Bill Text: TX HB4602 | 2023-2024 | 88th Legislature | Comm Sub

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Bill Title: Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2023-05-10 - Placed on General State Calendar [HB4602 Detail]

Download: Texas-2023-HB4602-Comm_Sub.html

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88R25986 CJC-F
By: Canales, Thompson of Brazoria H.B. No. 4602
Substitute the following for H.B. No. 4602:
By: Muñoz, Jr. C.S.H.B. No. 4602

A BILL TO BE ENTITLED
AN ACT
relating to the collection, remittance, and administration of
certain taxes on motor vehicles rented through a marketplace rental
provider; imposing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 334.105, Local Government Code, is
amended by adding Subsection (c) to read as follows:
(c) Notwithstanding Subsections (a) and (b), if a motor
vehicle subject to the tax imposed under this subchapter is rented
through a marketplace rental provider, the marketplace rental
provider shall collect the tax for the benefit of the municipality
or county. The marketplace rental provider shall add the tax
imposed under this subchapter, if applicable, and the gross rental
receipts tax imposed by Chapter 152, Tax Code, to the rental charge,
and the sum of the taxes is part of the rental charge, is a debt owed
to the marketplace rental provider by the person renting the
vehicle, and is recoverable at law in the same manner as the rental
charge.
SECTION 2. Section 334.109, Local Government Code, is
amended to read as follows:
Sec. 334.109. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
gross receipts of an owner of a motor vehicle or, if the motor
vehicle is rented through a marketplace rental provider, of the
provider, from the rental of the motor vehicle are presumed to be
subject to the tax imposed by this subchapter, except for gross
receipts for which the owner or marketplace rental provider has
accepted in good faith a properly completed exemption certificate.
SECTION 3. Section 334.110(a), Local Government Code, is
amended to read as follows:
(a) The owner of a motor vehicle used for rental purposes
who is required to file a report under this subchapter or, if the
motor vehicle is rented through a marketplace rental provider and
the provider is required to file a report under this subchapter, the
provider, shall keep for four years records and supporting
documents containing the following information on the amount of:
(1) gross rental receipts received from the rental of
the motor vehicle; and
(2) the tax imposed under this subchapter and paid to
the municipality or county by the owner or the marketplace rental
provider, as applicable, on each motor vehicle used for rental
purposes by the owner.
SECTION 4. Section 334.111(a), Local Government Code, is
amended to read as follows:
(a) An owner of a motor vehicle required to file a report
under this subchapter or, if applicable, a marketplace rental
provider required to file a report under this subchapter commits an
offense if the owner or provider fails to make and retain complete
records for the four-year period required by Section 334.110.
SECTION 5. Section 334.113, Local Government Code, is
amended by amending Subsection (a) and adding Subsections (a-1) and
(a-2) to read as follows:
(a) Except as otherwise provided by this section or another
provision of this subchapter, the [The] owner of a motor vehicle
required to collect the tax imposed under this subchapter shall
report and pay [send] the taxes collected to the municipality or
county as provided by the ordinance or order imposing the tax.
(a-1) Except as provided by Subsection (a-2), if a
marketplace rental provider collects the tax imposed under this
subchapter, the marketplace rental provider shall report and pay
the taxes collected to the municipality or county as provided by the
ordinance or order imposing the tax. The marketplace rental
provider shall certify to the owner of a motor vehicle rented
through the provider that the provider has collected, reported, and
paid the tax to the municipality or county. An owner who in good
faith accepts the marketplace rental provider's certification is
not required to collect, report, or pay the tax to the municipality
or county.
(a-2) The owner of a motor vehicle rented through a
marketplace rental provider may elect to report and pay the tax
imposed under this subchapter to the municipality or county. If the
owner elects to report and pay the tax under this subsection:
(1) the owner must:
(A) register as required by Section 152.065, Tax
Code; and
(B) inform the marketplace rental provider in
writing of the election; and
(2) the marketplace rental provider shall forward the
tax collected by the provider to the owner.
SECTION 6. Section 152.001(8), Tax Code, is amended to read
as follows:
(8) "Gross rental receipts" means value received or
promised as consideration to the owner of a motor vehicle or the
marketplace rental provider for rental of the vehicle, but does not
include:
(A) separately stated charges for insurance;
(B) charges for damages to the motor vehicle
occurring during the rental agreement period;
(C) separately stated charges for motor fuel sold
by the owner of the motor vehicle; or
(D) discounts.
SECTION 7. Subchapter A, Chapter 152, Tax Code, is amended
by adding Section 152.0011 to read as follows:
Sec. 152.0011. MARKETPLACE RENTAL PROVIDER. (a) Subject
to Subsection (b), in this chapter, "marketplace rental provider"
means a person who:
(1) operates any type of marketplace, including a
store with a physical location, an Internet website, a software or
mobile application, or a catalog, by which the owner of a motor
vehicle lists, markets, or advertises the owner's motor vehicle for
rental by others for consideration in this state;
(2) facilitates the rental of the owner's motor
vehicle by another person by communicating between the owner and
the other person the terms of the agreement and the acceptance of
those terms; and
(3) directly or indirectly collects or processes the
receipts or rental charges paid by the person renting the motor
vehicle for the owner of the motor vehicle.
(b) The term "marketplace rental provider" does not include
a person who lists, markets, or advertises motor vehicles for
rental by others if:
(1) the person lists, markets, or advertises only
motor vehicles registered in the manner provided under Section
