Spe c ia l I nve nto ry PE NAL T I E S F I NE S & MORE - PDF document

6/ 8/ 2020 Spe c ia l I nve nto ry PE NAL T I E S F I NE S & MORE PE NAL T I E S 1 Spe c ia l I nve nto ry T a x Histo ry  T he c e ntra l a ppra isa l distric t (CAD) wa s re spo nsib le to va lue inve nto ry he ld b y a uto mo b ile , he a vy e q uipme nt, ma nufa c ture d ho using a nd ve sse l de a le rs.  T he y did so la rg e ly b y c o unting the inve nto ry the n multiplying the to ta l numb e r b y the a ve ra g e c o st.  T his re q uire d the m to find the c a rs o n Ja nua ry 1st. 2 Histo ry Co ntinue d…  T e xa s Auto mo b ile De a le rs Asso c ia tio n L o b b ie d fo r c ha ng e !  T he re we re se ve ra l pro b le ms with the fo rme r me tho d o f c a lc ula ting inve nto ry suc h a s:  T he ma nufa c ture s wo uld se nd c a rs to De a le rs, a nd the De a le rs ha d no c o ntro l o f ho w ma ny ve hic le s the y wo uld ha ve o n Ja nua ry 1.  So me De a le rs wo uld hide c a rs ma king it unfa ir to tho se who pa id ta xe s o n the ir inve nto ry.  Othe r b usine ss inve nto ry wa s no t c o unte d o n Ja nua ry 1. 3 1

6/ 8/ 2020 Spe c ia l I nve nto ry T a x No w  T e xa s L e g isla ture e na c te d la ws tha t ide ntify Spe c ia l Inve nto ry De a le rs a nd pla c e the b urde n o n tho se De a le rs to pro vide inve nto ry to b o th the Chie f Appra ise r a nd the T a x Asse sso r Co lle c to r.  T he se ne w la ws a re mo re fa ir to the De a le rs, b ut fa ilure no t to pro pe rly a dhe re to the se ne w la ws ha ve stric t a nd he fty pe na ltie s. 4 What is Spe c ial Inve ntor y  Motor Ve hic le Inve ntor y  Pro pe rty T a x Co d e §23.121, §23.122 , §23.123 and § 23.129  Ve sse l a nd Outboa r d Motor Inve ntor y  Pro pe rty T a x Co d e §23.124 , §23.125 , a nd §23.126  He a vy E quipme nt Inve ntor y Pro pe rty T a x Co d e §23.1241 , §23.1242 , §23.1243 and § 23.129   Ma nufa c tur ed Housing Re ta ile r s  Pro pe rty T a x Co d e §23.123 , §23.127 , §23.128 and § 23.129 5 Who F ile s Spe c ial Inve ntor y  Motor Ve hic le Inve ntory 23.121(a )(3)  “De a le r” me a ns a pe rso n who ho lds a de a le r’ s g e ne ra l disting uishing numb e r issue d b y the T e xa s De pa rtme nt o f Mo to r Ve hic le s…  y 23.124(a )(3) Ve sse l and Outboar d Motor Inve ntor  “De a le r” me a ns a pe rso n who ho lds a de a le r’ s a nd ma nufa c ture r’ s numb e r issue d b y the Pa rks a nd Wildlife De pa rtme nt…  He avy E quipme nt Inve ntor y 23.1241(a )(1) “De a le r” me a ns a pe rso n e ng a g e d in the b usine ss…o f se lling ,  le a sing , o r re nting he a vy e q uipme nt.  Manufac tur e d Housing R e taile r s 23.127(a )(1)  Re ta ile r (de fine d b y 1201.003 o c c upa tio n c o de ) a s a pe rso n who :  …is e ng a g e d in the b usine ss o f b uying fo r re sa le , se lling , o r e xc ha ng ing ma nufa c ture d ho me s o r o ffe ring ma nufa c ture d ho me s fo r sa le o r e xc ha ng e to c o nsume rs, inc luding a pe rso n who ma intains a lo c a tio n fo r the displa y o f ma nufa c ture d ho me s; a nd (B) se lls o r e xc ha ng e s a t le a st two ma nufa c ture d ho me s to c o nsume rs in a 12-mo nth pe rio d. 6 2

6/ 8/ 2020 Annual De c lar ation  23.121 (f) ... no t la te r tha n F e b rua ry 1 o f e a c h ye ar…e a c h de ale r shall file a de c la ra tio n with the c hie f a ppra ise r a nd file a c o py with the c o lle c to r. T he de c la ra tio n is suffic ie nt to c o mply with this sub se c tio n if it se ts fo rth the fo llo wing info rma tio n: (1) the na me a nd b usine ss a ddre ss o f e a c h lo c a tio n a t whic h the de ale r o wne r  c o nduc ts b usine ss; (2) e a c h o f the de ale r's g e ne ra l disting uishing numb e rs issue d by the T e xa s  De pa rtme nt o f T ra nspo rta tio n;  (3) a sta te me nt tha t the de a le r o wne r is the o wne r o f a de a le r's mo to r ve hic le inve nto ry; a nd  (4) the ma rke t va lue o f the de a le r's mo to r ve hic le inve nto ry fo r the c urre nt ta x ye a r a s c o mpute d unde rSe c tio n 23.121(b ) o f this c o de . Ve sse ls a nd Outboa r d Motor s 23.124, He a vy E quipme nt 23.1241, Ma nufa c tur e d Housing 23.127, Motor Ve hic le s 23.121 7 Annual De c lar ation 50-244 Confidential 8 Monthly State me nt (Monthly R e por t)  23.122 (e ) T he c o mptro lle r sha ll pro mulg ate a fo rm e ntitle d a De a le r's Mo to r Ve hic le I nve nto ry T a x Sta te me nt. E a c h mo nth a de a le r shall c o mple te the fo rm with re spe c t to e ac h mo to r ve hic le so ld. A de a le r ma y use no o the r fo rm fo r that purpo se . T he sta te me nt ma y inc lude the info rma tio n the c o mptro lle r de e ms appro pria te but shall inc lude a t le a st the fo llo wing : (1) a de sc riptio n o f the mo to rve hic le so ld; • (2) the sa le s pric e o f the mo to rve hic le ; • (3) the unit pro pe rty ta x o f the mo to rve hic le if a ny; a nd • (4) the re a so n no unit pro pe rty ta x is a ssig ne d if no unit pro pe rty ta x is • a ssig ne d., Ve hic le s 23.122, He a vy E quipme nt 23.1242, Ma nufa c tur e d Housing 23.128, Motor Ve sse ls a nd Outboa r d Motor s 23.125 9 3

