TAX CODE
CHAPTER 152. TAXES ON SALE, RENTAL, AND USE OF MOTOR VEHICLES
SUBCHAPTER A. GENERAL PROVISIONS
§ 152.001. DEFINITIONS. In this chapter:
(1) "Sale" includes:
(A) an installment and credit sale;
(B) an exchange of property for property or
money;
(C) an exchange in which property is transferred
but the seller retains title as security for payment of the purchase
price; and
(D) any other closed transaction that
constitutes a sale.
(2) "Retail sale" means a sale of a motor vehicle
except:
(A) the sale of a new motor vehicle in which the
purchaser is a franchised dealer who is authorized by law and by
franchise agreement to offer the vehicle for sale as a new motor
vehicle and who acquires the vehicle either for the exclusive
purpose of sale in the manner provided by law or for purposes
allowed under Chapter 503, Transportation Code;
(B) the sale of a vehicle other than a new motor
vehicle in which the purchaser is a dealer who holds a dealer's
general distinguishing number issued under Chapter 503,
Transportation Code, and who acquires the vehicle either for the
exclusive purpose of resale in the manner provided by law or for
purposes allowed under Chapter 503, Transportation Code; or
(C) the sale to a franchised dealer of a new motor
vehicle removed from the franchised dealer's inventory for the
purpose of entering into a contract to lease the vehicle to another
person if, immediately after executing the lease contract, the
franchised dealer transfers title of the vehicle and assigns the
lease contract to the lessor of the vehicle.
(3) "Motor Vehicle" includes:
(A) a self-propelled vehicle designed to
transport persons or property on a public highway;
(B) a trailer and semitrailer, including a van,
flatbed, tank, dumpster, dolly, jeep, stinger, auxiliary axle, or
converter gear; and
(C) a house trailer as defined by Chapter 501,
Transportation Code.
(4) "Motor Vehicle" does not include:
(A) a device moved only by human power;
(B) a device used exclusively on stationary rails
or tracks;
(C) road-building machinery;
(D) a mobile office;
(E) a vehicle with respect to which the
certificate of title has been surrendered in exchange for:
(i) a salvage vehicle title issued pursuant
to Chapter 501, Transportation Code;
(ii) a certificate of authority issued
pursuant to Chapter 683, Transportation Code;
(iii) a nonrepairable vehicle title issued
pursuant to Chapter 501, Transportation Code;
(iv) an ownership document issued by
another state if the document is comparable to a document issued
pursuant to Subparagraph (i), (ii), or (iii); or
(F) a vehicle that has been declared a total loss
by an insurance company pursuant to the settlement or adjustment of
a claim.
(5) "Rental" means:
(A) an agreement by the owner of a motor vehicle
to give for not longer than 180 days the exclusive use of that
vehicle to another for consideration;
(B) an agreement by the original manufacturer of
a motor vehicle to give exclusive use of the motor vehicle to
another for consideration; or
(C) an agreement to give exclusive use of a motor
vehicle to another for re-rental purposes.
(6) "Lease" means an agreement, other than a rental,
by an owner of a motor vehicle to give for longer than 180 days
exclusive use of the vehicle to another for consideration.
(7) "Public agency" means:
(A) a department, commission, board, office,
institution, or other agency of this state or of a county, city,
town, school district, hospital district, water district, or other
special district or authority or political subdivision created by
or under the constitution or the statutes of this state; or
(B) an unincorporated agency or instrumentality
of the United States.
(8) "Gross rental receipts" means value received or
promised as consideration to the owner of a motor vehicle for rental
of the vehicle, but does not include:
(A) separately stated charges for insurance;
(B) charges for damages to the motor vehicle
occurring during the rental agreement period;
(C) separately stated charges for motor fuel sold
by the owner of the motor vehicle; or
(D) discounts.
(9) "Owner of a motor vehicle" means:
(A) a person named in the certificate of title as
the owner of the vehicle; or
(B) a person who has the exclusive use of a motor
vehicle by reason of a rental and holds the vehicle for re-rental.
(10) "Orthopedically handicapped person" means a
person who because of a physical impairment is unable to operate or
reasonably be transported in a motor vehicle that has not been
specially modified.
(11) "Volunteer fire department" means a company,
department, or association whose members receive no or nominal
compensation and which is organized for the purpose of answering
fire alarms and extinguishing fires or answering fire alarms,
extinguishing fires, and providing emergency medical services.
(12) "Motor vehicle used for religious purposes" means
a motor vehicle that is:
(A) designed to carry more than six passengers;
(B) sold to, rented to, or used by a church or
religious society;
(C) used primarily for the purpose of providing
transportation to and from a church or religious service or
meeting; and
(D) not registered as a passenger vehicle and not
used primarily for the personal or official needs or duties of a
minister.
(13) "Farm machine" means a self-propelled motor
vehicle specially adapted for use in the production of crops or
rearing of livestock, including poultry, and use in feedlots and
includes a self-propelled motor vehicle specially adapted for
applying plant food materials, agricultural chemicals, or feed for
livestock. "Farm machine" does not include any self-propelled motor
vehicle specifically designed or specially adapted for the sole
purpose of transporting agricultural products, plant food
materials, agricultural chemicals, or feed for livestock.
(14) "Nonprofit" means:
(A) organized as a nonprofit corporation under
the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
Vernon's Texas Civil Statutes); or
(B) organized and operated in a way that does not
result in accrual of distributable profits, realization of private
gain resulting from payment of compensation other than reasonable
compensation for services rendered by persons who are not members
of the organization, or realization of any other form of private
gain.
(15) "Seller-financed sale" means a retail sale of a
motor vehicle by a dealer licensed under Chapter 503,
Transportation Code, in which the seller collects all or part of the
total consideration in periodic payments and retains a lien on the
motor vehicle until all payments have been received. The term does
not include a:
(A) retail sale of a motor vehicle in which a
person other than the seller provides the consideration for the
sale and retains a lien on the motor vehicle as collateral;
(B) lease; or
(C) rental.
(16) "Mobile office" means a trailer designed to be
used as an office, sales outlet, or other workplace.
(17) "Lessor" means a person who acquires title to a
new motor vehicle for the purpose of leasing the vehicle to another
person.
(18) "New motor vehicle" means a motor vehicle that,
without regard to mileage, has not been the subject of a retail tax.
(19) "Franchised dealer" has the meaning assigned the
term by Chapter 503, Transportation Code.
Acts 1981, 67th Leg., p. 1586, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1981, 67th Leg., p. 2759, ch. 752, § 5(c), eff.
Jan. 1, 1982; Acts 1983, 68th Leg., p. 3211, ch. 553, § 1, 2,
eff. Sept. 1, 1983; Acts 1989, 71st Leg., ch. 606, § 4, eff. Jan.
1, 1990; Acts 1991, 72nd Leg., ch. 524, § 2, eff. Sept. 1, 1991;
Acts 1993, 73rd Leg., ch. 29, § 1, eff. Oct. 1, 1993; Acts 1993,
73rd Leg., ch. 169, § 3, eff. Aug. 30, 1993; Acts 1993, 73rd
Leg., ch. 587, § 18, eff. Oct. 1, 1993; Acts 1995, 74th Leg., ch.
76, § 17.01(49), eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch.
1015, § 1, eff. Jan. 1, 1996; Acts 1997, 75th Leg., ch. 165, §
30.251, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1040, §
26, eff. Oct. 1, 1997; Acts 2003, 78th Leg., ch. 1325, § 17.08,
eff. Sept. 1, 2003.
