89R4126 SRA-D     By: Shaheen H.B. No. 4300       A BILL TO BE ENTITLED   AN ACT   relating to the exemption of certain motor vehicle sales, gifts,   and exchanges from motor vehicle sales and use taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 152.001(1) and (2), Tax Code, are   amended to read as follows:                (1)  "Sale":                      (A)  includes:                            (i) [(A)]  an installment and credit sale;                            (ii) [(B)]  an exchange of property for   property or money, other than an exchange described by Paragraph   (B)(i);                            (iii) [(C)]  an exchange in which property   is transferred but the seller retains title as security for payment   of the purchase price;                            (iv) [(D)]  a transaction in which a motor   vehicle is transferred to another person without payment of   consideration, other than a transaction described by Paragraph   (B)(ii) [and that does not qualify as a gift under Section 152.025];   and                            (v) [(E)]  any other closed transaction that   constitutes a sale; and                      (B)  does not include:                            (i)  the even exchange of two motor   vehicles; and                            (ii)  the gift of a motor vehicle.                (2)  "Retail sale" means a sale of a motor vehicle   except:                      (A)  the sale of a new motor vehicle in which the   purchaser is a franchised dealer who is authorized by law and by   franchise agreement to offer the vehicle for sale as a new motor   vehicle and who acquires the vehicle either for the exclusive   purpose of sale in the manner provided by law or for purposes   allowed under Chapter 503, Transportation Code;                      (B)  the sale of a vehicle other than a new motor   vehicle in which the purchaser is a dealer who holds a dealer's   general distinguishing number issued under Chapter 503,   Transportation Code, and who acquires the vehicle either for the   exclusive purpose of resale in the manner provided by law or for   purposes allowed under Chapter 503, Transportation Code;                      (C)  the sale to a franchised dealer of a new motor   vehicle removed from the franchised dealer's inventory for the   purpose of entering into a contract to lease the vehicle to another   person if, immediately after executing the lease contract, the   franchised dealer transfers title of the vehicle and assigns the   lease contract to the lessor of the vehicle; [or]                      (D)  the sale of a new motor vehicle in which the   purchaser is a manufacturer or distributor as those terms are   defined by Section 2301.002, Occupations Code, who acquires the   motor vehicle either for the exclusive purpose of sale in the manner   provided by law or for purposes allowed under Section 503.064,   Transportation Code; or                      (E)  the sale of a used motor vehicle from one   individual to another individual, provided that the sale takes   place in this state and the seller is not acting as a motor vehicle   dealer under Subchapter B, Chapter 503, Transportation Code, in   relation to the sale.          SECTION 2.  Section 152.041(a), Tax Code, is amended to read   as follows:          (a)  The tax assessor-collector of the county in which an   application for registration or for a Texas certificate of title is   made shall collect taxes imposed by this chapter[, subject to   Section 152.0412,] unless another person is required by this   chapter to collect the taxes.          SECTION 3.  Sections 152.062(b) and (c), Tax Code, are   amended to read as follows:          (b)  The statement must be [in the following form:                [(1)  if a motor vehicle is sold, the seller and   purchaser shall make] a joint statement by the seller and purchaser   of the then value in dollars of the total consideration for the   vehicle[;                [(2)  if the ownership of a motor vehicle is   transferred as the result of an even exchange, the principal   parties shall make a joint statement describing the nature of the   transaction; or                [(3)  if the ownership of a motor vehicle is   transferred as the result of a gift, the principal parties shall   make a joint statement describing the nature of the transaction and   the relationship between the principal parties].          (c)  If a party to a sale[, even exchange, or gift] is a   corporation, the president, vice-president, secretary, manager, or   other authorized officer of the corporation shall make the   statement for the corporation.          SECTION 4.  The following provisions of the Tax Code are   repealed:                (1)  Section 152.002(f);                (2)  Section 152.024;                (3)  Section 152.025;                (4)  Section 152.0412;                (5)  Sections 152.062(b-1) and (b-2); and                (6)  Section 152.1222.          SECTION 5.  The changes in law made by this Act do 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, 2025.