HB 1864
AN ACT relating to an exemption from the use tax imposed on certain motor
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Exempts new Texas residents from paying use tax on motor vehicles they previously purchased in Texas and already paid sales tax on when they bring the vehicle into the state. The exemption applies specifically to individuals who are establishing Texas residency and have already paid sales tax on their vehicle in Texas before moving. This change prevents new residents from being taxed twice on the same vehicle and provides a financial benefit for those relocating to Texas.
Subject Areas
Bill Text
relating to an exemption from the use tax imposed on certain motor vehicles brought into this state by new Texas residents. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 152.023, Tax Code, is amended by adding Subsection (d) to read as follows: (d) Notwithstanding any other provision of this section, a new resident of this state is not required to pay the tax imposed by this section if the motor vehicle brought into this state by the new resident was previously purchased by the new resident at retail sale in this state and the tax imposed by Section 152.021 was paid SECTION 2. The changes in law made by this Act do not affect tax liability accruing before the effective date of this Act. That liability continues in effect as if this Act had not been enacted, and the former law is continued in effect for the collection of taxes due and for civil and criminal enforcement of the liability SECTION 3. This Act takes effect September 1, 2025.
Bill Sponsors
Legislators who authored or co-sponsored this bill.
Bill History
Bill filed: AN ACT relating to an exemption from the use tax imposed on certain motor
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