§ 152.002. TOTAL CONSIDERATION. (a) "Total
consideration" means the amount paid or to be paid for a motor
vehicle and its accessories attached on or before the sale, without
deducting:
(1) the cost of the motor vehicle;
(2) the cost of material, labor or service, interest
paid, loss, or any other expense;
(3) the cost of transportation of the motor vehicle
before its sale; or
(4) the amount of manufacturers' or importers' excise
tax imposed on the motor vehicle by the United States.
(b) "Total consideration" does not include:
(1) a cash discount;
(2) a full cash or credit refund to a customer of the
sales price of a motor vehicle returned to the seller;
(3) the amount charged for labor or service rendered
in installing, applying, remodeling, or repairing the motor vehicle
sold;
(4) a financing, carrying, or service charge or
interest on credit extended on a motor vehicle sold under a
conditional sale or other deferred payment contract;
(5) the value of a motor vehicle taken by a seller as
all or a part of the consideration for sale of another motor
vehicle, including any cash payment to the buyer under Section
348.404, Finance Code;
(6) a charge for transportation of the motor vehicle
after a sale; or
(7) motor vehicle inventory tax.
(c) A person who is in the business of selling, renting, or
leasing motor vehicles, who obtains the certificate of title to a
motor vehicle, and who uses that motor vehicle for business or
personal purposes may deduct its fair market value from the total
consideration paid for a replacement vehicle if:
(1) the person obtains the certificate of title to the
replacement motor vehicle;
(2) the person uses the replacement motor vehicle for
business or personal purposes; and
(3) the replaced motor vehicle is offered for sale.
(d) A person who holds a vehicle lessor license under
Chapter 2301, Occupations Code, or is specifically not required to
obtain a lessor license under Section 2301.254(a) of that code may
deduct the fair market value of a replaced motor vehicle that has
been leased for longer than 180 days and is titled to another person
if:
(1) either person:
(A) holds a beneficial ownership interest in the
other person of at least 80 percent; or
(B) acquires all of its vehicles exclusively from
franchised dealers whose franchisor shares common ownership with
the other person; and
(2) the replaced motor vehicle is offered for sale.
(e) A person who is a motor vehicle owner, is in the business
of renting motor vehicles, and holds a permit may deduct the fair
market value of a replaced motor vehicle that is titled to another
person if:
(1) either person:
(A) holds a beneficial ownership interest in the
other person of at least 80 percent; or
(B) acquires all of its vehicles exclusively from
franchised dealers whose franchisor shares common ownership with
the other person; and
(2) the replaced motor vehicle is offered for sale.
Acts 1981, 67th Leg., p. 1587, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1995, 74th Leg., ch. 945, § 5, eff. Jan. 1, 1996;
Acts 1999, 76th Leg., ch. 1042, § 2, eff. Aug. 30, 1999; Acts
1999, 76th Leg., ch. 1467, § 2.30, eff. Oct. 1, 1999; Acts 2001,
77th Leg., ch. 1263, § 26, eff. Oct. 1, 2001; Acts 2003, 78th
Leg., ch. 1276, § 14A.816, eff. Sept. 1, 2003.
§ 152.003. DUTIES OF COMPTROLLER. (a) The comptroller
may:
(1) supervise the collection of taxes imposed by this
chapter; and
(2) establish rules for the determination of taxable
value of motor vehicles and the administration of this chapter.
(b) The comptroller shall furnish a copy of the rules to
each county tax assessor-collector.
(c) All county tax assessors-collectors shall consistently
apply the rules authorized by this section to the determination of
taxable value of each motor vehicle purchased in the state or
taxable under the use tax levied by this chapter.
Acts 1981, 67th Leg., p. 1588, ch. 389, § 1, eff. Jan. 1, 1982.
SUBCHAPTER B. IMPOSITION OF TAX
§ 152.021. RETAIL SALES TAX. (a) A tax is imposed on
every retail sale of every motor vehicle sold in this state. Except
as provided by this chapter, the tax is an obligation of and shall
be paid by the purchaser of the motor vehicle.
(b) The tax rate is 6-1/4 percent of the total
consideration.
Acts 1981, 67th Leg., p. 1588, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1, § 6,
eff. Aug. 1, 1984; Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 6,
§ 1; Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 16.02, eff.
Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 29, § 2, eff. Oct. 1,
1993; Acts 1995, 74th Leg., ch. 1015, § 2, eff. Jan. 1, 1996.
§ 152.0215. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
Text of section effective until September 30, 2008
(a) A surcharge is imposed on every retail sale, lease, or
use of every on-road diesel motor vehicle that is over 14,000 pounds
and that is sold, leased, or used in this state. The amount of the
surcharge for a vehicle of a model year 1996 or earlier is 2.5
percent of the total consideration and for a vehicle of a model year
1997 or later, one percent of the total consideration.
(b) The surcharge shall be collected at the same time and in
the same manner and shall be administered and enforced in the same
manner as the tax imposed under this chapter. The comptroller by
rule shall adopt any additional procedures needed for the
collection, administration, and enforcement of the surcharge
authorized by this section and shall deposit all remitted
surcharges to the credit of the Texas emissions reduction plan
fund.
(c) This section expires September 30, 2008.
Added by Acts 2001, 77th Leg., ch. 967, § 3, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 1331, § 22, eff. July 1,
2003.
§ 152.022. TAX ON MOTOR VEHICLE PURCHASED OUTSIDE THIS
STATE. (a) A use tax is imposed on a motor vehicle purchased at
retail sale outside this state and used on the public highways of
this state by a Texas resident or other person who is domiciled or
doing business in this state.
(b) The tax rate is 6-1/4 percent of the total
consideration.
Acts 1981, 67th Leg., p. 1588, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1, § 7,
eff. Aug. 1, 1984; Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 6,
§ 2; Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 16.03, eff.
Sept. 1, 1991.
§ 152.023. TAX ON MOTOR VEHICLE BROUGHT INTO STATE BY NEW
TEXAS RESIDENT. (a) A use tax is imposed on a new resident of this
state who brings into this state a motor vehicle:
(1) that has been registered previously in the new
resident's name in any other state or foreign country; or
(2) that the person leased in another state or foreign
country.
(b) The tax is $90 for each vehicle.
(c) The tax imposed by this section is in lieu of the tax
imposed by Section 152.022.
Acts 1981, 67th Leg., p. 1589, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1999, 76th Leg., ch. 1414, § 1, eff. Sept. 1,
1999.
§ 152.024. TAX ON AN EVEN EXCHANGE OF MOTOR
VEHICLES. (a) A tax is imposed on each party to a transaction
involving the even exchange of two motor vehicles.
(b) The tax on each party is $5.
(c) No transfer of title in an even exchange shall be
accomplished until the taxes have been paid.
Acts 1981, 67th Leg., p. 1589, ch. 389, § 1, eff. Jan. 1, 1982.
§ 152.025. TAX ON GIFT OF MOTOR VEHICLE. (a) A tax is
imposed on the recipient of a gift of a motor vehicle.
(b) The tax is $10.
Acts 1981, 67th Leg., p. 1589, ch. 389, § 1, eff. Jan. 1, 1982.
§ 152.026. TAX ON GROSS RENTAL RECEIPTS. (a) A tax is
imposed on the gross rental receipts from the rental of a rented
motor vehicle.
(b) The tax rate is 10 percent of the gross rental receipts
from the rental of a rented motor vehicle for 30 days or less and
6-1/4 percent of the gross rental receipts from the rental of a
rented motor vehicle for longer than 30 days.
(c) Except for a destroyed motor vehicle or an unrecovered
stolen motor vehicle, the total amount of gross rental receipts tax
paid by the owner, as defined by Section 152.001(9)(A) of this code,
on a motor vehicle registered under Section 152.061 of this code may
not be less than an amount equal to the tax that would be imposed by
Section 152.021 or 152.022 of this code but for Subsection (d) of
this section.
