H.B. No. 315
 
 
 
 
AN ACT
  relating to the applicability of the law governing the ad valorem
  taxation of a dealer's motor vehicle inventory.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 23.121(a)(3), Tax Code, is amended to
  read as follows:
               (3)  "Dealer" means a person who holds a dealer's
  general distinguishing number issued by the Texas Department of
  Motor Vehicles under the authority of Chapter 503, Transportation
  Code, or who is legally recognized as a motor vehicle dealer
  pursuant to the law of another state and who complies with the terms
  of Section 152.063(f).  The term does not include:
                     (A)  a person who holds a manufacturer's license
  issued under Chapter 2301, Occupations Code;
                     (B)  an entity that is owned or controlled by a
  person who holds a manufacturer's license issued under Chapter
  2301, Occupations Code; [or]
                     (C)  a dealer whose general distinguishing number
  issued by the Texas Department of Motor Vehicles under the
  authority of Chapter 503, Transportation Code, prohibits the dealer
  from selling a vehicle to any person except a dealer; or
                     (D)  a dealer who:
                           (i)  does not sell motor vehicles described
  by Section 152.001(3)(A);
                           (ii)  meets either of the following
  requirements:
                                 (a)  the total annual sales from the
  dealer's motor vehicle inventory, less sales to dealers, fleet
  transactions, and subsequent sales, for the 12-month period
  corresponding to the preceding tax year are 25 percent or less of
  the dealer's total revenue from all sources during that period; or
                                 (b)  the dealer did not sell a motor
  vehicle to a person other than another dealer during the 12-month
  period corresponding to the preceding tax year and the dealer
  estimates that the dealer's total annual sales from the dealer's
  motor vehicle inventory, less sales to dealers, fleet transactions,
  and subsequent sales, for the 12-month period corresponding to the
  current tax year will be 25 percent or less of the dealer's total
  revenue from all sources during that period;
                           (iii)  not later than August 31 of the
  preceding tax year, filed with the chief appraiser and the
  collector a declaration on a form prescribed by the comptroller
  stating that the dealer elected not to be treated as a dealer under
  this section in the current tax year; and
                           (iv)  renders the dealer's motor vehicle
  inventory in the current tax year by filing a rendition with the
  chief appraiser in the manner provided by Chapter 22.
         SECTION 2.  Section 23.121, Tax Code, is amended by adding
  Subsection (a-1) to read as follows:
         (a-1)  A dealer who has elected to file the declaration
  described by Subsection (a)(3)(D)(iii) and to render the dealer's
  motor vehicle inventory as provided by Subsection (a)(3)(D)(iv)
  must continue to file the declaration and render the dealer's motor
  vehicle inventory so long as the dealer meets the requirements of
  Subsection (a)(3)(D)(ii)(a) or (b).
         SECTION 3.  This Act applies only to the ad valorem taxation
  of a dealer's motor vehicle inventory for a tax year beginning on or
  after the effective date of this Act.
         SECTION 4.  This Act takes effect January 1, 2014.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 315 was passed by the House on May 10,
  2013, by the following vote:  Yeas 143, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 315 on May 24, 2013, by the following vote:  Yeas 146, Nays 0, 1
  present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 315 was passed by the Senate, with
  amendments, on May 22, 2013, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor