TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 3. TAX ADMINISTRATION

SUBCHAPTER F. MOTOR VEHICLE SALES TAX

34 TAC §3.61

The Comptroller of Public Accounts proposes amendments to §3.61 concerning credit for motor vehicle sales or use tax paid to another state.

This rule is being amended to reflect changes to emission surcharge provisions per House Bill 1365, 78th Legislature, 2003. The Texas motor vehicle sales or use tax credit for sales or use tax legally imposed and paid another state does not apply to the Texas Emissions Reduction Plan surcharge.

This rule is also being amended to clarify that the sales or use tax paid to another state includes any political subdivision of that state but does not include any other special taxes, such as a foreign country's tax, custom or duty tax, or import tax. It also is being amended to indicate what documentation is required by the purchaser to claim the credit.

John Heleman, 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. Heleman also has determined that for each year of the first five years the rule is in effect, the proposed amendment would benefit the public by identifying the tax responsibilities of purchasers of motor vehicles subject to the Texas Emissions Reduction Plan surcharge. This rule is proposed under Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Bryant K. Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.

This amendment is proposed 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.

This amendment implements Tax Code, §152.003 and §152.0215.

§3.61.Credit for Motor Vehicle Sales or Use Tax Paid to Another State.

A credit is allowed to a person, firm, or corporation that, as a purchaser, has paid legally imposed sales or use tax to another state, including any political subdivision of that state, on a motor vehicle that later becomes subject to the Texas Motor Vehicle Use Tax. The credit allowed is the amount of the prior payment to the other state and any political subdivision of that state. If the purchaser is leasing a vehicle and paying the tax to another state along with the lease payments, credit can be allowed only for tax already remitted to the other state prior to operating the vehicle in Texas. Credit is not allowed for a foreign country's tax, custom or duty tax, or import tax. The purchaser can show a tax receipt, a seller's invoice, or contract verifying the amount of tax paid to another state and any political subdivision of that state. Credit is not allowed against the $90 new resident tax or the Texas Emissions Reduction Plan surcharge, set forth in Tax Code, §152.0215 . If a motor vehicle purchased tax-free for use solely outside Texas [the state] is later used inside Texas [ the state], use tax is due on the [original] purchase price; however, credit is allowed in the amount of a legally imposed sales or use tax paid to another state and any political subdivision of that state.

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 July 21, 2009.

TRD-200902977

Martin Cherry

General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: September 6, 2009

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


34 TAC §3.68

The Comptroller of Public Accounts proposes an amendment to §3.68, concerning United States and foreign military personnel stationed in Texas. This amendment implements House Bill 481, 80th Legislature, 2007, which added Transportation Code, §520.031(d), to allow a title transferee who is an active duty member of the military or National Guard up to 60 days, rather than the standard 20 days, to register a used motor vehicle with the county tax assessor-collector.

John Heleman, 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. Heleman also has determined that for each year of the first five years the rule is in effect, the proposed amendment would benefit the public by indentifying the tax responsibilities of purchaser of motor vehicles subject to the motor vehicle sales and use tax, and registration and titling in Texas. This rule is proposed under Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Bryant K. Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.

This amendment is proposed under Tax Code, §111.002 and §111.0022, which provide 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, and taxes, fees, or other charges which the comptroller administers under other law.

The amendment implements Transportation Code, §520.031(d), and Tax Code, Chapter 152.

§3.68.United States and Foreign Military Personnel Stationed in Texas.

(a) North Atlantic Treaty Organization (NATO) foreign military personnel.

(1) Foreign military personnel, their dependents, and military-employed foreign civilians, if attached to a member of NATO and stationed in Texas, are exempt from the motor vehicle sales or use tax on any motor vehicle purchased in Texas or brought into Texas while stationed in Texas.

(2) Non-United States members of the North Atlantic Treaty Organization [as of December 14, 2005] include: Belgium, Bulgaria, Canada, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Turkey, and The United Kingdom.

(b) United States military personnel and foreign military personnel other than NATO personnel. A member of the United States military residing in Texas on military orders and foreign military personnel, their dependents, and military employed foreign civilians, other than NATO related personnel referred to in subsection (a) of this section, are:

(1) subject to the motor vehicle sales tax on any motor vehicle purchased in Texas and not immediately removed from Texas for use exclusively outside of Texas pursuant to Tax Code, §152.092 and §3.90 of this title (relating to Motor Vehicles Purchased for Use Outside of Texas); and

(2) subject to the motor vehicle use tax or the motor vehicle new resident use tax on any vehicle purchased outside of Texas and subsequently brought into Texas for use in Texas. The domicile and legal residence for United States military personnel is the person's "home of record" as designated in the person's [their] military records.