(d) The taxes imposed by Sections 152.021 and 152.022 of
this code are not due on a motor vehicle as long as it is registered
as a rental vehicle under Section 152.061 of this code.
Acts 1981, 67th Leg., p. 1589, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1, § 8,
eff. Aug. 1, 1984; Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 6,
§ 3; Acts 1991, 72nd Leg., ch. 16, § 17.04, eff. Aug. 26,
1991; Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 16.04, eff. Sept.
1, 1991.
§ 152.027. TAX ON METAL DEALER PLATES. (a) A use tax
is imposed on each person to whom is issued a metal dealer's plate
authorized by Chapter 503, Transportation Code.
(b) The tax is $25 for each plate issued.
(c) The tax imposed by this section is in lieu of any other
tax imposed by this chapter.
Acts 1981, 67th Leg., p. 1589, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1, § 9,
eff. Aug. 1, 1984; Acts 1997, 75th Leg., ch. 165, § 30.252, eff.
Sept. 1, 1997.
§ 152.028. USE TAX ON MOTOR VEHICLE BROUGHT BACK INTO
STATE. (a) A use tax is imposed on the operator of a motor vehicle
that was purchased tax-free under Section 152.092 of this code and
that is brought back into this state for use on the public highways
of this state. The tax is imposed at the time the motor vehicle is
brought back into this state.
(b) The tax rate is 6-1/4 percent of the total
consideration.
Added by Acts 1983, 68th Leg., p. 722, ch. 167, § 2, eff. May 20,
1983. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1,
§ 10, eff. Aug. 1, 1984; Acts 1987, 70th Leg., 2nd C.S., ch. 5,
art. 6, § 4; Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 16.05,
eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1040, § 27, eff.
Oct. 1, 1997.
SUBCHAPTER C. COLLECTION OF TAXES
§ 152.041. GENERAL COLLECTION PROCEDURE. (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 unless another person is
required by this chapter to collect the taxes.
(b) Except as provided by Section 152.069, the tax
assessor-collector may not accept an application unless the tax and
any penalty is paid.
(c) Except as provided by Subsection (f) and Section
152.047, the tax imposed by Section 152.021 is due on the 20th
working day after the date the motor vehicle is delivered to the
purchaser.
(d) Except as provided by Subsection (f), the tax imposed by
Section 152.022 is due on the 20th working day after the date the
motor vehicle is brought into this state.
(e) If a motor vehicle title applicant has paid the tax to
the seller who is required by this chapter to collect the tax and
the seller has failed to remit the tax to the county tax
assessor-collector, the tax assessor-collector may accept
application for title to the motor vehicle without the payment of
additional tax by the applicant. Before title to the motor vehicle
may be issued under these circumstances, the motor vehicle title
applicant must present satisfactory documentation to the tax
assessor-collector that the tax was paid. The county tax
assessor-collector shall notify the comptroller in writing of the
seller's failure to remit the tax. The notice must:
(1) be made before the 31st day after the date the
application for title is accepted;
(2) contain the name and address of the seller; and
(3) include any documentation of the payment of the
tax provided to the county tax assessor-collector by the motor
vehicle title applicant.
(f) The tax imposed by Section 152.021 or 152.022 on a motor
vehicle designed for commercial use is due on the 20th working day
after the date the motor vehicle is equipped with a body or other
equipment that enables the motor vehicle to be eligible to be
registered under the Transportation Code.
Acts 1981, 67th Leg., p. 1589, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 455, ch. 93, § 11, eff. Sept.
1, 1983; Acts 1993, 73rd Leg., ch. 29, § 3, eff. Oct. 1, 1993;
Acts 1999, 76th Leg., ch. 1467, § 2.31, eff. Oct. 1, 1999; Acts
2001, 77th Leg., ch. 1263, § 27, eff. Sept. 1, 2001.
§ 152.0411. COLLECTION BY SELLERS. (a) Except as
provided by this section, a seller who makes a sale subject to the
sales tax imposed by Section 152.021 shall add the amount of the tax
to the sales price, and when the amount of the tax is added:
(1) it is a debt of the purchaser to the seller until
paid; and
(2) if unpaid, it is recoverable at law in the same
manner as the original sales price.
(b) The seller shall collect the tax from the purchaser and
remit it to the tax assessor-collector in the time and manner
provided by law.
(c) This section applies only to the sale of a vehicle that
is to be titled and registered in Texas. If a purchaser intends to
register a vehicle outside Texas, the purchaser shall comply with
the terms of Section 152.092.
(d) This section does not apply to a seller-financed sale.
(e) This section applies only to a sale in which the seller
is a motor vehicle dealer who holds a dealer license issued under
Chapter 503, Transportation Code, or Chapter 2301, Occupations
Code.
(f) This section does not apply to the sale of a motor
vehicle with a gross weight in excess of 11,000 pounds. The seller
of a motor vehicle with a gross weight in excess of 11,000 pounds
shall maintain records of the sale in the manner and form, and
containing the information, required by the comptroller.
Added by Acts 1995, 74th Leg., ch. 1015, § 3, eff. Jan. 1, 1996.
Amended by Acts 1997, 75th Leg., ch. 165, § 30.253, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1040, § 28, eff. Oct. 1, 1997;
Acts 2003, 78th Leg., ch. 1276, § 14A.817, eff. Sept. 1, 2003.
§ 152.042. COLLECTION OF TAX ON METAL DEALER PLATES. A
person required to pay the tax imposed by Section 152.027 shall pay
the tax to the Texas Department of Transportation, and the
department may not issue the metal dealer's plates until the tax is
paid.
Acts 1981, 67th Leg., p. 1589, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1995, 74th Leg., ch. 165, § 22(70), eff. Sept. 1,
1995.
§ 152.043. COLLECTION OF TAX ON MOTOR VEHICLES OPERATED
BY NONRESIDENTS. A person doing business in this state who
registers a motor vehicle under Section 502.054, Transportation
Code, shall pay the tax imposed by Section 152.022 of this code to
the comptroller on or before the day the motor vehicle is brought
into Texas.
Acts 1981, 67th Leg., p. 1590, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1997, 75th Leg., ch. 165, § 30.254, eff. Sept. 1,
1997.
§ 152.044. PAYMENT BY SELLER. (a) If the comptroller
on an audit of the records of a seller finds that the amount of tax
due was incorrectly reported on a joint statement and that the
amount of tax paid was less than the amount due, the seller and
purchaser are jointly and severally liable for the amount of the tax
determined to be due.
(b) The comptroller shall ascertain compliance with the
terms of this section. If the comptroller on an audit of the
records of a motor vehicle dealer finds that the documents
necessary to title and register a motor vehicle in the name of the
purchaser of the motor vehicle have not been executed and delivered
to the tax assessor-collector, together with tax due, if any, the
motor vehicle dealer is liable for the amount of the tax due, plus
penalty and interest, if any.
Acts 1981, 67th Leg., p. 1590, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1993, 73rd Leg., ch. 587, § 19, eff. Oct. 1,
1993; Acts 1995, 74th Leg., ch. 1015, § 4, eff. Jan. 1, 1996.
§ 152.045. COLLECTION OF TAX ON GROSS RENTAL
RECEIPTS. (a) Except as inconsistent with this chapter and rules
adopted under this chapter, an owner of a motor vehicle subject to
the tax on gross rental receipts shall report and pay the tax to the
comptroller in the same manner as the Limited Sales, Excise and Use
Tax is reported and paid by retailers under Chapter 151 of this
code.
