Bill Text: TX HB1543 | 2019-2020 | 86th Legislature | Enrolled

Texas House Bill 1543 (Prior Session Legislation)

Bill Title: Relating to methods to enhance the enforcement of the collection of the use tax due on certain off-highway vehicles purchased outside this state; providing a civil penalty.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Passed) 2019-06-02 - Effective on 9/1/19 [HB1543 Detail]

Download: Texas-2019-HB1543-Enrolled.html



	H.B. No. 1543




	AN ACT
	relating to methods to enhance the enforcement of the collection of
	the use tax due on certain off-highway vehicles purchased outside
	this state; providing a civil penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 151, Tax Code, is amended by adding
	Subchapter I-2 to read as follows:
	SUBCHAPTER I-2. REPORTS BY MANUFACTURERS OF CERTAIN OFF-HIGHWAY
	VEHICLES PURCHASED OUTSIDE THIS STATE
	Sec. 151.481. DEFINITIONS. In this subchapter:
	(1) "Manufacturer" means a person that manufactures
	off-highway vehicles and is required to hold a manufacturer's
	license under Chapter 2301, Occupations Code.
	(2) "New off-highway vehicle" means an off-highway
	vehicle that has not been the subject of a retail sale.
	(3) "Off-highway vehicle" has the meaning assigned by
	Section 501.0301, Transportation Code.
	Sec. 151.482. REPORTS BY MANUFACTURERS. (a) The
	comptroller shall require each manufacturer to file with the
	comptroller a report not later than March 1 of each year listing
	each warranty issued by the manufacturer for a new off-highway
	vehicle that was, during the preceding calendar year, sold to a
	resident of this state by a retailer located outside this state.
	The report must:
	(1) be in a form prescribed by the comptroller; and
	(2) contain, at a minimum, the following information
	for each warranty:
	(A) the vehicle identification number of the
	vehicle;
	(B) the make, model, and model year of the
	vehicle; and
	(C) the name and address, including street name
	and number, city, and zip code, of the purchaser of the vehicle.
	(b) As soon as practicable after receiving a report
	submitted under this section, the comptroller shall use the
	information in the report to investigate and collect any unpaid use
	taxes imposed under Subchapter D on an off-highway vehicle
	described in the report.
	Sec. 151.483. RULES. The comptroller may adopt rules as
	necessary to implement this subchapter.
	Sec. 151.484. CONFIDENTIALITY. Except as provided by
	Section 111.006, information contained in a report required to be
	filed by this subchapter is confidential and not subject to
	disclosure under Chapter 552, Government Code.
	Sec. 151.485. CIVIL PENALTY. (a) If a manufacturer fails
	to file a report required by this subchapter or fails to file a
	complete report, the comptroller may impose a civil penalty under
	Section 151.703(d).
	(b) In addition to the penalty imposed under Subsection (a),
	a manufacturer shall pay the state a civil penalty of not less than
	$25 or more than $2,000 for each day a violation continues if the
	manufacturer:
	(1) violates this subchapter; or
	(2) violates a rule adopted to administer or enforce
	this subchapter.
	Sec. 151.486. ACTION BY TEXAS DEPARTMENT OF MOTOR VEHICLES.
	If a manufacturer fails to file a report required by this subchapter
	or fails to file a complete report, the comptroller may notify the
	Texas Department of Motor Vehicles of the failure and the
	department may take administrative action against the manufacturer
	for the failure under Chapter 2301, Occupations Code.
	Sec. 151.487. AUDIT; INSPECTION. The comptroller may
	audit, inspect, or otherwise verify a manufacturer's compliance
	with this subchapter.
	Sec. 151.488. ACTION BY ATTORNEY GENERAL; VENUE; ATTORNEY'S
	FEES. (a) The comptroller may bring an action to enforce this
	subchapter and obtain any civil remedy authorized by this
	subchapter or any other law for the violation of this subchapter.
	The attorney general shall prosecute the action on the
	comptroller's behalf.
	(b) Venue for and jurisdiction of an action under this
	section is exclusively conferred on the district courts in Travis
	County.
	(c) If the comptroller prevails in an action under this
	section, the comptroller and attorney general are entitled to
	recover court costs and reasonable attorney's fees incurred in
	bringing the action.
	SECTION 2. Subchapter B, Chapter 501, Transportation Code,
	is amended by adding Section 501.0301 to read as follows:
	Sec. 501.0301. CERTAIN OFF-HIGHWAY VEHICLES PURCHASED
	OUTSIDE THIS STATE. (a) In this section:
	(1) "Off-highway vehicle" means:
	(A) an all-terrain vehicle or recreational
	off-highway vehicle, as those terms are defined by Section 502.001;
	(B) a motorcycle, as that term is defined by
	Section 541.201, other than a motorcycle described by Section
	521.001, that is designed by the manufacturer for off-highway use
	only; or
	(C) a utility vehicle, as that term is defined by
	Section 663.001.
	(2) "Retailer" has the meaning assigned by Section
	151.008, Tax Code.
	(b) A county assessor-collector may not issue a title
	receipt and the department may not issue a certificate of title for
	an off-highway vehicle purchased from a retailer located outside
	this state and designated by the manufacturer as a model year that
	is not more than one year before the year in which the application
	for title is made unless the applicant for the title delivers to the
	assessor-collector or the department, as applicable, satisfactory
	evidence showing that the applicant:
	(1) has paid to the comptroller the applicable use tax
	imposed on the vehicle under Subchapter D, Chapter 151, Tax Code; or
	(2) is not required to pay any taxes described by
	Subdivision (1).
	(c) The comptroller shall promulgate forms to be used by
	each county assessor-collector for purposes of implementing this
	section.
	(d) The comptroller may adopt rules as necessary to
	implement this section, including rules that define "satisfactory
	evidence" for purposes of this section.
	SECTION 3. Not later than March 1, 2020, a manufacturer
	shall submit the first report required by Subchapter I-2, Chapter
	151, Tax Code, as added by this Act.
	SECTION 4. Section 501.0301, Transportation Code, as added
	by this Act, applies only to an application for title that is filed
	on or after March 1, 2020. An application for title that is filed
	before March 1, 2020, is governed by the law in effect on the date
	the application was filed, and the former law is continued in effect
	for that purpose.
	SECTION 5. (a) As soon as practicable after the effective
	date of this Act, the comptroller of public accounts shall
	establish a work group composed of members determined by the
	comptroller and the Tax Assessor-Collectors Association of Texas
	for the purpose of assisting the comptroller in developing the
	forms required by Section 501.0301(c), Transportation Code, as
	added by this Act.
	(b) Not later than March 1, 2020, the forms described by
	Subsection (a) of this section shall be completed and distributed
	to each county assessor-collector in this state.
	(c) This section expires and the work group established
	under Subsection (a) of this section is abolished April 1, 2020.
	SECTION 6. This Act takes effect September 1, 2019.



	______________________________	______________________________
	President of the Senate	Speaker of the House


	I certify that H.B. No. 1543 was passed by the House on April
	30, 2019, by the following vote: Yeas 129, Nays 14, 1 present, not
	voting.

	______________________________
	Chief Clerk of the House


	I certify that H.B. No. 1543 was passed by the Senate on May
	17, 2019, by the following vote: Yeas 29, Nays 2.

	______________________________
	Secretary of the Senate
	APPROVED: _____________________
	Date

	_____________________
	Governor