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Bill > HB1864


TX HB1864

TX HB1864
Relating to an exemption from the use tax imposed on certain motor vehicles brought into this state by new Texas residents.


summary

Introduced
01/15/2025
In Committee
03/14/2025
Crossed Over
Passed
Dead
06/02/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT relating to an exemption from the use tax imposed on certain motor vehicles brought into this state by new Texas residents.

AI Summary

This bill modifies the Texas Tax Code to provide a specific use tax exemption for new Texas residents who bring a motor vehicle into the state that was previously purchased at retail sale within Texas and on which the original sales tax was already paid. Specifically, under the new provision, if a new resident of Texas moves into the state with a vehicle they originally bought in Texas and already paid sales tax on, they will be exempt from paying an additional use tax when bringing that vehicle into Texas. The bill clarifies that this exemption does not affect any tax liabilities that existed before the law's effective date, which is set for September 1, 2025. This change aims to prevent double taxation on vehicles purchased and initially taxed within Texas when a resident moves within the state, reducing the financial burden on individuals who relocate to Texas.

Committee Categories

Budget and Finance

Sponsors (22)

Last Action

Referred to Ways & Means (on 03/14/2025)

bill text


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