[(a)Effective Date. This section
is effective for motor vehicles that are leased on or after January
2, 2001.]
(a)[(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, 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,
[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--The owner of a motor vehicle that
is subject to a lease. [A person who owns a motor vehicle
that is leased to another person.]
(4)Lessee's Affidavit or Affidavit--A properly
notarized sworn statement 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. [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 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. [
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.]
(b)[(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 Motor Vehicle Use Other
than Production of Income [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, lessee and [or]
lessor must use the comptroller's [model] forms [that
are] adopted by reference in paragraph (1) of this subsection,
available from the Comptroller of Public Accounts Property Tax Assistance
Division unless the [non-model] form:
(A)substantially complies with the corresponding comptroller
[model] form by using the same language in the same
sequence as the comptroller [model] form;
(B)is an electronic version of a comptroller [
comptroller's model] form and preserves the same language in
the same sequence as the comptroller [comptroller's
model] form; or
(C)is a rendition form [has been]
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. [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.]
(4)[(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 under
Tax Code, §1.085. [covered by this section in a format
agreed to by the chief appraiser and the lessor.]
(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 for 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.
[(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)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)[(e)] 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.
[(1)]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)[(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 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 [date
and] 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)[(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.
(3)[(C)] 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.
[(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.]
(4)[(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 deliver
[either copy and mail] the identified lessees' affidavits
, electronic images of the affidavits, or certified copies of the
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 delivery and copying if any [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.]
(g)[(i)] The comptroller-prescribed
exemption [model] application form (Lessor's Exemption
Application Motor Vehicles Leased for Use Other than Production
of Income (Form 50-286) [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.
The agency certifies that legal counsel has reviewed
the proposal and found it to be within the state agency's legal authority
to adopt.
Filed with the Office
of the Secretary of State on April 12, 2021
TRD-202101509 Victoria North
General Counsel for Fiscal and Agency Affairs
Comptroller of Public Accounts
Earliest possible date of adoption: May 23,
2021
For further information, please call: (512) 475-2220
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