Villalobos Storage Bill Carries A Sales Tax Break

The text as introduced · 1,128 words

89R10903 AND-F

By: Villalobos
H.B. No. 5340

A BILL TO BE ENTITLED

AN ACT

relating to regulation of vehicle storage facilities and the

approval and regulation by the Texas Department of Motor Vehicles

of Internet websites for the public sale of certain abandoned

vehicles by vehicle storage facility operators.

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

SECTION 1. Section 2303.151, Occupations Code, is amended

by adding Subsection (h) to read as follows:

(h) Proof of delivery of notice provided under this section

must be evidenced by:

(1) a United States Postal Service electronic

certified mail receipt, United States Postal Service dated domestic

return receipt, or United States Postal Service firm mailing book

for accountable mail; and

(2) if applicable, any unopened certified letter

returned as:

(A) undeliverable;

(B) unclaimed;

(C) refused; or

(D) without a forwarding address.

SECTION 2. Section 2303.154(a), Occupations Code, is

amended to read as follows:

(a) If a vehicle is not claimed by a person permitted to

claim the vehicle before the 10th day after the date notice is

mailed or published under Section 2303.151 or 2303.152, the

operator of the vehicle storage facility shall consider the vehicle

to be abandoned and[ , if required by the law enforcement agency with

jurisdiction where the vehicle is located, ] report the abandonment

to the appropriate law enforcement agency with jurisdiction . If

the law enforcement agency notifies the vehicle storage facility

that the agency will send notices and dispose of the abandoned

vehicle under Subchapter B, Chapter 683, Transportation Code, the

vehicle storage facility shall pay the fee required under Section

683.031, Transportation Code.

SECTION 3. Section 2303.157(b), Occupations Code, is

amended to read as follows:

(b) An operator entitled to dispose of a vehicle under this

section shall [ may ] sell the vehicle at a public sale through an

Internet website approved by the Texas Department of Motor Vehicles

under Section 2303.1575. The operator is not required to obtain

[ without obtaining ] a release or discharge of any lien on the

vehicle, regardless of whether notice was provided by mail or by

publication under this chapter. The proceeds from the sale of the

vehicle shall be applied to the charges incurred for the vehicle

under Section 2303.155. The operator shall pay any excess proceeds

to the person entitled to those proceeds.

SECTION 4. Subchapter D, Chapter 2303, Occupations Code, is

amended by adding Section 2303.1575 to read as follows:

Sec. 2303.1575. INTERNET WEBSITE FOR PUBLIC SALE OF

ABANDONED VEHICLE; REQUIREMENTS FOR SALE. (a) The Texas

Department of Motor Vehicles shall approve one or more persons to

operate an Internet website to conduct the public sale of abandoned

vehicles under Section 2303.157.

(b) The board of the Texas Department of Motor Vehicles

shall adopt rules to implement this section, including rules:

(1) prescribing the manner and form of an application

for approval under Subsection (a);

(2) establishing eligibility requirements for

approval under Subsection (a);

(3) regulating the operation of an Internet website

approved under Subsection (a); and

(4) authorizing the revocation of a person's approval

under Subsection (a) as necessary to enforce a violation of this

section or a rule adopted under this section.

(c) A vehicle storage facility operator entitled to dispose

of a vehicle under Section 2303.157 shall submit the vehicle for

sale to an Internet website approved by the Texas Department of

Motor Vehicles under Subsection (a) in accordance with this section

and rules adopted under Subsection (b). The vehicle storage

facility operator shall provide to the Internet website photographs

with a full view of the vehicle's front, rear, driver's side, and

passenger's side.

(d) A vehicle storage facility operator may not submit a

vehicle for sale under Subsection (c) that is a salvage motor

vehicle because of damage caused exclusively by flooding unless the

facility has disclosed the damage to the Internet website and the

Texas Department of Motor Vehicles and the vehicle title bears any

notation required by Section 501.09112(d), Transportation Code. A

vehicle storage facility operator who submits a vehicle for sale

under Subsection (c) in violation of this subsection is liable to

the purchaser of the vehicle for three times the cost to repair the

undisclosed damage and any attorney's fees.

(e) A finding that a vehicle storage facility operator has

violated Subsection (d) more than once is grounds for the

commission to revoke the operator's license as provided by Section

51.353.

SECTION 5. Section 152.002(b), Tax Code, is amended to read

as follows:

(b) "Total consideration" does not include:

(1) a cash discount;

(2) a full cash or credit refund to a customer of the

sales price of a motor vehicle returned to the seller;

(3) the amount charged for labor or service rendered

in installing, applying, remodeling, or repairing the motor vehicle

sold;

(4) a financing, carrying, or service charge or

interest on credit extended on a motor vehicle sold under a

conditional sale or other deferred payment contract;

(5) the value of a motor vehicle taken by a seller as

all or a part of the consideration for sale of another motor

vehicle, including any cash payment to the buyer under Section

348.404 or 353.402, Finance Code;

(6) a charge for transportation of the motor vehicle

after a sale;

(7) motor vehicle inventory tax; [ or ]

(8) an amount made available to the customer under

Subchapter G, Chapter 382, Health and Safety Code ; or

(9) storage fees for a motor vehicle sold under

Section 2303.157, Occupations Code, or Subchapter B, Chapter 683,

Transportation Code .

SECTION 6. The following provisions of the Occupations Code

are repealed:

(1) Section 2303.151(g); and

(2) Section 2303.154(f).

SECTION 7. As soon as practicable after the effective date

of this Act, the board of the Texas Department of Motor Vehicles

shall adopt the rules required under Section 2303.1575, Occupations

Code, as added by this Act.

SECTION 8. The changes in law made by this Act to Chapter

2303, Occupations Code, apply only to a vehicle received in storage

on or after the effective date of this Act. A vehicle received in

storage before the effective date of this Act is governed by the law

in effect on the date the vehicle was received in storage, and the

former law is continued in effect for that purpose.

SECTION 9. The change in law made by this Act to Section

152.002(b), Tax Code, 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 10. This Act takes effect September 1, 2025.