82R21473 ALL-F
 
  By: Lyne, et al. H.B. No. 2237
 
  Substitute the following for H.B. No. 2237:
 
  By:  Phillips C.S.H.B. No. 2237
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the taxation and titling of certain off-road vehicles.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 152.001, Tax Code, is amended by
  amending Subdivision (3) and adding Subdivision (20) to read as
  follows:
               (3)  "Motor vehicle [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; and
                     (D)  an off-road vehicle that is not required to
  be registered under Chapter 502, Transportation Code.
               (20)  "Off-road vehicle" means:
                     (A)  an all-terrain vehicle or a recreational
  off-highway vehicle, as those terms are defined by Section 502.001,
  Transportation Code, provided that the vehicle may be designed by
  the manufacturer primarily for farming; or
                     (B)  a motorcycle designed by the manufacturer for
  off-highway use.
         SECTION 2.  Section 152.091, Tax Code, is amended to read as
  follows:
         Sec. 152.091.  FARM OR TIMBER USE. (a) The taxes imposed by
  this chapter do not apply to the sale or use of [a]:
               (1)  a farm machine, a trailer, a [or] semitrailer, or
  an off-road vehicle for use primarily for farming and ranching,
  including the rearing of poultry, and use in feedlots; or
               (2)  a machine, a trailer, a [or] semitrailer, or an
  off-road vehicle for use primarily for timber operations.
         (b)(1)  The taxes imposed by this chapter do not apply to the
  purchase of [a]:
                     (A)  a farm machine, a trailer, a [or]
  semitrailer, or an off-road vehicle that is to be leased for use
  primarily for farming and ranching, including the rearing of
  poultry, and use in feedlots; or
                     (B)  a machine, a trailer, a [or] semitrailer, or
  an off-road vehicle 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, or off-road vehicle 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, or off-road vehicle 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, or an
  off-road vehicle for use primarily for farming and ranching,
  including the rearing of poultry, and use in feedlots, or a machine,
  a trailer, [or] a semitrailer, or an off-road vehicle 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 or an off-road
  vehicle is used "primarily for timber operations" if the machine or
  off-road vehicle 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.
         SECTION 3.  Subchapter B, Chapter 501, Transportation Code,
  is amended by adding Section 501.0225 to read as follows:
         Sec. 501.0225.  CERTIFICATE OF TITLE REQUIRED FOR OFF-ROAD
  VEHICLE.  A person who purchases, imports, or otherwise acquires an
  off-road vehicle, as defined by Section 152.001, Tax Code, that is
  not required to be registered under Chapter 502 may not operate or
  permit the operation of the vehicle in this state, or sell or
  dispose of the vehicle in this state, until the person obtains a
  certificate of title for the vehicle.  This section does not apply
  to:
               (1)  an off-road vehicle that is exempt from motor
  vehicle sales and use taxation under Section 152.091, Tax Code; or
               (2)  an off-road vehicle acquired and sold or disposed
  of by a lienholder exercising a statutory or contractual lien right
  with regard to the vehicle, except that this section does apply to
  the purchaser of that vehicle.
         SECTION 4.  Section 501.0225, Transportation Code, as added
  by this Act, applies only to a person who purchases, imports, or
  otherwise acquires an off-road vehicle on or after the effective
  date of this Act. A person who purchases, imports, or otherwise
  acquires an off-road vehicle before the effective date of this Act
  is governed by the law in effect immediately before the effective
  date of this Act, and the former law is continued in effect for that
  purpose.
         SECTION 5.  The change in law made by this Act does 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.  This Act takes effect September 1, 2011.