(c) Tax payment due dates.

(1) Motor vehicle sales or use tax is due 20 county working days from the date of Texas sale or first use in Texas, except as provided in paragraph (2) of this subsection. The tax must be paid when the purchaser files the appropriate documents with the county tax assessor-collector to transfer the title and register the vehicle, in accordance with Transportation Code, §520.031.

(2) A member of the United States military, of a reserve unit of the United States military, of the Texas National Guard or of the National Guard of another state who is on active military duty under an order of the president of the United States must pay motor vehicle sales or use tax as the purchaser of a motor vehicle no later than 60 county working days after the date of receipt of the vehicle.

(d) Calculation of tax due. For information regarding the proper calculation of motor vehicle sales or use tax due on the transfer of a vehicle title, refer to §3.79 of this title (relating to Standard Presumptive Value).

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 July 21, 2009.

TRD-200902978

Martin Cherry

General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: September 6, 2009

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


PART 9. TEXAS BOND REVIEW BOARD

CHAPTER 181. BOND REVIEW BOARD

SUBCHAPTER A. BOND REVIEW RULES

34 TAC §181.10

The Texas Bond Review Board (BRB) proposes amendments to 34 TAC Chapter 181, Subchapter A, §181.10, concerning Bond Review Rules. The proposed amendments to the rule are to facilitate information reporting related to material events of state securities approved by the BRB.

Robert Kline, Executive Director for the BRB, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendments to this section.

Mr. Kline has also determined that for each year of the first five years the amendments are in effect the public will benefit from clearer debt issuance and reporting procedures. There will be no effect on small or micro businesses. There is no additional anticipated economic cost to persons to comply with the amendments to this section.

Comments on the proposal may be submitted in writing to Robert Kline, Texas Bond Review Board, P.O. Box 13292, Austin, Texas 78711-3292. Comments may also be submitted electronically to kline@brb.state.tx.us or faxed to (512) 475-4802.

The amendments are proposed under Government Code, §1231.022, which gives BRB the authority to adopt rules governing application for review, the review process, and reporting requirements involved in the issuance of state securities.

The proposed amendments implement the Government Code, Chapter 1231.

§181.10.State Debt Issuer Reports.

(a) - (b) (No change.)

(c) An issuer of state securities issued in the form of commercial paper notes shall submit as part of the required semi-annual reports the following information for so long as the issuer has authority to issue commercial paper under program proceedings approved by the Board or exempt from approval pursuant to §181.9 of this title (relating to State Exemptions). The report shall contain the following information:

(1) - (4) (No change.)

(d) All issuers whose state securities are subject to review by the Board must file material event notices with the bond finance office when a submission is made to the Municipal Securities Rulemaking Board, Nationally Recognized Municipal Securities Information Repositories, or any applicable State Information Depository pursuant to Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C), as amended, or any analogous state statute. When requested by the bond finance office, such issuers must also file financial information with the office when the information is submitted to any of the above-described repositories pursuant to Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(A) or (B), as amended, or any analogous state statute.

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 July 27, 2009.

TRD-200903163

Robert Kline

Executive Director

Texas Bond Review Board

Earliest possible date of adoption: September 6, 2009

For further information, please call: (512) 463-9891


CHAPTER 190. ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS

SUBCHAPTER A. PROGRAM RULES

34 TAC §§190.1 - 190.3, 190.5

The Texas Bond Review Board (BRB) proposes amendments to 34 TAC Chapter 190, Subchapter A, §§190.1 - 190.3 and §190.5, concerning Private Activity Bond Rules. The proposed amendments are to update the rules pursuant to changes made in Senate Bill 2064 of the 81st Legislature.

Robert Kline, Executive Director for the BRB, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendments to these sections.

Mr. Kline also has determined that for each year of the first five years the amendments are in effect the public will benefit from updated rules pursuant to Senate Bill 2064 and clearer program procedures. There will be no effect on small or micro businesses. There is no additional anticipated economic cost to persons to comply with the amendments to these sections.

Comments on the proposal may be submitted in writing to Robert Kline, Texas Bond Review Board, P.O. Box 13292, Austin, Texas 78711-3292. Comments may also be submitted electronically to kline@brb.state.tx.us or faxed to (512) 475-4802.

The amendments are proposed under Government Code, §1372.004, which gives BRB the authority to adopt rules necessary to accomplish the purposes of Chapter 1372.

The proposed amendments implement the Government Code, Chapter 1372.

