H.B. No. 1346
 
 
 
 
AN ACT
  relating to the date for prepayment of taxes on a dealer's heavy
  equipment inventory.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 23.1242(b) and (f), Tax Code, are
  amended to read as follows:
         (b)  Except for an item of heavy equipment sold to a dealer,
  an item of heavy equipment included in a fleet transaction, an item
  of heavy equipment that is the subject of a subsequent sale, or an
  item of heavy equipment that is subject to a lease or rental, an
  owner or a person who has agreed by contract to pay the owner's
  current year property taxes levied against the owner's heavy
  equipment inventory shall assign a unit property tax to each item of
  heavy equipment sold from a dealer's heavy equipment inventory.  In
  the case of a lease or rental, the owner shall assign a unit
  property tax to each item of heavy equipment leased or rented.  The
  unit property tax of each item of heavy equipment is determined by
  multiplying the sales price of the item or the monthly lease or
  rental payment received for the item, as applicable, by the unit
  property tax factor.  If the transaction is a lease or rental, the
  owner shall collect the unit property tax from the lessee or renter
  at the time the lessee or renter submits payment for the lease or
  rental.  The owner of the equipment shall state the amount of the
  unit property tax assigned as a separate line item on an
  invoice.  On or before the 20th [10th] day of each month the owner
  shall, together with the statement filed by the owner as required by
  this section, deposit with the collector an amount equal to the
  total of unit property tax assigned to all items of heavy equipment
  sold, leased, or rented from the dealer's heavy equipment inventory
  in the preceding month to which a unit property tax was
  assigned.  The money shall be deposited by the collector to the
  credit of the owner's escrow account for prepayment of property
  taxes as provided by this section.  An escrow account required by
  this section is used to pay property taxes levied against the
  dealer's heavy equipment inventory, and the owner shall fund the
  escrow account as provided by this subsection.
         (f)  On or before the 20th [10th] day of each month, a dealer
  shall file with the collector the statement covering the sale,
  lease, or rental of each item of heavy equipment sold, leased, or
  rented by the dealer in the preceding month.  On or before the 20th
  [10th] day of a month following a month in which a dealer does not
  sell, lease, or rent an item of heavy equipment, the dealer must
  file the statement with the collector and indicate that no sales,
  leases, or rentals were made in the prior month.  A dealer shall
  file a copy of the statement with the chief appraiser and retain
  documentation relating to the disposition of each item of heavy
  equipment sold and the lease or rental of each item of heavy
  equipment.  A chief appraiser or collector may examine documents
  held by a dealer as provided by this subsection in the same manner,
  and subject to the same conditions, as provided by Section
  23.1241(g).
         SECTION 2.  The change in law made by this Act applies to a
  dealer's heavy equipment inventory tax statement required to be
  filed on or after the effective date of this Act. A dealer's heavy
  equipment inventory tax statement required to be filed before the
  effective date of this Act is governed by the law in effect on the
  date the statement was required to be filed, and the former law is
  continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1346 was passed by the House on April
  13, 2017, by the following vote:  Yeas 138, Nays 0, 3 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1346 was passed by the Senate on May
  11, 2017, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor