bill exempting inherited vehicles from sales tax

The text as introduced · 595 words

By: Lambert
H.B. No. 3952

A BILL TO BE ENTITLED

AN ACT

relating to the exemption of motor vehicles transferred from a

decedent's estate.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 152.025(a), Tax Code, is amended to read

as follows:

(a) A tax is imposed on the recipient of a gift of a motor

vehicle. This section applies only if the person receiving the

motor vehicle:

(1) receives the vehicle from:

(A) the person's:

(i) spouse;

(ii) parent or stepparent;

(iii) grandparent or grandchild;

(iv) child or stepchild;

(v) sibling; or

(vi) guardian;

[ (B) a decedent's estate; ]

(B) [ (C) ] a trust subject to the Texas Trust Code

(Subtitle B, Title 9, Property Code) that was revocable by a

decedent or that was jointly revocable by a decedent and the

decedent's spouse; or

(C) [ (D) ] a trust subject to the Texas Trust Code

that is revocable by the person receiving the motor vehicle or that

is jointly revocable by the recipient and the recipient's spouse;

(2) is a trust subject to the Texas Trust Code that is

revocable by the transferor of the motor vehicle or that is jointly

revocable by the transferor and the transferor's spouse; or

(3) is exempt from federal income taxation under

Section 501(a), Internal Revenue Code of 1986, by being listed as an

exempt organization under Section 501(c)(3) of that code, and the

vehicle will be used for the purposes of the organization.

SECTION 2. Section 152.062(b-2), Tax Code, is amended to

read as follows:

(b-2) A joint statement required by Subsection (b)(3) that

relates to a gift from a person [ or estate ] described by Section

152.025(a)(1) must be filed in person by the recipient of the gift

or, as applicable, the person from whom the gift is received [ or a

person authorized to act on behalf of the estate from which the gift

is received ]. A motor vehicle title service required to be licensed

under Chapter 520, Transportation Code, may not be used to file the

statement. The person who files the statement must present to the

tax assessor-collector an unexpired identification document issued

to the person that bears the person's photograph and is:

(1) a driver's license or personal identification card

issued by this state or another state of the United States;

(2) an original United States passport or an original

passport issued by a foreign country;

(3) an identification card or similar form of

identification issued by the Texas Department of Criminal Justice;

(4) a United States military identification card; or

(5) an identification card or document issued by the

United States Department of Homeland Security or United States

Citizenship and Immigration Services.

SECTION 3. Subchapter E, Chapter 152, Tax Code, is amended

by adding Section 152.094 as follows:

Sec. 152.094. MOTOR VEHICLE ACQUIRED BY A DISTRUBUTEE.

(a) In this section, "distribute" and "estate" have the

meanings assigned by Chapter 22, Estates Code.

(b) The taxes imposed by this chapter do not apply to a motor

vehicle acquired under Section 501.031, Transportation Code or from

an estate by a distributee.

SECTION 4. The change in law made by this Act does 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 5. This Act takes effect September 1, 2025.