the tax
imposed by this chapter on the valuation of a motor vehicle if the
valuation is shown on:
(1) documentation, including a receipt or invoice,
provided by the seller to the purchaser of the vehicle, but only if
the seller is a motor vehicle dealer operating under Subchapter B,
Chapter 503, Transportation Code, or under similar regulatory
requirements of another state; or
(2) an appraisal certified by an adjuster licensed
under Chapter 4101, Insurance Code, by a motor vehicle dealer
operating under Subchapter B, Chapter 503, Transportation Code, or
by an adjuster or motor vehicle dealer licensed or operating under
similar regulatory requirements of another state.
(d-1) An appraisal described by Subsection (d)(2):
(1) must be on a form prescribed by the comptroller for
that purpose; and
(2) must be obtained by the purchaser of the vehicle
not later than the 20th working day after the date the motor vehicle
is delivered to the purchaser or is brought into this state, as
applicable.
(e) On request, a motor vehicle dealer operating under
Subchapter B, Chapter 503, Transportation Code, or under similar
regulatory requirements of another state shall provide a certified
appraisal of the valuation of a motor vehicle. The comptroller by
rule shall establish a fee that a dealer may charge for providing
the certified appraisal. The county tax assessor-collector shall
retain a copy of a certified appraisal received under this section
for a period prescribed by the comptroller.
(f) The Texas Department of Transportation shall maintain
information on the standard presumptive values of motor vehicles as
part of the department's registration and title system. The
department shall update the information at least quarterly each
calendar year and publish, electronically or otherwise, the updated
information.
(g) This section does not apply to a transaction described
by Section 152.024 or 152.025.
(h) This section does not apply to a motor vehicle disposed
of in accordance with Chapter 2303, Occupations Code, Chapter 70,
Property Code, or Chapter 683, Transportation Code.
(i) This section does not apply to a motor vehicle that is
eligible for a specialty license plate under Section 504.501,
Transportation Code.
(j) The requirements of Section 520.031, Transportation
Code, continue to apply to a transferee of a used motor vehicle who
obtains an appraisal under Subsection (d)(2), and obtaining an
appraisal does not modify those requirements.
SECTION 4. Not later than October 1, 2006, the Texas
Department of Transportation shall:
(1) establish standard presumptive values for motor
vehicles as provided by Section 152.0412, Tax Code, as added by this
Act;
(2) modify the department's registration and title
system as needed to include that information and administer that
section;
(3) make that information available through the system
to all county tax assessor-collectors; and
(4) publish that information and make the published
information available to any requesting person.
SECTION 5. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 6. (a) Except as provided by Subsection (b) of this
section, this Act takes effect July 1, 2006, if this Act 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 effect on that date,
this Act takes effect on the first day of the first month that
begins on or after the 91st day after the last day of the
legislative session.
(b) Section 152.0412, Tax Code, as added by this Act, takes
effect October 1, 2006.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4 was passed by the House on April 24,
2006, by the following vote: Yeas 80, Nays 67, 2 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 4 on May 4, 2006, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 4 on May 8, 2006, by the following vote: Yeas 86, Nays
47, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4 was passed by the Senate, with
amendments, on May 2, 2006, by the following vote: Yeas 21, Nays
10; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
4 on May 8, 2006, by the following vote: Yeas 21, Nays 10.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor