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AN ACT
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relating to the appraisal for ad valorem tax purposes of certain |
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dealer's heavy equipment inventory; providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 23.1241(a)(1), (2), (6), (7), (8), and |
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(9), Tax Code, are amended to read as follows: |
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(1) "Dealer" means a person engaged in the business in |
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this state of selling, leasing, or renting heavy equipment. |
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(2) "Dealer's heavy equipment inventory" means all |
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items of heavy equipment that a dealer holds for sale, lease, or |
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rent during a 12-month period [at retail]. [The term includes items
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of heavy equipment that are leased or rented but subject to a
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purchase option by the lessee or renter.] |
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(6) "Heavy equipment" means self-propelled, |
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self-powered, or pull-type equipment, including farm equipment or a |
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diesel engine, that weighs at least 1,500 [3,000] pounds and is |
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intended to be used for agricultural, construction, industrial, |
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maritime, mining, or forestry uses. The term does not include a |
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motor vehicle that is required by: |
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(A) Chapter 501, Transportation Code, to be |
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titled; or |
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(B) Chapter 502, Transportation Code, to be |
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registered. |
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(7) "Sales price" means: |
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(A) the total amount of money paid or to be paid |
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to a dealer for the purchase of an item of heavy equipment; or |
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(B) for a lease or rental [with an option to
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purchase], the total amount of the lease or rental payments [plus
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any final consideration, excluding interest]. |
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(8) "Subsequent sale" means a dealer-financed sale of |
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an item of heavy equipment that, at the time of the sale, has been |
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the subject of a dealer-financed sale from the same dealer's heavy |
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equipment inventory in the same calendar year. The term does not |
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include a rental or lease with an unexercised purchase option or |
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without a purchase option. |
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(9) "Total annual sales" means the total of the: |
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(A) sales price for each sale from a dealer's |
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heavy equipment inventory in a 12-month period; and |
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(B) lease and rental payments received for each |
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lease or rental of heavy equipment inventory in a 12-month period. |
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SECTION 2. Section 23.1241, Tax Code, is amended by |
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amending Subsections (b), (e), and (j) and adding Subsection (b-1) |
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to read as follows: |
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(b) For the purpose of the computation of property tax,[:
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[(1)] the market value of a dealer's heavy equipment |
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inventory on January 1 is the total annual sales, less sales to |
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dealers, fleet transactions, and subsequent sales, for the 12-month |
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period corresponding to the preceding tax year, divided by 12[; and
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[(2)
a sale is considered to occur when possession of
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an item of heavy equipment is transferred from the dealer to the
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purchaser]. |
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(b-1) For the purpose of the computation of property tax on |
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the market value of the dealer's heavy equipment inventory, the |
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sales price of an item of heavy equipment that is sold during the |
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preceding tax year after being leased or rented for a portion of |
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that same tax year is considered to be the sum of the sales price of |
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the item plus the total lease and rental payments received for the |
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item in the preceding tax year. |
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(e) A dealer is presumed to be an owner of a dealer's heavy |
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equipment inventory on January 1 if, in the 12-month period ending |
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on December 31 of the preceding year, the dealer sold, leased, or |
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rented an item of heavy equipment to a person other than a dealer. |
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The presumption is not rebutted by the fact that a dealer has no |
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item of heavy equipment physically on hand for sale from the |
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dealer's heavy equipment inventory on January 1. |
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(j) In addition to other penalties provided by law, a dealer |
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who fails to file or fails to timely file a declaration required by |
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Subsection (f) shall forfeit a penalty. A tax lien attaches to the |
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dealer's business personal property to secure payment of the |
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penalty. The appropriate district attorney, criminal district |
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attorney, or county attorney may [shall] collect the penalty |
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established by this section in the name of the [chief appraiser or] |
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collector. The chief appraiser may collect the penalty in the name |
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of the chief appraiser. The chief appraiser or the appropriate |
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district attorney, criminal district attorney, or county attorney |
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may sue to enforce compliance with this section. Venue of an action |
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brought under this subsection, including an action for injunctive |
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relief, is in the county in which the violation occurred or in the |
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county in which the owner maintains the owner's principal place of |
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business or residence. The court may award attorney's fees to a |
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chief appraiser, district attorney, criminal district attorney, or |
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county attorney who prevails in a suit to collect a penalty or |
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enforce compliance with this section. A penalty forfeited under |
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this subsection is $1,000 for each month or part of a month in which |
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a declaration is not filed or timely filed after it is due. |
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SECTION 3. Sections 23.1242(b), (d), (e), (f), and (m), Tax |
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Code, are amended to read as follows: |
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(b) Except for an item of heavy equipment sold to a dealer, |
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an item of heavy equipment included in a fleet transaction, [or] an |
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item of heavy equipment that is the subject of a subsequent sale, or |
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an item of heavy equipment that is subject to a lease or rental, an |
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owner or a person who has agreed by contract to pay the owner's |
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current year property taxes levied against the owner's heavy |
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equipment inventory shall assign a unit property tax to each item of |
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heavy equipment sold from a dealer's heavy equipment inventory. In |
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the case of a lease or rental, the owner shall assign a unit |
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property tax to each item of heavy equipment leased or rented. The |
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unit property tax of each item of heavy equipment is determined by |
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multiplying the sales price of the item or the monthly lease or |
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rental payment received for the item, as applicable, by the unit |
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property tax factor. If the transaction is a lease or rental, the |
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owner shall collect the unit property tax from the lessee or renter |
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at the time the lessee or renter submits payment for the lease or |
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rental. The owner of the equipment shall state the amount of the |
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unit property tax assigned as a separate line item on an invoice. |
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On or before the 10th day of each month the owner shall, together |
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with the statement filed by the owner as required by this section, |
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deposit with the collector an amount equal to the total of unit |
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property tax assigned to all items of heavy equipment sold, leased, |
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or rented from the dealer's heavy equipment inventory in the |
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preceding month to which a unit property tax was assigned. The |
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money shall be deposited by the collector to the credit of the |
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owner's escrow account for prepayment of property taxes as provided |
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by this section. An escrow account required by this section is used |
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to pay property taxes levied against the dealer's heavy equipment |
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inventory, and the owner shall fund the escrow account as provided |
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by this subsection. |
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(d) Except as provided by Section 23.1243, the [The] owner |
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may not withdraw funds in an escrow account created under this |
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section. |
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(e) The comptroller by rule shall adopt a dealer's heavy |
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equipment inventory tax statement form. Each month, a dealer shall |
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complete the form regardless of whether an item of heavy equipment |
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is sold, leased, or rented. A dealer may use no other form for that |
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purpose. The statement may include the information the comptroller |
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considers appropriate but shall include at least the following: |
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(1) a description of each item of heavy equipment |
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sold, leased, or rented including any unique identification or |
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serial number affixed to the item by the manufacturer; |
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(2) the sales price of or lease or rental payment |
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received for the item of heavy equipment, as applicable; |
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(3) the unit property tax of the item of heavy |
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equipment, if any; and |
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(4) the reason no unit property tax is assigned if no |
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unit property tax is assigned. |
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(f) On or before the 10th day of each month, a dealer shall |
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file with the collector the statement covering the sale, lease, or |
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rental of each item of heavy equipment sold, leased, or rented by |
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the dealer in the preceding month. On or before the 10th day of a |
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month following a month in which a dealer does not sell, lease, or |
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rent an item of heavy equipment, the dealer must file the statement |
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with the collector and indicate that no sales, leases, or rentals |
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were made in the prior month. A dealer shall file a copy of the |
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statement with the chief appraiser and retain documentation |
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relating to the disposition of each item of heavy equipment sold and |
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the lease or rental of each item of heavy equipment. A chief |
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appraiser or collector may examine documents held by a dealer as |
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provided by this subsection in the same manner, and subject to the |
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same conditions, as provided by Section 23.1241(g). |
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(m) In addition to other penalties provided by law, a dealer |
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who fails to file or fails to timely file a statement as required by |
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this section shall forfeit a penalty. A tax lien attaches to the |
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dealer's [owner's] business personal property to secure payment of |
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the penalty. The appropriate district attorney, criminal district |
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attorney, or county attorney may [shall] collect the penalty |
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established by this section in the name of the [chief appraiser or] |
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collector. The chief appraiser may collect the penalty in the name |
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of the chief appraiser. The chief appraiser or the appropriate |
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district attorney, criminal district attorney, or county attorney |
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may sue to enforce compliance with this section. Venue of an action |
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brought under this subsection, including an action for injunctive |
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relief, is in the county in which the violation occurred or in the |
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county in which the owner maintains the owner's principal place of |
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business or residence. The court may award attorney's fees to a |
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chief appraiser, district attorney, criminal district attorney, or |
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county attorney who prevails in a suit to collect a penalty or |
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enforce compliance with this section. A penalty forfeited under |
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this subsection is $500 for each month or part of a month in which a |
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statement is not filed or timely filed after it is due. |
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SECTION 4. Subchapter B, Chapter 23, Tax Code, is amended by |
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adding Section 23.1243 to read as follows: |
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Sec. 23.1243. REFUND OF PREPAYMENT OF TAXES ON FLEET |
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TRANSACTION. (a) In this section, "dealer" and "fleet |
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transaction" have the meanings assigned those terms by Section |
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23.1241. |
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(b) A dealer may apply to the chief appraiser for a refund of |
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the unit property tax paid on a sale that is a fleet transaction. |
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(c) The chief appraiser shall determine whether to approve |
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or deny, wholly or partly, the refund requested in the application. |
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The chief appraiser shall deliver a written notice of the chief |
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appraiser's determination to the collector maintaining the escrow |
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account described by Section 23.1242 and to the applicant that |
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states the amount, if any, to be refunded. |
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(d) A collector who receives a notice described by |
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Subsection (c) stating an amount to be refunded shall pay the amount |
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to the dealer not later than the 45th day after the date the |
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collector receives the notice. The dealer shall use the dealer's |
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best efforts to pay the refund to the customer who paid the tax that |
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relates to the fleet transaction for which the refund is requested |
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not later than the 30th day after the date the dealer receives the |
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refund. |
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SECTION 5. Section 41.44(a), Tax Code, is amended to read as |
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follows: |
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(a) Except as provided by Subsections (b), (b-1), (c), |
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(c-1), and (c-2), to be entitled to a hearing and determination of a |
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protest, the property owner initiating the protest must file a |
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written notice of the protest with the appraisal review board |
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having authority to hear the matter protested: |
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(1) before May 1 or not later than the 30th day after |
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the date that notice to the property owner was delivered to the |
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property owner as provided by Section 25.19, if the property is a |
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single-family residence that qualifies for an exemption under |
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Section 11.13, whichever is later; |
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(2) before June 1 or not later than the 30th day after |
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the date that notice was delivered to the property owner as provided |
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by Section 25.19 in connection with any other property, whichever |
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is later; |
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(3) in the case of a protest of a change in the |
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appraisal records ordered as provided by Subchapter A of this |
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chapter or by Chapter 25, not later than the 30th day after the date |
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notice of the change is delivered to the property owner; [or] |
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(4) in the case of a determination that a change in the |
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use of land appraised under Subchapter C, D, E, or H, Chapter 23, |
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has occurred, not later than the 30th day after the date the notice |
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of the determination is delivered to the property owner; or |
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(5) in the case of a determination of eligibility for a |
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refund under Section 23.1243, not later than the 30th day after the |
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date the notice of the determination is delivered to the property |
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owner. |
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SECTION 6. Section 41.47, Tax Code, is amended by adding |
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Subsection (c) to read as follows: |
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(c) If, in the case of a determination of eligibility for a |
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refund requested under Section 23.1243, the appraisal review board |
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determines that the dealer is entitled to a refund in excess of the |
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amount, if any, to which the chief appraiser determined the dealer |
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to be entitled, the board shall order the chief appraiser to deliver |
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written notice of the board's determination to the collector and |
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the dealer in the manner provided by Section 23.1243(c). |
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SECTION 7. Section 42.01, Tax Code, is amended to read as |
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follows: |
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Sec. 42.01. RIGHT OF APPEAL BY PROPERTY OWNER. A property |
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owner is entitled to appeal: |
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(1) an order of the appraisal review board |
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determining: |
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(A) a protest by the property owner as provided |
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by Subchapter C of Chapter 41; [or] |
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(B) a determination of an appraisal review board |
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on a motion filed under Section 25.25; or |
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(C) a determination of an appraisal review board |
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of eligibility for a refund requested under Section 23.1243; or |
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(2) an order of the comptroller issued as provided by |
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Subchapter B, Chapter 24, apportioning among the counties the |
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appraised value of railroad rolling stock owned by the property |
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owner. |
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SECTION 8. Sections 23.1241(i) and 23.1242(l), Tax Code, |
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are repealed. |
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SECTION 9. This Act applies only to ad valorem taxes imposed |
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for a tax year beginning on or after the effective date of this Act. |
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SECTION 10. This Act takes effect January 1, 2012. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2476 was passed by the House on April |
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27, 2011, by the following vote: Yeas 148, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2476 on May 21, 2011, by the following vote: Yeas 141, Nays 0, |
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3 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2476 was passed by the Senate, with |
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amendments, on May 19, 2011, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |