(a) 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, other than a rental as defined
by Tax Code, §152.001(5), whereby an owner of a motor vehicle
gives exclusive use of the motor vehicle to another for consideration,
for a period that is longer than 180 days.
(2) Lessee--A person who enters into a lease for a
specific motor vehicle.
(3) Lessor-- The owner of a motor vehicle that is subject
to a lease.
(4) Lessee's Affidavit or Affidavit--A statement, either
under oath or by written, unsworn declaration, that a lessee or authorized
representative of the lessee if the lessee is an entity described
by Tax Code, §11.252(b) executes to attest that the lessee does
not hold the leased motor vehicle for the production of income and
the leased motor vehicle is used primarily for activities that do
not involve 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 time that is after
10:00 a.m. and before 5:00 p.m., Monday through Friday, excluding
holidays, unless the appraisal district and the lessor agree otherwise.
(b) The comptroller will make available 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
forms:
(A) Lessee's Affidavit Motor Vehicle Use Other than
Production of Income (Form 50-285); and
(B) Lessor's Rendition or Property Report Leased Automobiles
(Form 50-288).
(2) A chief appraiser, lessee and lessor must use the
comptroller's forms adopted by reference in paragraph (1) of this
subsection, available from the Comptroller of Public Accounts Property
Tax Assistance Division unless the form:
(A) substantially complies with the corresponding comptroller
form by using the same language in the same sequence as the comptroller
form;
(B) is an electronic version of a comptroller form
and preserves the same language in the same sequence as the comptroller
form; or
(C) is a rendition form approved by the comptroller
in writing before the form is used.
(3) A lessor shall maintain the affidavit, an electronic
image of the affidavit, or a certified copy of the affidavit and must
produce the affidavit, electronic image of the affidavit, or certified
copy of the affidavit to the chief appraiser for inspection or copying
when requested, subject to the conditions of subsection (f)(1) of
this section.
(4) 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 under Tax Code, §1.085.
(5) No provision in this section should be construed
as limiting the ability to electronically execute a document according
to the laws of the State of Texas.
(c) The Lessee's Affidavit Motor Vehicle Use Other
than Production of Income (Form 50-285) should be completed by lessees
and the affidavit, electronic image of the lessee's affidavit, or
certified copy of the lessee's affidavit should be maintained by lessors
in connection with applying for the exemption available under Tax
Code, §11.252.
(1) For lessor to qualify for the exemption, the Lessee
must not hold the motor vehicle for the production of income and the
motor vehicle must be used primarily for activities that do not include
the production of income.
(2) A motor vehicle is presumed to be used primarily
for activities that do not involve the production of income if:
(A) 50% or more of the miles the motor vehicle is driven
in a year are for non-income producing purposes;
(B) the motor vehicle is leased to the State of Texas
or a political subdivision of the State of Texas; or
(C) the motor vehicle:
(i) is leased to an organization that is exempt from
federal income taxation under Internal Revenue Code, §501(a),
as an organization described by Internal Revenue Code, §501(c)(3);
and
(ii) would be exempt from taxation if the vehicle were
owned by the organization.
(d) The Lessor's Rendition or Property Report Leased
Automobiles (Form 50-288) shall be used as the property report form
required by Tax Code, §11.252(i).
(1) To meet the reporting requirements of Tax Code, §11.252(i),
the lessor shall list each leased vehicle the lessor owns on January
1, regardless of whether the leased vehicle qualifies for an exemption
under Tax Code, §11.252, and provide the following:
(A) the year, make, model, and vehicle identification
number for each leased vehicle;
(B) the name of the lessee and address at which the
leased vehicle is kept;
(C) whether the lessee has designated the leased vehicle
as not held for the production of income and used primarily for activities
that do not involve the production of income; and
(D) whether the lessor maintains a lessee's affidavit,
electronic image of the lessee's affidavit, or a certified copy of
the lessee's affidavit for the leased vehicle.
(2) To meet the reporting requirements of Tax Code, §11.252(j),
the Lessor shall provide the form to the chief appraiser in the manner
provided by Subchapter B, Chapter 22, Tax Code.
(e) To apply for the exemption allowed under Tax Code, §11.252(a),
the lessor shall submit a fully completed and properly executed Lessor's
Exemption Application Motor Vehicles Leased for Use Other than Production
of Income (Form 50-286) to the chief appraiser pursuant to Tax Code, §11.43
and §11.45, and indicate at the appropriate space on the form
that the lessor is applying for the exemption allowed under Tax Code, §11.252(a)
for each qualifying leased vehicle.
(f) A chief appraiser may inspect and/or obtain copies
of lessees' affidavits, electronic images of the affidavits, or certified
copies of the affidavits that the lessor maintains. Unless agreed
to otherwise, a lessor and a chief appraiser shall use the following
procedures when the chief appraiser proposes to inspect and/or copy
lessees' affidavits, electronic images of the affidavits, or certified
copies of the affidavits on leased motor vehicles for which the lessor
seeks an exemption.
(1) 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 and/or copy the lessees' affidavits,
electronic images of the affidavits, or certified copies of the affidavits
in the lessor's possession or control. The notice must state a reasonable
time when the chief appraiser proposes to inspect and/or copy the
lessees' affidavits, electronic images of the affidavits, or certified
copies of the affidavits and shall identify the affidavits, electronic
images of the affidavits, or certified copies of the affidavits that
will be subject to inspection and/or copy.
(2) 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.
(3) The lessor shall provide the chief appraiser with
reasonable accommodations to inspect and/or copy any of the lessees'
affidavits, electronic images of the affidavits, or certified copies
of the affidavits or shall permit the chief appraiser to take the
affidavits, electronic images of the affidavits, or certified copies
of the affidavits off premises for a period of no less than 48 hours
to inspect and/or copy.
(4) 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 deliver the identified lessees'
affidavits, electronic images of the affidavits, or certified copies
of the 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 delivery and copying if any.
(g) The comptroller-prescribed exemption application
form (Lessor's Exemption Application Motor Vehicles Leased for Use
Other than Production of Income (Form 50-286)) 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.
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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; amended to be effective June 21, 2021, 46 TexReg 3736; amended to be effective April 24, 2022, 47 TexReg 2294 |