(b) The owner shall add the tax to the rental charge, and
when added, the tax is:
(1) a part of the rental charge;
(2) a debt owed to the motor vehicle owner by the
person renting the vehicle; and
(3) recoverable at law in the same manner as the rental
charge.
(c) The comptroller may proceed against a person renting a
motor vehicle for any unpaid gross rental receipts tax.
Acts 1981, 67th Leg., p. 1590, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 5, § 16.06, eff.
Sept. 1, 1991.
§ 152.046. CHANGE IN TAX STATUS OF MOTOR
VEHICLE. (a) If the owner, as defined by Section 152.001(9)(A) of
this code, of a motor vehicle registered as a rental vehicle ceases
to use the vehicle for rental, the owner shall report and remit on
the next report required to be filed with the comptroller by Section
152.045(a) of this code any unpaid portion of gross rental receipts
tax imposed by Section 152.026 of this code.
(b) An owner of a motor vehicle on which the motor vehicle
sales or use tax has been paid who subsequently uses the vehicle for
rental shall collect the gross rental receipts tax imposed by this
chapter from the person renting the vehicle. The owner may credit
an amount equal to the motor vehicle sales or use tax paid by the
owner to the comptroller against the amount of gross rental
receipts due. This credit is not transferable and cannot be applied
against tax due and payable from the rental of another vehicle
belonging to the same owner.
(c) For the purpose of determining the amount of minimum tax
due under Section 152.026(c) of this code only, an owner of a motor
vehicle on which the tax on gross rental receipts is imposed may
credit against the amount of gross rental receipts due an amount
equal to the tax on gross rental receipts the owner has paid to any
other state. This credit is not transferable and cannot be applied
against tax due and payable from the rental of another vehicle
belonging to the same owner.
Acts 1981, 67th Leg., p. 1590, ch. 389, § 1, eff. Jan. 1, 1982.
§ 152.047. COLLECTION OF TAX ON SELLER-FINANCED
SALE. (a) Except as inconsistent with this chapter and rules
adopted under this chapter, the seller of a motor vehicle shall
report and pay the tax imposed on a seller-financed sale to the
comptroller on the seller's receipts from seller-financed sales in
the same manner as the sales tax is reported and paid by a retailer
under Sections 151.401, 151.402, 151.405, 151.406, 151.409,
151.423, 151.424, and 151.425.
(b) If a note, mortgage, account receivable, or other
document evidencing the purchaser's indebtedness to the seller of a
vehicle sold subject to a seller-financed sale does not bear
interest, it will be conclusively presumed that the total
consideration for the sale is principal.
(c) If a note, mortgage, account receivable, or other
document evidencing the purchaser's indebtedness to the seller of a
vehicle sold subject to a seller-financed sale bears interest, it
is conclusively presumed that interest accrues and is paid by the
purchaser on a straight line basis.
(d) The seller shall add the tax imposed on a
seller-financed sale to the sales price of the vehicle sold, and
when added, the tax is:
(1) a part of the sales price;
(2) a debt owed to the seller by the purchaser; and
(3) recoverable at law in the same manner as the sales
price.
(e) Regardless of the accounting method used by the seller,
the seller shall collect and pay the tax imposed on a
seller-financed sale to the comptroller as the seller receives the
proceeds of the sale.
(f) If the seller fails to apply, not later than the 60th day
after the date the motor vehicle is delivered to the purchaser, for
registration and a Texas certificate of title for a motor vehicle
sold in a seller-financed sale in accordance with Section 152.069,
the seller is liable for all unpaid tax on the total consideration,
and the tax is due and must be sent to the comptroller with the first
report after the expiration of the prescribed period.
(g) If a seller factors, assigns, or otherwise transfers the
right to receive payments, all unpaid tax is due on the total
consideration not reported at the time the agreement is factored,
assigned, or otherwise transferred. The seller shall report and
submit the tax in the report period in which the right to receive
the payment is factored, assigned, or otherwise transferred. The
seller may not take a deduction in the amount of tax due if a
transfer at a discount is made.
(h) The comptroller may proceed against the purchaser in a
seller-financed sale for the amount of any tax not paid by the
purchaser.
(i) The comptroller shall adopt rules and promulgate forms
necessary to implement this section.
Added by Acts 1993, 73rd Leg., ch. 29, § 4, eff. Oct. 1, 1993.
Amended by Acts 2001, 77th Leg., ch. 1263, § 28, eff. Sept. 1,
2001.
§ 152.048. GROSS RECEIPTS PRESUMED SUBJECT TO
TAX. (a) All gross receipts of a seller required to obtain a
permit under Section 152.065 are presumed to be subject to the
provisions of this code.
(b) The presumption provided by Subsection (a) does not
apply to receipts:
(1) on which a tax imposed under other law is computed
and paid to the comptroller; or
(2) for which a properly completed resale or exemption
certificate is accepted by the seller.
(c) The seller may overcome the presumption under
Subsection (a) by credible evidence that the receipts are not from a
seller-financed sale or that the tax on those receipts has been sent
to the comptroller.
Added by Acts 1993, 73rd Leg., ch. 29, § 4, eff. Oct. 1, 1993.
SUBCHAPTER D. TAX ENFORCEMENT PROCEDURES
§ 152.061. REGISTRATION OF MOTOR VEHICLE PURCHASED FOR
RENTAL. (a) An owner of a motor vehicle purchased for rental may
furnish the county tax assessor-collector a rental certificate in
lieu of the motor vehicle sales or use tax imposed by Sections
152.021 and 152.022 of this code. The county tax
assessor-collector shall accept the motor vehicle for registration
and issue a receipt for the license and title application.
(b) A rental certificate may be furnished by:
(1) a dealer licensed under Chapter 503,
Transportation Code; or
(2) the owner if the vehicle is for use in a rental
business that rents at least five different motor vehicles within
any 12-month period.
(c) The rental certificate shall be in a form designated by
the comptroller and must contain:
(1) the name, address, and signature of the owner;
(2) the owner's or dealer's license number or a
statement by the owner that the rental business of the owner meets
the activity requirements of Subsection (b) of this section;
(3) the motor vehicle identification number; and
(4) the amount of total consideration for the motor
vehicle and the amount of tax that would be due if the rental
certificate had not been furnished.
Acts 1981, 67th Leg., p. 1591, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1997, 75th Leg., ch. 165, § 30.255, eff. Sept. 1,
1997.
§ 152.062. REQUIRED STATEMENTS. (a) The persons
obligated by this chapter to pay taxes on the transaction shall file
a joint statement with the tax assessor-collector of the county in
which the application for registration and for a Texas certificate
of title is made.
(b) The statement must be in the following form:
(1) if a motor vehicle is sold, the seller and
purchaser shall make a joint statement of the then value in dollars
of the total consideration for the vehicle; or
(2) if the ownership of a motor vehicle is transferred
as the result of a gift or even exchange, the principal parties
shall make a joint statement describing the nature of the
transaction.
(c) If a party to a sale, even exchange, or gift is a
corporation, the president, vice-president, secretary, manager, or
other authorized officer of the corporation shall make the
statement for the corporation.
(d) Repealed by Acts 1999, 76th Leg., ch. 1467, §
4.01(3), eff. June 19, 1999.
(e) The tax assessor-collector shall examine each joint
statement for the purpose of determining the truth and accuracy of
the information it contains. If the tax assessor-collector or the
comptroller has reason to question the truth of the information in a
statement, or if any material fact fails to meet the guidelines
promulgated by the comptroller, the tax assessor-collector or the
comptroller shall require any party to the statement to furnish
substantiation of information contained in the statement.
(f) The tax assessor-collector shall immediately report to
the nearest peace officer and to the comptroller, the name and
address of each party whose name is signed on a joint statement
found to be false in any material fact.
