Bill > HB4300

This bill modifies the Texas Tax Code's provisions related to motor vehicle sales and use taxes, primarily focusing on clarifying and exempting certain types of vehicle transactions from taxation. The bill defines "sale" to explicitly exclude even exchanges of two motor vehicles and gifts of motor vehicles, which were previously subject to more complex reporting requirements. It also adds a new exemption for sales of used motor vehicles between individual private parties, provided the sale occurs in Texas and the seller is not acting as a professional motor vehicle dealer. The bill removes several existing sections of the Tax Code related to vehicle sales, including provisions about gifts and specific exchange scenarios. Additionally, the bill simplifies the joint statement requirements for vehicle sales, removing separate provisions for exchanges and gifts. The changes will not affect tax liabilities that accrued before the effective date, which is set for September 1, 2025, ensuring that existing tax obligations remain unchanged. These modifications aim to streamline the process of reporting and taxing vehicle transactions while providing clearer guidelines for different types of vehicle transfers.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4300