H.B. No. 4300 proposes amendments to the Texas Tax Code regarding the exemption of certain motor vehicle transactions from sales and use taxes. The bill redefines "sale" to include various forms of transactions, such as installment sales and exchanges, while explicitly excluding the even exchange of two motor vehicles and the gift of a motor vehicle from being classified as a sale. Additionally, the definition of "retail sale" is expanded to include the sale of used motor vehicles between individuals, provided the seller is not acting as a dealer. The bill also modifies the requirements for joint statements related to vehicle transactions, removing previous stipulations for even exchanges and gifts.

Furthermore, the bill repeals several sections of the Tax Code that are deemed unnecessary or redundant, including provisions related to the collection of taxes and the requirements for statements in vehicle transactions. It clarifies that the changes made by this Act will not affect tax liabilities that accrued before its effective date of September 1, 2025, ensuring that previous laws remain in effect for the collection and enforcement of those taxes.

Statutes affected:
Introduced: Tax Code 152.001, Tax Code 152.041, Tax Code 152.062 (Tax Code 152)