(g) The tax assessor-collector shall keep a copy of each
statement and any substantiating materials required to be furnished
in connection therewith until it is called for by the comptroller
for auditing or by any court of competent jurisdiction.
Acts 1981, 67th Leg., p. 1591, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 1, § 45,
eff. Aug. 1, 1984; Acts 1993, 73rd Leg., ch. 587, § 20, eff. Oct.
1, 1993; Acts 1999, 76th Leg., ch. 1467, § 4.01, eff. June 19,
1999.
§ 152.063. RECORDS. (a) The seller of a motor vehicle
shall keep at his principal office for at least four years from the
date of the sale a complete record of each retail sale of a motor
vehicle. The record must include a copy of the invoice of each
vehicle sold. The invoice copy must show the full price of the
motor vehicle and the itemized price of all its accessories. All
sales and supporting records of a seller are open to inspection and
audit by the comptroller.
(b) The owner of a motor vehicle used for rental purposes
shall keep for four years after purchase of a motor vehicle records
and supporting documents containing the following information on
the amount of:
(1) total consideration for the motor vehicle;
(2) motor vehicle sales or use tax paid on the motor
vehicle;
(3) gross rental receipts received from the rental of
the motor vehicle; and
(4) gross rental receipts tax paid to the comptroller
on each motor vehicle used for rental purposes by the owner.
(c) No mileage records are required.
(d) A seller's business records must show the total receipts
from all sources of income and expense, including transactions
involving motor vehicles.
(e) For a retail sale for which the seller receives full
payment at the time of sale, the seller shall keep, at the seller's
principal office for at least four years from the date of the sale,
documentation of complete payment in the form of:
(1) a copy of the payment instrument or a receipt for
cash received; and
(2) a copy of the receipt for title application,
registration, and motor vehicle tax issued by the county tax
assessor-collector.
(f) For a sale for resale, the seller shall keep, at the
seller's principal office for at least four years from the date of
the sale, the purchaser's written statement of resale on a form
prescribed by the comptroller.
(g) Any person, other than the seller's employee, acting for
the seller of a motor vehicle has the same record-keeping
responsibilities as the seller.
Acts 1981, 67th Leg., p. 1591, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1993, 73rd Leg., ch. 587, § 21, eff. Oct. 1,
1993; Acts 1997, 75th Leg., ch. 1040, § 29, eff. Oct. 1, 1997.
§ 152.0635. RECORDS OF CERTAIN SELLERS. (a) In
addition to the requirements prescribed by Section 152.063, a
seller engaged in seller-financed sales who has a permit under
Section 152.065 shall keep the records required by this section.
(b) For seller-financed sales, the seller shall keep at the
seller's principal office for at least four years from the date on
which the seller receives the final payment for the motor vehicle:
(1) the lienholder's copy of the receipt for title
application, registration, and motor vehicle tax issued by a county
tax assessor-collector; and
(2) a ledger or other document containing a complete
record of the payment history for that motor vehicle, including:
(A) the name and address of the purchaser;
(B) the total consideration;
(C) the amount of the down payment received at
the time the motor vehicle is sold;
(D) the date and amount of each subsequent
payment;
(E) the date of sale; and
(F) the date of any repossession.
(c) For retail sales paid in full at the time of sale, the
seller shall keep at the seller's principal office for at least four
years from the date of the sale documentation of complete payment in
the form of:
(1) a copy of the payment instrument or a receipt for
cash received; and
(2) a copy of the receipt for title application,
registration, and motor vehicle tax issued by the county tax
assessor-collector.
(d) For sales for resale, the seller shall keep at the
seller's principal office for at least four years from the date of
the sale the purchaser's written statement of resale on a form
prescribed by the comptroller.
Added by Acts 1993, 73rd Leg., ch. 29, § 5, eff. Oct. 1, 1993.
Amended by Acts 1997, 75th Leg., ch. 1040, § 30, eff. Oct. 1,
1997.
§ 152.064. TAX RECEIPTS. (a) The comptroller shall
prescribe the form of a tax receipt to be issued to a person paying a
tax imposed by this chapter.
(b) The tax assessor-collector of each county shall:
(1) issue a receipt to the person paying a tax imposed
by this chapter; and
(2) send a copy of the receipt to the comptroller
according to the instructions of the comptroller.
Acts 1981, 67th Leg., p. 1592, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 1361, ch. 280, § 2, eff.
Sept. 1, 1983; Acts 1997, 75th Leg., ch. 357, § 1, eff. Jan. 1,
1998.
§ 152.065. REQUIRED PERMITS. A motor vehicle owner
required to collect, report, and pay a tax on gross rental receipts
imposed by this chapter and a seller required to collect, report,
and pay a tax on a seller-financed sale shall register as a retailer
with the comptroller in the same manner as is required of a retailer
under Subchapter F, Chapter 151.
Acts 1981, 67th Leg., p. 1592, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1993, 73rd Leg., ch. 29, § 6, eff. Oct. 1, 1993.
§ 152.066. DEFICIENCY DETERMINATION; PENALTY AND
INTEREST. (a) The comptroller shall give written notice to the
seller of a motor vehicle of a deficiency determination made under
Section 152.044 of this code.
(b) A person who fails to pay a tax imposed by this chapter
when due forfeits five percent of the amount due as a penalty, and
if the person fails to pay the tax within 30 days after the day on
which the tax is due, the person forfeits an additional five
percent.
(c) The minimum penalty imposed by this section is $1.
(d) Except in the case of the gross receipts tax, interest
begins to accrue on delinquent taxes 60 days after the day on which
the joint statement was executed. Delinquent taxes on gross rental
receipts draw interest beginning 60 days from the due date.
Acts 1981, 67th Leg., p. 1592, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 455, ch. 93, § 12, eff. Sept.
1, 1983; Acts 1997, 75th Leg., ch. 1040, § 31, eff. Oct. 1, 1997.
§ 152.067. PETITION FOR REDETERMINATION OF A
DEFICIENCY. (a) The comptroller shall:
(1) promulgate rules under which the seller may
petition for a redetermination of deficiency; and
(2) grant an oral hearing to any seller who requests a
hearing.
(b) The comptroller may increase or decrease the
determination of deficiency before it becomes final, but the amount
may be increased only if the comptroller asserts a claim for the
increase at or before the oral hearing.
(c) If the comptroller asserts a claim for an increase in
the determination, the seller is entitled to a 30-day continuance
of the hearing in order to obtain other evidence relating to the
items on which the increase is based.
Acts 1981, 67th Leg., p. 1592, ch. 389, § 1, eff. Jan. 1, 1982.
§ 152.068. REVOCATION OF MOTOR VEHICLE RETAIL SELLER'S
PERMIT. (a) The comptroller may revoke or suspend any one or more
of the permits held by a person if that person fails to comply with a
provision of this chapter or with a rule of the comptroller relating
to a tax imposed by this chapter.
(b) Before revoking or suspending the permit, the
comptroller must provide the permit holder with a hearing. The
permit holder must be given at least 20 days' notice specifying the
time and place of hearing and requiring that the permit holder show
cause why the permit or permits should not be revoked or suspended.
(c) The comptroller shall give the person notice of the
suspension or revocation of any permit.
(d) Notice required by this section must be written and may
be served either personally or by mail.
(e) The comptroller may not issue a new permit after the
revocation of a permit unless satisfied that the former permit
holder will comply with the provisions of this chapter and the rules
of the comptroller. The comptroller may prescribe the terms under
which a suspended permit may be reissued.
(f) The permit holder or person whose permit is revoked may
appeal the comptroller's action in the same manner as a final
deficiency determination may be appealed.
Acts 1981, 67th Leg., p. 1593, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1993, 73rd Leg., ch. 29, § 7, eff. Oct. 1, 1993.
§ 152.069. REGISTRATION OF MOTOR VEHICLE USING
SELLER-FINANCING. (a) The seller of a motor vehicle sold in a
seller-financed sale shall apply for the registration of, and a
Texas certificate of title for, the motor vehicle in the name of the
purchaser to the appropriate county tax assessor-collector.
(b) The seller shall provide to the county tax
assessor-collector a joint statement as prescribed by Section
152.062 in lieu of the motor vehicle sales tax imposed by Section
152.021. The statement shall include the seller's permit
identification number issued by the comptroller.
Added by Acts 1993, 73rd Leg., ch. 29, § 8, eff. Oct. 1, 1993.
Amended by Acts 1997, 75th Leg., ch. 1040, § 32, eff. Oct. 1,
1997.
SUBCHAPTER E. EXEMPTIONS
§ 152.081. DRIVER TRAINING MOTOR VEHICLES. The taxes
imposed by this chapter do not apply to the sale or use of a motor
vehicle that is:
(1) owned by a motor vehicle dealer as defined by
Section 503.001, Transportation Code;
(2) purchased in this state; and
(3) loaned free of charge by the dealer to a public
school for use in an approved standard driver training course.
Acts 1981, 67th Leg., p. 1593, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1997, 75th Leg., ch. 165, § 30.256, eff. Sept. 1,
1997.
§ 152.082. SALE OF MOTOR VEHICLE TO OR USE OF MOTOR
VEHICLE BY PUBLIC AGENCY. The taxes imposed by this chapter do not
apply to the sale of a motor vehicle to or use of a motor vehicle by
a public agency if the motor vehicle is operated with an exempt
license plate issued under Section 502.201 or 502.206,
Transportation Code.
Acts 1981, 67th Leg., p. 1593, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1997, 75th Leg., ch. 165, § 30.257, eff. Sept. 1,
1997.
§ 152.083. LEASE OF MOTOR VEHICLE TO PUBLIC
AGENCY. (a) The taxes imposed by this chapter do not apply to the
purchase of a motor vehicle that is to be leased to a public agency.
(b) This exemption applies only if the person purchasing the
motor vehicle to be leased presents the tax assessor-collector a
form prescribed and provided by the comptroller and showing:
(1) the identification of the motor vehicle;
(2) the name and address of the lessor and the lessee;
and
(3) verification by an officer of the public agency to
which the motor vehicle will be leased that the agency will operate
the vehicle with an exempt license plate issued under Section
502.201 or 502.206, Transportation Code.
(c) If a motor vehicle for which the tax has not been paid
ceases to be leased to a public agency, the owner shall notify the
comptroller on a form provided by the comptroller and shall pay the
sales or use tax on the motor vehicle based on the owner's book
value of the motor vehicle. The tax is imposed at the same rate that
is provided by Section 152.021(b) of this code.
Acts 1981, 67th Leg., p. 1593, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1997, 75th Leg., ch. 165, § 30.258, eff. Sept. 1,
1997.
§ 152.084. RENTAL OF MOTOR VEHICLE TO PUBLIC
AGENCY. The taxes imposed by this chapter do not apply to the
rental of a motor vehicle to a public agency. The tax which would
have been remitted on gross rental receipts without this exemption
shall be deemed to have been remitted for the purpose of calculating
the minimum gross rental receipts tax imposed by Section 152.026 of
this code.
Acts 1981, 67th Leg., p. 1594, ch. 389, § 1, eff. Jan. 1, 1982.
§ 152.085. RENTAL OF MOTOR VEHICLE FOR PURPOSES OF
RE-RENTAL. (a) The taxes imposed by this chapter on the gross
rental receipts from the rental of a motor vehicle do not apply to
the rental of a motor vehicle for the purpose of re-rental.
(b) The minimum gross rental receipts tax imposed by Section
152.026 of this code remains the obligation of the owner as defined
by Section 152.001(9)(A) of this code. The owner may credit all
gross rental receipts taxes paid to the comptroller on the
re-rental of a motor vehicle registered under Section 152.061 of
this code for the purpose of calculating the amount of minimum gross
rental receipts tax due.
(c) A person authorized by Section 152.061 of this code to
register motor vehicles for rental may issue an exemption
certificate to the owner of the motor vehicle. An owner who takes
the certificate in good faith is relieved of the burden of proving
that the motor vehicle was rented for purposes of re-rental.
Acts 1981, 67th Leg., p. 1594, ch. 389, § 1, eff. Jan. 1, 1982.
§ 152.086. MOTOR VEHICLES DRIVEN BY HANDICAPPED
PERSONS. (a) The taxes imposed by this chapter do not apply to
the sale or use of a motor vehicle that:
(1) has been or will be modified before the second
anniversary of the date of purchase for operation by, or for the
transportation of, an orthopedically handicapped person; and
(2) is driven by or used for the transportation of an
orthopedically handicapped person.
(b) The comptroller shall promulgate rules to ensure that
motor vehicles exempted from taxation by this section are used
primarily by orthopedically handicapped persons. The comptroller
may require any individual seeking exemption under this section to
present information establishing qualification for the exemption.
(c) If the comptroller finds that the motor vehicle is not
used primarily for the purposes specified in this Act or that the
exemption should not have been granted, the comptroller shall
assess the tax in an amount that would have been due had the
exemption not been given under this section.
Acts 1981, 67th Leg., p. 1594, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1981, 67th Leg., p. 2758, ch. 752, § 5(b), eff.
Jan. 1, 1982; Acts 2003, 78th Leg., ch. 209, § 25, eff. Oct. 1,
2003.
§ 152.087. FIRE TRUCKS AND EMERGENCY MEDICAL SERVICES
VEHICLES. The taxes imposed by this chapter do not apply to the
purchase, rental, or use of a fire truck, emergency medical
services vehicle as defined by Section 773.003, Health and Safety
Code, or other motor vehicle used exclusively for fire-fighting
purposes or for emergency medical services when purchased by:
(1) a volunteer fire department;
(2) a nonprofit emergency medical service provider
that receives a federal income tax exemption under Section 501(a),
Internal Revenue Code of 1986, as an organization described by
Section 501(c)(3), Internal Revenue Code of 1986; or
(3) an emergency medical service provider to which
Section 502.204, Transportation Code, applies.
Acts 1981, 67th Leg., p. 1594, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1989, 71st Leg., ch. 606, § 3, eff. Jan. 1, 1990;
Acts 1993, 73rd Leg., ch. 169, § 2, eff. Aug. 30, 1993; Acts
1997, 75th Leg., ch. 165, § 30.259, eff. Sept. 1, 1997.
§ 152.088. MOTOR VEHICLES USED FOR RELIGIOUS
PURPOSES. The taxes imposed by this chapter do not apply to the
sale or use of or the receipts from the rental of a motor vehicle
that is used for religious purposes.
Acts 1981, 67th Leg., p. 1595, ch. 389, § 1, eff. Jan. 1, 1982.
§ 152.089. EXEMPT VEHICLES. (a) The taxes imposed by
this chapter do not apply to interstate motor vehicles, trailers,
and semitrailers; provided that if a motor vehicle, trailer, or
semitrailer ceases to be used as an interstate motor vehicle,
trailer, or semitrailer within one year of either the date the
vehicle was purchased in Texas or the date the vehicle was first
brought into Texas, the taxes imposed by this chapter will apply at
that time.
(b) If a motor vehicle is no longer leased for interstate
use, the owner shall notify the comptroller on a form provided by
the comptroller. The owner shall pay a tax at the rate prescribed
by Section 152.021(b) on the motor vehicle based on the owner's book
value of the motor vehicle.