152.061; and
(2) the owners of the motor vehicles described by
Subdivision (1) collect, report, and pay the tax imposed under
Section 152.026 to the comptroller in the same manner as the tax
under Chapter 151 is collected, reported, and paid by a retailer
under that chapter.
SECTION 8. Section 152.045, Tax Code, is amended to read as
follows:
Sec. 152.045. COLLECTION OF TAX ON GROSS RENTAL RECEIPTS.
(a) Except as otherwise provided by this section or another
provision of [inconsistent with this chapter and rules adopted
under] this chapter, an owner of a motor vehicle subject to the tax
on gross rental receipts shall collect, report, and pay the tax to
the comptroller in the same manner as the tax under Chapter 151
[Limited Sales, Excise and Use Tax] is collected, reported, and
paid by a retailer [retailers] under that chapter [Chapter 151 of
this code].
(a-1) Except as provided by Subsection (a-2), if the motor
vehicle is rented through a marketplace rental provider, the
marketplace rental provider shall collect, report, and pay the tax
on gross rental receipts to the comptroller in the manner
prescribed by Subsection (a). The marketplace rental provider
shall certify to the owner of a motor vehicle rented through the
provider that the provider has collected, reported, and paid the
tax. An owner who in good faith accepts the marketplace rental
provider's certification is not required to collect, report, or pay
the tax.
(a-2) The owner of a motor vehicle rented through a
marketplace rental provider may elect to report and pay the tax on
gross rental receipts to the comptroller. If the owner elects to
report and pay the tax under this subsection:
(1) the owner must:
(A) register as required by Section 152.065; and
(B) inform the marketplace rental provider in
writing of the election; and
(2) the marketplace rental provider shall forward the
tax collected by the provider to the owner.
(b) The owner of a motor vehicle subject to the tax on gross
rental receipts or, if the motor vehicle is rented through a
marketplace rental provider, the provider, shall add the tax to the
rental charge, and when added, the tax is:
(1) a part of the rental charge;
(2) a debt owed to the motor vehicle owner or
marketplace rental provider, as applicable, by the person renting
the vehicle; and
(3) recoverable at law in the same manner as the rental
charge.
(c) The comptroller may proceed against a person renting a
motor vehicle, the owner of the rented motor vehicle, or the
marketplace rental provider, as applicable, for any unpaid gross
rental receipts tax.
(d) In addition to any other penalty provided by law, the
owner of a motor vehicle subject to the tax on gross rental receipts
who is required to file a report as provided by this chapter and who
fails to timely file the report shall pay a penalty of $50. If the
motor vehicle is rented through a marketplace rental provider and
the provider is required to file a report under this chapter but
fails to timely file the report, the provider shall pay a penalty of
$50. The penalty provided by this subsection is assessed without
regard to whether the taxpayer subsequently files the report or
whether any taxes were due from the taxpayer for the reporting
period under the required report.
SECTION 9. Section 152.046(b), Tax Code, is amended to read
as follows:
(b) An owner of a motor vehicle on which the motor vehicle
sales or use tax has been paid who subsequently uses the vehicle for
rental [shall collect the gross rental receipts tax imposed by this
chapter from the person renting the vehicle. The owner] may credit
an amount equal to the motor vehicle sales or use tax paid by the
owner to the comptroller against the amount of gross rental
receipts due from the owner. This credit is not transferable and
cannot be applied against tax due and payable from the rental of
another vehicle belonging to the same owner.
SECTION 10. Section 152.063(b), Tax Code, is amended to
read as follows:
(b) Except as otherwise provided by Section 111.0041:
(1) the [The] owner of a motor vehicle used for rental
purposes shall keep for at least four years after the purchase of
the [a] motor vehicle records and supporting documents containing
[the following] information on the amount of:
(A) [(1)] total consideration for the motor
vehicle; and
(B) [(2)] motor vehicle sales or use tax paid on
the motor vehicle; and
(2) the owner of a motor vehicle used for rental
purposes and, if the motor vehicle is rented through a marketplace
rental provider, the provider, shall keep for at least four years
supporting documents containing information on the amount of:
(A) [(3)] gross rental receipts received by the
owner or provider, as applicable, from the rental of the motor
vehicle; and
(B) [(4)] gross rental receipts tax paid to the
comptroller by the owner or provider, as applicable, on each motor
vehicle used for rental purposes by the owner.
SECTION 11. Section 152.065, Tax Code, is amended to read as
follows:
Sec. 152.065. REQUIRED PERMITS. A motor vehicle owner or a
marketplace rental provider required to collect, report, and pay a
tax on gross rental receipts imposed by this chapter and a seller
required to collect, report, and pay a tax on a seller-financed sale
shall register as a retailer with the comptroller in the same manner
as is required of a retailer under Subchapter F, Chapter 151.
SECTION 12. Subchapter D, Chapter 152, Tax Code, is amended
by adding Section 152.070 to read as follows:
Sec. 152.070. MARKETPLACE RENTAL PROVIDER'S REPORT. A
marketplace rental provider shall send to the owner of a motor
vehicle that is rented through the provider a report each month that
shows the amount of tax collected, reported, and paid for each motor
vehicle that the owner owns and that is rented through the provider.
The provider is not required to send the report to an owner who
elects to report and pay the tax under Section 152.045(a-2).
SECTION 13. This Act applies only to a rental agreement for
the rental of a motor vehicle entered into on or after the effective
date of this Act. A rental agreement for the rental of a motor
vehicle entered into before the effective date of this Act is
governed by the law in effect on the date the rental agreement was
entered into, 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 14. This Act takes effect October 1, 2023.