34 TAC §9.419
The Comptroller of Public Accounts proposes amendment to §9.419,
concerning property tax exemption for motor vehicles leased for personal use.
The amendment is proposed to revise the model exemption application form to
implement House Bill 500, 78th Legislature, effective September 1, 2003, which
requires the chief appraiser to keep confidential the driver's license number,
personal identification number, or social security number provided on the
exemption application except for disclosure to appraisal office employees
who appraise property and as authorized by Tax Code, §11.48(b).
The rule also is amended to remove an obsolete provision that authorized
the use of a temporary form. The permanent version of the form is in effect
and this provision, subsection (c)(5), is no longer needed.
James LeBas, Chief Revenue Estimator, has determined that for the first
five-year period the rule will be in effect, there will be no significant
revenue impact on the state or units of local government.
Mr. LeBas also has determined that for each year of the first five years
the rule is in effect, the public benefit anticipated as a result of enforcing
the rule will be in providing additional information to taxpayers regarding
state and local tax laws. The proposed amendment would have no significant
fiscal impact on small businesses.
Comments on the proposal may be submitted to Buddy Breivogel, Manager,
Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528.
This section is proposed under Tax Code, §5.03, which requires
the comptroller to adopt rules establishing the minimum standards for the
administration and operation of an appraisal district, Tax Code, §5.07,
which requires the comptroller to prescribe the contents and form for the
administration of the property tax system, and Tax Code, §11.43(f), which
requires the comptroller to prescribe the contents and form for each kind
of property tax exemption.
The section implements Tax Code, Chapter 11, Subchapter B, §11.252.
§9.419.Procedures for Determining Property Tax Exemption for Motor Vehicles Leased for Personal Use.
(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 form
are available for inspection at the office of the
Texas Register
or may be obtained from the Comptroller of Public Accounts,
P.O. Box 13528, Austin, Texas 78711. Copies may also be requested by calling
our toll-free number, 1- 800-252-9121. In Austin, call (512) 305-9999. From
a Telecommunications Device for the Deaf (TDD), call 1-800-248-4099, toll
free. In Austin, the local TDD number is (512) 463-4621.
(1)
The comptroller adopts by reference the following model
forms:
(A)
Lessee's Affidavit of Primarily Non Income Producing Vehicle
Use (Form 50-285);
(B)
Lessor's Application for Personal Use Lease Automobile
Exemptions (Form 50-286); and
(C)
Lessor's Rendition or Property Report for Leased Automobiles
(Form 50-288).
(2)
A chief appraiser or lessor must use the comptroller model
forms that are adopted by reference in paragraph (1) of this subsection, unless
the non-model form:
(A)
for Lessee's Affidavit of Primarily Non Income Producing
Vehicle Use, for Lessor's Application for Personal Use Lease Automobile Exemptions,
and Lessor's Rendition or Property Report for Leased Automobiles substantially
complies with Form 50-285, Form 50-286, and Form 50-288 by using the same
language in the same sequence as the model form;
(B)
is an electronic version of a comptroller model form and
preserves the same language in the same sequence as the comptroller 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 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)
A Lessee's Affidavit of Personal
Use of Leased Vehicle, which the comptroller prescribed on September 10, 2001,
is the acceptable exemption form until the effective date of the comptroller
model forms that are adopted by reference in paragraph (1) of this subsection.]
(5)
[
(6)
] 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 Lessor's Application for Personal Use Lease Automobile Exemptions (Form
50-286);
(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) 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.
(1)
A chief appraiser shall also consider the following evidence
of primarily non-income producing use:
(A)
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
(B)
a statement by the lessee's employer that the motor vehicle
was not used or required to be used in the lessee's employment.
(2)
Since the rulemaking authority that is given the comptroller
does not extend to the Appraisal Review Board, this subsection does not apply
to proceedings or decisions of the Appraisal Review Board.
(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.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on December 16, 2003.
TRD-200308612
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Earliest possible date of adoption: February 1, 2004
For further information, please call: (512) 475-0387