Bill Caption

Relating to the penalty for failing to file or failing to timely file a Dealer’s Motor Vehicle Inventory Tax Statement.

Fiscal Notes

No fiscal implication to the State is anticipated. 

Bill Analysis

Currently, motor vehicle dealer's are required to report their inventory by the tenth day of each month. There is a $100 per day penalty for late filings and a $500 per month penalty for failing to file or failing to timely file.

HB 3225 would allow the appropriate tax collector to impose a penalty for failure to file or timely file, rather than require that a dealer pay the penalty. It would also reduce the amount of the penalty for each month that a Vehicle Inventory Statement is not filed or timely filed from $500 to $100.

Vote Recommendation Notes

Texas Action supports HB 3225 for promoting limited government principles. This change would increase balance and fairness by allowing tax assessor-collectors to consider the surrounding conditions and intent, particularly in regard to small businesses who may be disproportionately affected and required to pay penalties that exceed the actual amount of tax owed.