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AN ACT
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relating to the collection of motor vehicle sales taxes on |
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seller-financed sales by dealers and the registration of finance |
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companies related to those dealers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 152.047, Tax Code, is amended by adding |
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Subsection (g-1) to read as follows: |
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(g-1) Subsection (g) does not apply to a transaction by a |
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dealer, as defined by Section 503.001, Transportation Code, in |
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which the dealer: |
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(1) sells a purchaser's account to a person registered |
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under Section 152.0475 as a related finance company; or |
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(2) grants a security interest in a purchaser's |
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account but retains custody and control of the account and the right |
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to receive payments in the absence of a default under the security |
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agreement. |
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SECTION 2. Subchapter C, Chapter 152, Tax Code, is amended |
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by adding Section 152.0475 to read as follows: |
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Sec. 152.0475. REGISTRATION OF RELATED FINANCE COMPANY. |
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(a) "Related finance company" means a person in which at least 80 |
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percent of the ownership is identical to the ownership of a dealer, |
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as defined by Section 503.001, Transportation Code. |
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(b) The comptroller shall establish a registration system |
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for related finance companies under this section. |
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(c) A related finance company may annually register with the |
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comptroller on a form prescribed by the comptroller. The |
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comptroller shall make the forms available to the public. |
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(d) The comptroller may charge an annual fee for each |
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registration. The fee may not exceed $1,500. |
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(e) The comptroller may adopt rules to implement this |
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section. |
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SECTION 3. The change in law made by this Act does not |
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affect taxes imposed before the effective date of this Act, and the |
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law in effect before the effective date of this Act is continued in |
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effect for purposes of the liability for and collection of those |
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taxes. |
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SECTION 4. This Act takes effect July 1, 2007, if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1617 passed the Senate on |
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May 2, 2007, by the following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1617 passed the House on |
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May 10, 2007, by the following vote: Yeas 136, Nays 0, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |