HB 4300

relating to the exemption of certain motor vehicle sales, gifts,
and exchanges from motor vehicle sales and use taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 152.001(1) and (2), Tax Code, are
(i) [(A)]  an installment and credit sale;
(ii) [(B)]  an exchange of property for
property or money, other than an exchange described by Paragraph
(iii) [(C)]  an exchange in which property
is transferred but the seller retains title as security for payment
(iv) [(D)]  a transaction in which a motor
vehicle is transferred to another person without payment of
consideration, other than a transaction described by Paragraph
(B)(ii) [and that does not qualify as a gift under Section 152.025];
(v) [(E)]  any other closed transaction that
(i)  the even exchange of two motor
(ii)  the gift of a motor vehicle.
(2)  "Retail sale" means a sale of a motor vehicle
(A)  the sale of a new motor vehicle in which the
purchaser is a franchised dealer who is authorized by law and by
franchise agreement to offer the vehicle for sale as a new motor
vehicle and who acquires the vehicle either for the exclusive
purpose of sale in the manner provided by law or for purposes
allowed under Chapter 503, Transportation Code;
(B)  the sale of a vehicle other than a new motor
vehicle in which the purchaser is a dealer who holds a dealer's
general distinguishing number issued under Chapter 503,
Transportation Code, and who acquires the vehicle either for the
exclusive purpose of resale in the manner provided by law or for
purposes allowed under Chapter 503, Transportation Code;
(C)  the sale to a franchised dealer of a new motor
vehicle removed from the franchised dealer's inventory for the
purpose of entering into a contract to lease the vehicle to another
person if, immediately after executing the lease contract, the
franchised dealer transfers title of the vehicle and assigns the
lease contract to the lessor of the vehicle; [or]
(D)  the sale of a new motor vehicle in which the
purchaser is a manufacturer or distributor as those terms are
defined by Section 2301.002, Occupations Code, who acquires the
motor vehicle either for the exclusive purpose of sale in the manner
provided by law or for purposes allowed under Section 503.064,
(E)  the sale of a used motor vehicle from one
individual to another individual, provided that the sale takes
place in this state and the seller is not acting as a motor vehicle
dealer under Subchapter B, Chapter 503, Transportation Code, in
SECTION 2.  Section 152.041(a), Tax Code, is amended to read
(a)  The tax assessor-collector of the county in which an
application for registration or for a Texas certificate of title is
made shall collect taxes imposed by this chapter[, subject to
Section 152.0412,] unless another person is required by this
SECTION 3.  Sections 152.062(b) and (c), Tax Code, are
(b)  The statement must be [in the following form:
[(1)  if a motor vehicle is sold, the seller and
purchaser shall make] a joint statement by the seller and purchaser
of the then value in dollars of the total consideration for the
[(2)  if the ownership of a motor vehicle is
transferred as the result of an even exchange, the principal
parties shall make a joint statement describing the nature of the
[(3)  if the ownership of a motor vehicle is
transferred as the result of a gift, the principal parties shall
make a joint statement describing the nature of the transaction and
the relationship between the principal parties].
(c)  If a party to a sale[, even exchange, or gift] is a
corporation, the president, vice-president, secretary, manager, or
other authorized officer of the corporation shall make the
SECTION 4.  The following provisions of the Tax Code are
(5)  Sections 152.062(b-1) and (b-2); and
SECTION 5.  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 6.  This Act takes effect September 1, 2025.