6/ 8/ 2020 Mo nthly Sta te me nt 50-246 Confidential 10 Confide ntial  E xc e pt a s pro vide d b y this se c tio n, a d e c la ra tio n o r sta te me nt file d with a c hie f a ppra ise r o r c o lle c to r a s re q uire d b y Se c tio n 23.121 o r Se c tio n 23.122 o f this c o de is c o nfide ntial a nd no t o pe n to pub lic inspe c tio n…. Applie s to Mo to rVe hic le SIT23.123, a nd Ve sse ls a nd Outb o a rd Mo to rs SIT 23.126 11 Mar ke t Value  Ma rke t va lue is to ta l a nnua l sa le s le ss sa le s to d e a le rs, fle e t tra nsa c tio ns a nd sub se q ue nt sa le s, fro m the de a le r’ s mo to r ve hic le inve nto ry fo r the pre vio us 12- mo nth pe rio d c o rre spo nding to the prio r ta x ye a r divide d b y 12.  E xa mple : $500,000 (Sa le s) / 12 = $41,667 (Ma rke t Va lue )  T o ta l a nnua l sa le s is the to ta l o f the sa le s pric e fro m e ve ry sa le fro m a de a le r’ s mo to r ve hic le inve nto ry fo r a 12-mo nth pe rio d. 12 4

6/ 8/ 2020 Ca lc ula ting Unit Pro pe rty T a x Va lue (“UPT V”)  = the to ta l ta x ra te s fo r a ll ta xing e ntitie s the pro pe rty is sub je c t to a nd divide b y 12 (mo nths) / 100 City o f E l Pa so 0.63300 Ysle ta ISD 1.330000 E l Pa so Co unty 0.338258 E P Co mm Co lle g e 0.105670 Univ. Me dic al Ce n 0.179405 _________ 2.586333 / 12/ 100 = .002155 13 Ca lc ula ting Pre pa yme nt o f SI T T a xe s  Sa le s Pric e x UPT V = T o ta l Unit Pro pe rty T a x  Pre Pa yme nt o f T a xe s  T a xe s a re pre -pa id e a c h mo nth  By the 10th day for all de ale r s e xc e pt He avy E quipme nt De ale r s whic h ar e due by the 20 th .  ***Ple a se no te the re a re no pre pa yme nt o f ta xe s due fo r De a le rs who o pe n the ir do o rs a fte r Ja nua ry 1 until the fo llo wing ye a r. 14 E xa mple :  Mo to r Ve hic le De a le r o pe ns he r do o rs o n Ja nua ry 2, 2018 a nd is issue d a de a le r lic e nse  De a le r must sub mit (to c hie f a ppra ise r a nd c o lle c to r) a n Annua l De c la ra tio n within 30 da ys o f o pe ning b usine ss (23.121(f))  De a le r must sub mit (to c hie f a ppra ise r a nd c o lle c to r) a Sta te me nt b y F e b rua ry 10 (if no c a rs so ld, the n must b e sta te d o n Sta te me nt); (e a c h sub se q ue nt mo nth a Sta te me nt must b e file d b y the 10 th da y o f the mo nth(23.121(f)) ***No ta xe s a re due e a c h mo nth the De a le r wa s  in b usine ss his first ye a r, b ut a mo nthly Sta te me nt must b e file d 15 5

6/ 8/ 2020 E xa mple Co ntinue d:  De a le r must file a ne w De c lara tio n b y F e b rua ry 1, 2019  De a le r’ s ma rke t va lue is de te rmine d b y the Chie f Appra ise r o n Ja nua ry 1, 2019, whic h is c a lc ulate d b y using a nnua l sa le s da ta sub mitte d b y the De a le r fro m the prio r ye a r (23.121(c )).  On o r b e fo re the 10 th da y o f e a c h mo nth a De a le r sha ll file with the c o lle c to r the mo nthly sta te me nt c o ve ring the sa le s fo r the prio r mo nth a nd pre -pa y ta xe s b a se d o n the re po rte d sa le s. (De a le r typic a lly pa sse s this c o st o nto e a c h purc ha se r o f a ve hic le ). 16 E xa mple Co ntinue d:  In Ja nua ry 2020, a fte r the de a le r’ s mo nthly sta te me nt & pre pa yme nt o f ta xe s ha s b e e n re c e ive d fo r the De c e mb e r 2019 sa le s, the c o lle c to r sha ll a pply the e sc ro we d funds to e a c h ta xing unit to pa y the 2019 pro pe rty ta xe s.  If the re is a de fic it, 2019 ta xe s b e c o me de linq ue nt F e b rua ry 1, 2020  Any 2019 o ve ra g e is distrib ute d to ta xing e ntitie s (23.122(k)) 17 De c la ra tio n: Misde me a no rs, F ine s & Pe na ltie s 18 6