| (a) Effective Date. This section is effective for motor vehicles that are leased on or after January 2, 2001. (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Lease--An agreement whereby an owner of a motor vehicle for consideration gives exclusive use of a motor vehicle to another for a period that is longer than 180 days. (2) Lessee--A person who enters into a lease for a specific motor vehicle primarily for the personal use of the lessee or the lessee's family. (3) Lessor--A person who owns a motor vehicle that is leased to another person. (4) Lessee's Affidavit--A sworn statement that a lessee executes to attest that the lessee does not hold the leased motor vehicle for the production of income and does not primarily use the leased motor vehicle for the production of income. (5) Motor vehicle--A passenger car or truck with a shipping weight of 9,000 pounds or less. (6) Reasonable date and/or time--A work weekday, Monday through Friday, and a time that is after 8:00 a.m. and before 5:00 p.m., unless the appraisal district and the lessor agree otherwise. (c) The comptroller will make available model forms that are adopted by reference in paragraph (1) of this subsection. Copies of the forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division. (1) The comptroller adopts by reference the following model forms: (A) Lessee's Affidavit of Primarily Non Income Producing Vehicle Use (Form 50-285); and (B) Lessor's Rendition or Property Report for Leased Automobiles (Form 50-288). (2) A chief appraiser or lessor must use the comptroller's model forms that are adopted by reference in paragraph (1) of this subsection, unless the non-model form: (A) substantially complies with the corresponding model form by using the same language in the same sequence as the model form; (B) is an electronic version of a comptroller's model form and preserves the same language in the same sequence as the comptroller's model form; or (C) has been approved by the comptroller in writing before the form is used. (3) After a lessee's affidavit is signed by a lessee and properly notarized, a lessor may make an electronic image of the lessee's affidavit and may produce the electronic image of the affidavit to the chief appraiser when an inspection is requested, subject to the condition of subsection (e)(1)(D) of this section. (4) Subject to the limitations that are provided in paragraph (2) of this subsection, if a chief appraiser uses a form other than the one that the comptroller has adopted, then the chief appraiser must make the form available to the lessor. A chief appraiser may not mandate the use of his form in lieu of the comptroller's model form and may not deny a lessor's claim for exemption based solely on the lessor's failure to use the chief appraiser's form. (5) No provision in this section should be construed as limiting the chief appraiser's authority to enter into an agreement for electronic exchange of information covered by this section in a format agreed to by the chief appraiser and the lessor. (d) A lessor satisfies the requirements of Tax Code, §11.252, for exemption of leased motor vehicles if the lessor: (1) properly completes and timely files with the chief appraiser the Lessor's Rendition or Property Report for Leased Automobiles (Form 50-288); (2) properly completes and timely files with the chief appraiser the comptroller-prescribed model application form (Lessor's Application for Personal Use Lease Automobile Exemptions); (3) receives Lessee's Affidavit of Primarily Non Income Producing Vehicle Use (Form 50-285) that the lessee executed on or before the date on which the required forms that are enumerated in paragraphs (1) and (2) of this subsection have been filed; and (4) maintains each Lessee's Affidavit of Primarily Non Income Producing Vehicle Use (Form 50-285) that pertains to each leased motor vehicle for which the lessor seeks an exemption. (e) A chief appraiser may inspect and/or obtain copies of lessees' affidavits that the lessor maintains. (1) Unless agreed to otherwise, a lessor and a chief appraiser shall use the following procedures when the chief appraiser proposes to inspect lessees' affidavits on leased motor vehicles for which the lessor seeks an exemption. (A) No less than 10 days prior to the inspection, the chief appraiser shall provide the lessor with notice of the chief appraiser's intention to inspect the lessees' affidavits in the lessor's possession or control. The notice must state a reasonable date and time when the chief appraiser proposes to inspect the lessees' affidavits and shall identify the affidavits that will be subject to inspection. (B) If the proposed date or time is not convenient, then the lessor may propose an alternate reasonable date or time by notifying the chief appraiser in writing. (C) The lessor shall provide the chief appraiser with reasonable accommodations to inspect and copy any of the lessees' affidavits, or shall permit the chief appraiser to take the affidavits off premises for a period of no less than 48 hours to inspect and copy. (D) The lessor may provide electronic images of the lessees' affidavits, unless the chief appraiser does not have equipment to receive or read electronic images. If the image is not sufficiently clear to distinguish the characteristics of a lessee's handwriting and to see the notarized signature and any other relevant details, the chief appraiser may request to inspect an original lessee's affidavit. (E) If the lessor is located more than 150 miles from the appraisal district's office, then the chief appraiser may submit a written request that the lessor either copy and mail the identified lessees' affidavits or send the original affidavits to the chief appraiser for at least 14 days for inspection and copying. The chief appraiser and the lessor may determine who should bear the costs of copying and mailing. (2) A chief appraiser should first attempt to obtain information from the lessor. If the lessor does not provide the requested information within the specified time period, then the chief appraiser may contact the lessee directly. (f) A properly executed Lessee's Affidavit of Primarily Non Income Producing Vehicle Use (Form 50-285) is prima facie evidence that the motor vehicle is not held for the production of income and is used primarily for non-income producing activities. A chief appraiser shall also consider the following evidence of primarily non-income producing use: (1) an affidavit by the lessee's spouse or other credible person who has information about the use of the leased motor vehicle and mileage records; and (2) a statement by the lessee's employer that the motor vehicle was not used or required to be used in the lessee's employment. (g) If a chief appraiser has reason to question, in whole or in part, the validity of the lessor's application for exemption, then the chief appraiser may investigate and shall notify the lessor of the chief appraiser's intent to investigate. The notice that is required by this rule shall: (1) identify the motor vehicle that the chief appraiser questions as qualifying for the exemption; (2) state separately the reason for questioning the claimed exemption or lessee's affidavit; (3) specify the additional information that the chief appraiser seeks; and (4) state the due date upon which the requested information must be delivered. (h) If a chief appraiser determines that some of the motor vehicles that the lessor claims in the application for exemption do not qualify for exemption, then the chief appraiser may modify the exemption by disallowing the amount of value that the non-exempt leased motor vehicles represent, but shall grant the exemption on the remaining value of the leased motor vehicles. Any notice of modification or denial of the claimed exemption shall be made in accordance with the notice requirements of Tax Code, §11.43 and §11.45. (i) The comptroller-prescribed, model application form (Lessor's Application for Personal Use Lease Automobile Exemptions) is not adopted by reference herein and may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division. |
| Source Note: The provisions of this §9.419 adopted to be effective March 21, 2002, 27 TexReg 2055; amended to be effective March 25, 2004, 29 TexReg 2922; amended to be effective March 10, 2008, 33 TexReg 2033; amended to be effective October 10, 2010, 35 TexReg 9107 |
