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Filing Forms Revised
New Laws Refine Motor Vehicle,
Heavy Equipment, Mobile Home Inventory
During its recent session, the 76th Texas Legislature modified the property tax appraisal and collection procedures for motor vehicle, heavy equipment, and retail manufactured housing inventories. House Bill (HB) 3033 addresses several issues in the appraising of motor vehicle inventories. Senate Bills (SB) 521 and 1435 change parts of the heavy equipment inventory law. HB 3197 adds definitions to retail manufactured housing.

"State law requires the Comptroller
to disseminate reporting forms for
special inventories."
State law requires the Comptroller to disseminate the reporting forms for these types of special inventories. With the new law changes, the Comptroller's Property Tax Division (PTD) is amending the current forms to comply with the new laws for tax year 2000. The PTD sent copies of the proposed changes to the inventory forms to county tax assessors and chief appraisers for their comments. Plans are to adopt and distribute the final forms in late November or early December.

See the related chart on amended Comptroller rules in this issue.

Motor vehicle dealers
The forms for motor vehicle dealers include the Dealer's Motor Vehicle Inventory Declaration (Comptroller Form No. 50-244) and the Dealer's Motor Vehicle Inventory Tax Statement. (Comptroller Form No. 50-246). Changes to the dealer's motor vehicle inventory forms include a definition of when a new motor vehicle retail business is started and that the Texas Department of Transportation (TxDOT) has the right to see these two confidential forms.

HB 3033 provides that a motor vehicle dealer is presumed to have commenced doing business on the date of issuance of a dealer's general distinguishing number. A chief appraiser, however, has the discretion to designate a different date. The bill also allows TxDOT access to the confidential dealer information for use in auditing dealer licensee compliance.

Heavy equipment dealers
The forms for heavy equipment dealers include the Dealer's Heavy Equipment Inventory Declaration (Comptroller Form No. 50-265) and the Dealer's Heavy Equipment Inventory Tax Statement (Comptroller Form No. 50-266). Changes to the two forms include the definitions of heavy equipment inventory, type of sale, and sales price.

SB 521 repeals the requirement that the chief appraiser report a dealer who fails to file an annual declaration of heavy equipment inventory or reports fewer than five items sold in the preceding year to the State Comptroller. SB 1435 includes in the definition of "dealer's heavy equipment inventory" items that are leased or rented but subject to a purchase option by the lessee or renter. The definition of "sales price" for a lease or rental with an option to purchase is the total amount of the lease or rental payments plus any final consideration, excluding interest. A sale of heavy equipment is considered to have occurred when possession of a heavy equipment item transfers from the dealer to the purchaser.

Manufactured housing retailers
The forms for mobile home retailers include the Retail Manufactured Housing Inventory Declaration (Comptroller Form No. 50-267) and the Retail Manufactured Housing Inventory Tax Statement (Comptroller Form No. 50-268). Changes to the forms include the definitions of "mobile home" and "HUD manufactured home" and the reference of mobile homes to units.

HB 3197 amended the above definitions to be consistent with definitions in Article 5221f, Vernon Texas Civil Statutes. The bill also provides that a retail manufactured housing dealer is not liable for penalties and interest if the county tax assessor fails to transfer inventory taxes to taxing units before the delinquency date.

Vessel and outboard motor dealers
The two forms for vessel and outboard motor dealers -- the Dealer's Vessel and Outboard Motor Inventory Declaration (Comptroller Form No. 50-259) and the Dealer's Vessel and Outboard Motor Inventory Tax Statement (Comptroller Form No 50-260) -- have no changes

For additional information about these law changes and the amended forms, call the PTD's Technical Assistance Section at 1-800-252-9121. In Austin, call 305-9999.