Bill Text: TX SB58 | 2019-2020 | 86th Legislature | Enrolled
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: Bipartisan Bill
Status: (Passed) 2019-06-10 - Effective on 9/1/19 [SB58 Detail]
Download: Texas-2019-SB58-Enrolled.html
S.B. No. 58 |
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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 [ |
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THAN PRODUCTION OF INCOME. | ||
SECTION 2. Sections 11.252(b), (d), and (e), 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; and | ||
(B) 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 [ |
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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), [ |
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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. | ||
(e) The owner of a motor vehicle that is subject to a lease | ||
shall maintain the form, an electronic image of the form, or a | ||
certified copy of the form completed by the lessee of the vehicle | ||
and make the form, electronic image, or certified copy available | ||
for inspection and copying by the chief appraiser of the applicable | ||
appraisal district at all reasonable times. If the owner does not | ||
maintain a completed form, electronic image of the completed form, | ||
or certified copy of the completed form relating to the vehicle, the | ||
owner: | ||
(1) must render the vehicle for taxation in the | ||
applicable rendition statement or property report filed by the | ||
owner under Chapter 22; and | ||
(2) may not file an application for an exemption under | ||
Subsection (a) for the vehicle. | ||
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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 58 passed the Senate on | ||
April 26, 2019, by the following vote: Yeas 30, Nays 0; and that | ||
the Senate concurred in House amendment on May 25, 2019, by the | ||
following vote: Yeas 30, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 58 passed the House, with | ||
amendment, on May 22, 2019, by the following vote: Yeas 143, | ||
Nays 1, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |