TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

The Comptroller of Public Accounts adopts an amendment to §3.18, concerning tax reimbursement, without changes to the proposed text as published in the February 1, 2002, issue of the Texas Register (27 TexReg 735).

The adopted amendment adds definitions, eliminates outdated provisions, clarifies tax reimbursement is not included in the tax base, and establishes requirements for taxpayers to prove the existence of tax reimbursement.

No comments were received regarding adoption of the amendment.

This amendment is adopted under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.

The amendment implements Tax Code, §201.102.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 18, 2002.

TRD-200201657

Martin Cherry

Deputy General Counsel for Taxation

Comptroller of Public Accounts

Effective date: April 7, 2002

Proposal publication date: February 1, 2002

For further information, please call: (512) 475-0387

Subchapter F. MOTOR VEHICLE SALES TAX

34 TAC §3.74

The Comptroller of Public Accounts adopts an amendment to §3.74, concerning seller responsibility, without changes to the proposed text as published in the January 25th, 2002, issue of the Texas Register (27 TexReg 583).

The amendment to subsection (d)(2) incorporates the legislative change made by SB1125, 77th Legislature, requiring sellers of certain motor vehicles to remit tax within 20 days from the date that the sold vehicle becomes eligible for registration. The amendment to subsection (e) reflects codification in SB1125 of the comptroller's policy in that no "bad debt" deduction may be claimed in seller-financed sales. Other subsections of the rule are amended for the purposes of clarity.

No comments were received regarding adoption of the amendment.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 13, 2002.

TRD-200201553

Martin Cherry

Deputy General Counsel for Taxation

Comptroller of Public Accounts

Effective date: April 2, 2002

Proposal publication date: January 25, 2002

For further information, please call: (512) 475-0387

Subchapter L. MOTOR FUEL TAX

34 TAC §3.201

The Comptroller of Public Accounts adopts the repeal of §3.201, concerning motor fuel testing fee, without changes to the proposed text as published in the February 1, 2002, issue of the Texas Register (27 TexReg 736).

This rule is being repealed because the authority for the administration and collection of the motor fuel testing fee was transferred to the Texas Department of Agriculture, effective May 22, 2001.

No comments were received regarding adoption of the repeal.

This repeal is adopted under Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2.

The repeal implements Texas Civil Statutes, Title 132, Art. 8614 §9(b).

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 13, 2002.

TRD-200201552

Martin Cherry

Deputy General Counsel for Taxation

Comptroller of Public Accounts

Effective date: April 2, 2002

Proposal publication date: February 1, 2002

For further information, please call: (512) 475-0387

Chapter 9. PROPERTY TAX ADMINISTRATION

Subchapter C. APPRAISAL DISTRICT ADMINISTRATION

34 TAC §9.415

The Comptroller of Public Accounts adopts an amendment to §9.415, concerning applications for property tax exemptions, without changes to the proposed text as published in the January 4, 2002, issue of the Texas Register (27 TexReg 109).

This rule is amended to adopt two new model application forms and revise several existing model forms in response to legislation enacted in the 77th Legislature, 2001. New language regarding the use of social security number under the Federal Privacy Act is also added to forms that contain a field for reporting a social security number.

The comptroller has corrected a typographical error on the existing model form for the Application for Goods Exported from Texas (Form 50-113). The word "not" has been deleted from the instructions regarding the payment of a penalty for filing a late application that is approved.

The comptroller received and considered comments on the proposed model form for the Travel Trailer Exemption Application (Form 50-298).

Hidalgo County Appraisal District submitted a comment that the requirement that the Travel Trailer Exemption Application be notarized should be deleted because it would impose an undue administrative burden on its staff. The comptroller modified the exemption application form because the requirement is inconsistent with the agency's other model exemption forms.

Collin Central Appraisal District submitted a comment that the Travel Trailer Exemption Application should require the applicant to provide the date of purchase to establish January 1 ownership. The comptroller added the date of purchase to the application.

Collin Central Appraisal District also submitted a comment that the "area of travel" requested on the Travel Trailer Exemption Application serves no purpose. The comptroller removed the request for the area of travel information.

Collin Central Appraisal District also submitted a comment that the Travel Trailer Exemption Application should include a statement that the exemption does not apply to school districts and may not apply to other entities if they have not voted to allow the exemption. The comptroller made no changes because an appraisal district may include the statement in its own form and obtain approval from the comptroller that its form is in substantial compliance with the comptroller's general exemption application form.

Brazos County Appraisal District submitted a comment that the Travel Trailer Exemption Application should include a field for license plate number to assist in the identification of travel trailers that are in the field or that have changed hands. The comptroller made the change by adding a field for license plate number.

Brazos County Appraisal District also submitted a comment that the Travel Trailer Exemption Application should require an applicant to attach a copy of license receipt as proof of current registration. The comptroller made no changes because a license plate number on the application form is sufficient to verify current registration in Texas without the need to place additional burden on the applicant.

This amendment is adopted under Tax Code, §11.43(f), which requires the comptroller to prescribe the contents and form for each kind of property tax exemption.

The amendment implements Tax Code, §§11.111, 11.13, 11.14, 11.17, 11.18, 11.181, 11.19, 11.20, 11.21, 11.22, 11.23(a)-(k), 11.24, 11.251, 11.27, 11.271, 11.28, 11.29, 11.30, 11.31, 11.32, 11.33, 11.437, and 11.182.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 14, 2002.

TRD-200201612

Martin Cherry

Deputy General Counsel for Taxation

Comptroller of Public Accounts

Effective date: April 3, 2002

Proposal publication date: January 4, 2002

For further information, please call: (512) 463-3699