(c) In this section, "interstate motor vehicle" means a
motor vehicle that is operated in this state and another state or
country and for which registration fees could be apportioned if the
motor vehicle were registered in a state or province of a country
that is a member of the International Registration Plan. The term
includes a bus used in transportation of chartered parties if the
bus meets all the standards required of other motor vehicles for
apportioned registration fees. The term does not include a vehicle
leased for less than 181 days or a vehicle that has Texas license
plates and does not operate under the International Registration
Plan.
Added by Acts 1981, 67th Leg., p. 2754, ch. 752, § 1(b), eff.
Jan. 1, 1982. Amended by Acts 1993, 73rd Leg., ch. 587, § 22,
eff. Oct. 1, 1993; Acts 1995, 74th Leg., ch. 705, § 9, eff. Sept.
1, 1997.
§ 152.091. FARM OR TIMBER USE. (a) The taxes imposed
by this chapter do not apply to the sale or use of a:
(1) farm machine, trailer, or semitrailer for use
primarily for farming and ranching, including the rearing of
poultry, and use in feedlots; or
(2) machine, trailer, or semitrailer for use primarily
for timber operations.
(b)(1) The taxes imposed by this chapter do not apply to the
purchase of a:
(A) farm machine, trailer, or semitrailer that is
to be leased for use primarily for farming and ranching, including
the rearing of poultry, and use in feedlots; or
(B) machine, trailer, or semitrailer that is to
be leased for use primarily for timber operations.
(2) The exemption provided by this subsection applies
only if the person purchasing the machine, trailer, or semitrailer
to be leased presents the tax assessor-collector a form prescribed
and provided by the comptroller showing:
(A) the identification of the motor vehicle;
(B) the name and address of the lessor and the
lessee; and
(C) verification by the lessee that the machine,
trailer, or semitrailer will be used primarily for:
(i) farming and ranching, including the
rearing of poultry, and use in feedlots; or
(ii) timber operations.
(3) If a motor vehicle for which the tax has not been
paid ceases to be leased for use primarily for farming and ranching,
including the rearing of poultry, and use in feedlots or timber
operations, the owner shall notify the comptroller on a form
provided by the comptroller and shall pay the sales or use tax on
the motor vehicle based on the owner's book value of the motor
vehicle. The tax is imposed at the same percentage rate that is
provided by Section 152.021(b).
(c) The taxes imposed by this chapter do not apply to the
rental of a farm machine, a trailer, or a semitrailer for use
primarily for farming and ranching, including the rearing of
poultry, and use in feedlots, or a machine, a trailer, or a
semitrailer for use primarily for timber operations. The tax that
would have been remitted on gross rental receipts without this
exemption shall be deemed to have been remitted for the purpose of
calculating the minimum gross rental receipts imposed by Section
152.026. The exemption provided by this subsection applies only if
the owner of the motor vehicle obtains in good faith an exemption
certificate from the person to whom the vehicle is being rented.
(d) For purposes of this section, a machine is used
"primarily for timber operations" if the machine is a
self-propelled motor vehicle that is specially adapted to perform a
specialized function in the production of timber, including land
preparation, planting, maintenance, and gathering of trees
commonly grown for commercial timber. The term does not include a
self- propelled motor vehicle used to transport timber or timber
products.
Added by Acts 1983, 68th Leg., p. 3211, ch. 553, § 3, eff. Sept.
1, 1983. Amended by Acts 1999, 76th Leg., ch. 631, § 16, eff.
Oct. 1, 2001; Acts 2001, 77th Leg., ch. 1263, § 29, eff. Oct. 1,
2001.
§ 152.092. MOTOR VEHICLES TRANSPORTED OUT OF
STATE. (a) The taxes imposed by this chapter do not apply to the
retail sale of a motor vehicle that is transported out of state,
prior to any use in this state other than the transportation of the
vehicle out of state, for use exclusively outside this state.
(b) To qualify for the exemption provided by this section
the purchaser of a motor vehicle must sign at the time of the
purchase an exemption certificate that:
(1) is on a form designated by the comptroller;
(2) contains all information the comptroller
considers reasonable;
(3) is signed by the purchaser; and
(4) provides that the purchaser, by signing the
certificate, authorizes the comptroller to provide a copy of the
certificate to the state of intended use and registration.
Added by Acts 1983, 68th Leg., p. 722, ch. 167, § 1, eff. May 20,
1983. Renumbered from § 152.090 by Acts 1987, 70th Leg., ch.
167, § 5.01(a)(53). Amended by Acts 1993, 73rd Leg., ch. 587,
§ 23, eff. Oct. 1, 1993.
§ 152.093. MOTOR VEHICLES SOLD TO CERTAIN LICENSED
CHILD-CARE FACILITIES. (a) The taxes imposed by this chapter do
not apply to a motor vehicle:
(1) purchased, used, or rented by a qualified
residential child-care facility; and
(2) intended for use primarily in transporting the
children residing in the facility under a state license.
(b) In this section, "qualified residential child-care
facility" means a child-care facility:
(1) licensed under Chapter 42, Human Resources Code,
to provide residential care 24 hours a day to both:
(A) children who do not require specialized
services or treatment; and
(B) children who are emotionally disturbed; and
(2) in which children of both classifications listed
in Subdivision (1) are permitted by the license to live together in
a single residential group.
Added by Acts 1989, 71st Leg., ch. 1055, § 1, eff. Sept. 1, 1989.
SUBCHAPTER F. PENALTIES
§ 152.101. PENALTY FOR SIGNING FALSE STATEMENT OR
CERTIFICATE. (a) A person commits an offense if the person signs
a joint statement required by Section 152.062 or a certificate
required by Section 152.092(b) and knows that it is false in any
material fact.
(b) An offense under this section is a felony of the third
degree.
Acts 1981, 67th Leg., p. 1595, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1993, 73rd Leg., ch. 587, § 24, eff. Oct. 1,
1993; Acts 2001, 77th Leg., ch. 442, § 17, eff. Sept. 1, 2001.
§ 152.102. OPERATION WITHOUT PAYMENT OF TAX. (a) A
person commits an offense if the person knowingly operates a motor
vehicle on a highway of this state without paying the tax imposed by
this chapter on the vehicle.
(b) An offense under this section is a Class C misdemeanor.
Acts 1981, 67th Leg., p. 1595, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 2001, 77th Leg., ch. 442, § 18, eff. Sept. 1,
2001.
§ 152.103. FAILURE TO KEEP RECORDS.
Text of subsec. (a) as amended by Acts 1993, 73rd Leg., ch. 29, §
10
(a) A seller commits an offense if he fails to make and
retain complete records for the period of four years as provided by
this chapter.
Text of subsec. (a) as amended by Acts 1993, 73rd Leg., ch. 587,
§ 25
(a) A seller commits an offense if the seller fails to make
and retain complete records for the period of four years as provided
by Subchapter D.
(b) An offense under this section is a Class C misdemeanor.
Acts 1981, 67th Leg., p. 1595, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1993, 73rd Leg., ch. 29, § 10, eff. Oct. 1, 1993;
Acts 1993, 73rd Leg., ch. 587, § 25, eff. Oct. 1, 1993; Acts
2001, 77th Leg., ch. 442, § 19, eff. Sept. 1, 2001.
§ 152.104. FAILURE TO REMIT TAX COLLECTED. (a) A
person who is a dealer, as defined by Section 503.001,
Transportation Code, or who is acting in the capacity of a dealer,
commits an offense if the person intentionally or knowingly fails
to pay to the tax assessor-collector the motor vehicle sales tax
collected as required by this chapter.