§190.1.General Provisions.

(a) - (b) (No change.)

(c) Definition of terms. The following words and terms, when used in this chapter [section], shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (2) (No change.)

(3) Application fee--Excluding residential rental projects and excluding sewage facilities, solid waste disposal facilities, and qualified hazardous waste facilities with multiple facilities on a single application, the $500 nonrefundable fee submitted to the board simultaneously with an application for reservation or an application for carryforward as defined in paragraph (4)(A) or (B) of this subsection. For residential rental projects, the $5,000 nonrefundable fee submitted to the board simultaneously with an application for reservation.For sewage facilities, solid waste disposal facilities, and qualified hazardous waste facilities with multiple facilities on a single application, a $500 nonrefundable fee per facility submitted to the board simultaneously with an application for reservation.

(4) - (32) (No change.)

(33) Local population--The population in the local government unit or units on whose behalf a housing finance corporation is created. If two local government units overlap, each having created housing finance corporations with the power to issue bonds to provide home mortgage financing, prior to the submission of either the application for reservation or the application for carryforward by either housing finance corporation, there shall be excluded from the population of the larger local government unit that portion of the population of any smaller local government unit having a population of 50,000 [20,000 ] or more which is within the larger local government unit, unless the smaller local government unit assigns its authority to issue qualified mortgage bonds, based upon its population, to the larger local government unit. A resolution assigning authority to issue qualified mortgage bonds must have been adopted within the twelve months preceding the date of submission of the application to the board.

(34) - (58) (No change.)

(d) - (f) (No change.)

§190.2.Allocation and Reservation System.

(a) - (c) (No change.)

(d) The order of priority for reservations in the category described in §1372.022(a)(4) shall further be determined as provided in §1372.0321 and §1372.0231.

(1) - (5) (No change.)

(6) Pursuant to §2306.6703(a)(2)(C), any multifamily issuer who indicates that they plan to redeem bonds within the first five years may not receive a reservation while there is a waiting list in their priority level established under §1372.0321, or if there is a waiting list in the applicable uniform state services region, as referenced in §1372.0231.

(e) (No change.)

(f) If state ceiling becomes available on August 15, it shall be available [prior to September 1] for all applications for reservations in the order determined by the board by lot. If all applications have been offered a portion of the available state ceiling then the board shall grant reservations in the order in which the applications are received. [, subject to §1372.0321 and subsection (d) of this section without regard to the provisions of §1372.0231.]

[(g) If any issuer which was subject to the lottery conducted as described in subsection (b) of this section does not, prior to September 1 of the program year, receive the amount requested by such issuer in its application for reservation filed on or before October 20 of the preceding year, and if state ceiling becomes available on or after September 1 of the program year, such issuer, subject to the provisions of §1372.037, Government Code, shall receive a reservation for any state ceiling becoming available on or after September 1 of the program year, in the order of priority established by such lottery, without regard to the provisions of §§1372.032, 1372.0321, and 1372.033, Government Code.]

(g) [(h)] All applications for a reservation filed after October 20 of the preceding year by any issuer for the issuance of bonds shall be accepted by the board in their order of receipt.

(h) [(i)] An application for a reservation for the current program year may not be submitted and a reservation may not be granted after November 15 [ December 1] of the program year.

(i) [(j)] An issuer may refuse to accept a reservation for any amount if the reservation is granted after September 23 of the program year.

(j) [(k)] The amount of the state's ceiling that has not been reserved prior to December 15 [1 ] of the program year and any amount previously reserved that becomes available on or after that date because of the cancellation of a reservation or any other reason, may be designated, by the board, as traditional carryforward for the carryforward purposes outlined in the Code through submission of the application for carryforward and any other required documentation. If the 120-day, 150-day, or 180-day period, as applicable, expires on or after December 24th of a program year in which a reservation was issued, an issuer is required to close on its bonds before December 24th. However, if an issuer's applicable period expires after December 31st, the issuer must notify the board in writing before December 24th of their intent to request non-traditional carryforward designation of the reservation and with their expected bond closing date. The granting by the board of a non-traditional carryforward designation through this described process, will allow an issuer the remaining balance of their 120-day, 150-day, or 180-day period as applicable to close on their bond by the expected closing date. If any issuer makes this election and does not close the bonds on or before the expected closing date, the amount of non-traditional carryforward designation will be administered by the board in compliance with the requirements of the code.

(k) [(l)] An issuer may submit an application for carryforward to the board at any time during the year through the last business day in December.

(l) [(m)] Issuers will be eligible for carryforward according to the priority classifications listed in the Act, specifically §1372.062.

(m) [(n)] With respect to the amount of the state ceiling set aside under §1372.0231(a)(1) and (3), applications are subject to review and approval by board staff prior to receiving a reservation of allocation.

(n) [(o)] With respect to the amount of the state ceiling set aside under §1372.0231(a)(1), should the Texas Department of Housing and Community Affairs (TDHCA) opt to participate in the lottery, TDHCA shall submit residential rental project applications to the board during the application period outlined in §1372.028. The board shall include a number of lottery balls in the lottery on behalf of TDHCA equal to the number of applications TDHCA submits that are eligible for participation in the lottery. Prior to the date of the lottery, TDHCA will rank its eligible applications according to the provisions established by TDHCA and shall provide this ranking to the board. After the lottery, the board will assign the lottery numbers drawn on behalf of TDHCA to TDHCA's eligible applications based upon the rank provided by TDHCA, with the lowest lottery number being assigned to the highest-ranking application. TDHCA applications submitted post-lottery are ineligible for lottery numbers and may not receive a reservation ahead of any other project with a lottery number.

(o) [(p)] For applications for reservations in the category described in §1372.022(a)(5):

(1) Applications for reservations in the category described in §1372.022(a)(5) must be filed in the preceding year during the time period established by the board for applications qualifying for the lottery.

(2) A Texas eligible loan may be used in determining annual need only if

(A) the qualified non-profit corporation purchased the Texas loan directly from an originating lender that made the loan, or

(B) the qualified non-profit corporation purchased the Texas loan directly from a non-profit corporation described in §53.47(g), Education Code that purchased the Texas loan directly from the originating lender that made the loan.

(3) A qualified non-profit corporation shall include a Texas eligible loan in its annual need only one time, and may not include any loan authorized under Section 428C of the Higher Education Act of 1965.

(4) The report of an independent auditor shall include a report stating that the audit was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Accordingly the audit shall include examining, on a test basis, evidence supporting the statement of annual need and performing an attributes sampling designed to achieve a minimum 90% confidence level with +/- 5% precision. Any errors in the sample shall be projected to the population from which the sample was selected, and the annual need of the issuer shall be adjusted accordingly.

(5) No issuer in the category described in §1372.022(a)(5) shall be granted a reservation that exceeds "annual need" as defined by §1372.033(2).

(p) [(q)] Until August 1 of the program year, within the category described by §1372.022(a)(6), priority shall be granted to the Texas Economic Development Bank for projects that the Texas Economic Development and Tourism Office determines meet the governor's criteria for funding from the Texas Enterprise Fund, pursuant to the requirements of §1372.031(b).

(q) On the last business day of a program year the Board may assign as carryforward unencumbered state ceiling to any state agency at their request and in the order received without a formal application process. Unencumbered means any state ceiling that is not reserved or designated as carryforward and for which no application for carryforward is pending.

§190.3.Filing Requirements for Applications for Reservation.

(a) - (f) (No change.)

(g) Application restrictions.

(1) - (3) (No change.)

(4) Except as provided by §1372.037(b) for any one project, no issuer[, ] prior to August 15 of the program year[, no issuer ] may apply for an amount that exceeds the [following ] maximum application limits as described in §1372.037(a).

[(A) $25,000,000 for issuers described by §1372.022(a)(1) other than the Texas Department of Housing and Community Affairs and the Texas State Affordable Housing Corporation;]

[(B) $50 million for issuers described by §1372.022(a)(2) other than the Texas Higher Education Coordinating Board or $75 million for the Texas Higher Education Coordinating Board;]

[(C) an amount as limited by the code for issuers described by §1372.022(a)(3);]

[(D) the lesser of $15 million or 15 percent of the amount set aside for this purpose for issuers described by §1372.022(a)(4);]

[(E) the amount as prescribed in §1372.033(d), (e) and (f) for issuers described by §1372.022(a)(5) and §1372.033;]

[(F) $50 million for issuers described by §1372.022(a)(6).]

(5) - (8) (No change.)

§190.5.Consideration of Qualified Applications by the Board.

(a) - (e) (No change.)

(f) The board may grant a reservation at any time on or after January 2 and before November 16 [December 2 ] if the amount of state ceiling available in any category exceeds the amount of state ceiling applied for in that category by the next applicant. Partial reservations may be granted only in accordance with §1372.036.

(g) - (i) (No change.)

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 July 27, 2009.

TRD-200903164

Robert Kline

Executive Director

Texas Bond Review Board

Earliest possible date of adoption: September 6, 2009

For further information, please call: (512) 463-9891