(b) An offense under this section is:
(1) a Class C misdemeanor if the value of the tax
collected and not paid is less than $1,500;
(2) a state jail felony if the value of the tax
collected and not paid is $1,500 or more but less than $20,000;
(3) a felony of the third degree if the value of the
tax collected and not paid is $20,000 or more but less than
$100,000;
(4) a felony of the second degree if the value of the
tax collected and not paid is $100,000 or more but less than
$200,000; and
(5) a felony of the first degree if the value of the
tax collected and not paid is $200,000 or more.
(c) When amounts are obtained in violation of this section
pursuant to one scheme or continuing course of conduct, whether
from the same or several resources, the conduct may be considered as
one offense and the amounts aggregated in determining the grade of
the offense.
Added by Acts 2001, 77th Leg., ch. 442, § 20, eff. Sept. 1, 2001.
§ 152.105. VENUE FOR CRIMINAL PROSECUTIONS. Venue for
prosecution of any offense under this chapter is in:
(1) the county in which any element of the offense
occurs; or
(2) Travis County.
Added by Acts 2001, 77th Leg., ch. 442, § 20, eff. Sept. 1, 2001.
§ 152.106. PROHIBITED ADVERTISING; CRIMINAL
PENALTY. (a) A person who is required by Chapter 503,
Transportation Code, to hold a dealer's general distinguishing
number commits an offense if the person directly or indirectly
advertises, holds out, or states to a customer or to the public that
the person:
(1) will assume, absorb, or refund a part of the tax
imposed by this chapter; or
(2) will not add the tax imposed by this chapter to the
sales price of the motor vehicle sold, leased, or rented.
(b) An offense under this section is a Class C misdemeanor.
Added by Acts 2003, 78th Leg., ch. 209, § 26, eff. Oct. 1, 2003.
SUBCHAPTER G. DISPOSITION OF TAXES
§ 152.121. TAX SENT TO COMPTROLLER.
Text of section effective until September 1, 2005
(a) The county tax assessor-collector shall send the money
collected from taxes and penalties imposed by this chapter to the
comptroller as follows:
(1) on the 10th day of each month if during the last
preceding state fiscal year less than $2 million of the taxes and
penalties imposed by this chapter was collected by the office of the
county tax assessor-collector;
(2) once each week if during the last preceding state
fiscal year $2 million or more, but less than $10 million, of the
taxes and penalties imposed by this chapter was collected by the
office of the county tax assessor-collector; or
(3) daily (as collected) if during the last preceding
state fiscal year $10 million or more of the taxes and penalties
imposed by this chapter was collected by the office of the county
tax assessor-collector.
(b) Taxes on metal dealer plates collected by the Texas
Department of Transportation shall be deposited by the department
in the state treasury in the same manner as are other taxes
collected under this chapter.
(c) If the amount of net collections under Chapter 502,
Transportation Code, is insufficient to cover the amount of those
net collections authorized to be retained by a county as a
percentage of the tax and penalties collected under this chapter,
the comptroller shall on request of the county tax
assessor-collector authorize the county to retain a portion of the
tax and penalties collected under this chapter to cover the
deficiency.
Acts 1981, 67th Leg., p. 1595, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 456, ch. 93, § 13, eff. Sept.
1, 1983; Acts 1983, 68th Leg., p. 1360, ch. 280, § 1, eff. Sept.
1, 1983; Acts 1991, 72nd Leg., 1st C.S., ch. 4, § 23.01, eff.
Jan. 1, 1992; Acts 1995, 74th Leg., ch. 165, § 22(71), eff.
Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, § 30.260, eff.
Sept. 1, 1997.
For text of section effective September 1, 2005, see § 152.121,
post
§ 152.121. TAX SENT TO COMPTROLLER.
Text of section effective September 1, 2005
(a) After crediting the amounts as provided by Section
152.123, a county tax assessor-collector shall send money collected
from taxes and penalties imposed by this chapter to the comptroller
as follows:
(1) on the 10th day of each month if during the last
preceding state fiscal year less than $2 million of the taxes and
penalties imposed by this chapter was collected by the office of the
county tax assessor-collector;
(2) once each week if during the last preceding state
fiscal year $2 million or more, but less than $10 million, of the
taxes and penalties imposed by this chapter was collected by the
office of the county tax assessor-collector; or
(3) daily (as collected) if during the last preceding
state fiscal year $10 million or more of the taxes and penalties
imposed by this chapter was collected by the office of the county
tax assessor-collector.
(b) Taxes on metal dealer plates collected by the Texas
Department of Transportation shall be deposited by the department
in the state treasury in the same manner as are other taxes
collected under this chapter.
(c) If the amount of net collections under Chapter 502,
Transportation Code, and this chapter is insufficient to cover the
amount of those net collections authorized to be retained by a
county as a percentage of the tax and penalties collected under this
chapter, the comptroller shall on request of the county tax
assessor-collector authorize the county to retain a portion of the
tax and penalties collected under this chapter to cover the
deficiency.
Acts 1981, 67th Leg., p. 1595, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1983, 68th Leg., p. 456, ch. 93, § 13, eff. Sept.
1, 1983; Acts 1983, 68th Leg., p. 1360, ch. 280, § 1, eff. Sept.
1, 1983; Acts 1991, 72nd Leg., 1st C.S., ch. 4, § 23.01, eff.
Jan. 1, 1992; Acts 1995, 74th Leg., ch. 165, § 22(71), eff.
Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, § 30.260, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1325, § 9.01, eff.
Sept. 1, 2005.
For text of section effective until September 1, 2005, see §
152.121, ante
§ 152.122. ALLOCATION OF TAX. The comptroller shall
deposit the funds received under Section 152.121 of this code as
follows:
(1) 1/4 to the credit of the foundation school fund;
and
(2) the remaining funds to the credit of the general
revenue fund.
Acts 1981, 67th Leg., p. 1595, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1981, 67th Leg., p. 2778, ch. 752, § 9(h), eff.
Jan. 1, 1982. Acts 1984, 68th Leg., 2nd C.S., ch. 28, art. II, part
B, § 2, eff. Sept. 1, 1984; Acts 1984, 68th Leg., 2nd C.S., ch.
31, art. 1, § 42, eff. Sept. 1, 1985; Acts 1987, 70th Leg., 2nd
C.S., ch. 7, § 1, eff. Sept. 1, 1987.
§ 152.123. TAX RETAINED BY COUNTY.
Text of section effective September 1, 2005
(a) The county tax assessor- collector each calendar year
shall calculate five percent of the tax and penalties collected by
the county tax assessor-collector under this chapter in the
preceding calendar year. In addition, the county tax assessor-
collector shall calculate each calendar year an amount equal to
five percent of the tax and penalties that the comptroller:
(1) collected under Section 152.047 in the preceding
calendar year; and
(2) determines are attributable to sales in the
county.
(b) The county shall retain the following percentage of the
amounts calculated under Subsection (a) during each of the
following fiscal years:
(1) in fiscal year 2006, 10 percent;
(2) in fiscal year 2007, 20 percent;
(3) in fiscal year 2008, 30 percent;
(4) in fiscal year 2009, 40 percent;
(5) in fiscal year 2010, 50 percent;
(6) in fiscal year 2011, 60 percent;
(7) in fiscal year 2012, 70 percent;
(8) in fiscal year 2013, 80 percent;
(9) in fiscal year 2014, 90 percent;
(10) in fiscal year 2015 and succeeding years, 100
percent.
(c) The county shall credit the amounts retained under
Subsection (b) to the county's general fund.
Added by Acts 2003, 78th Leg., ch. 1325, § 9.01, eff. Sept. 1,
2005.
