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 the terms "Sale" and "Retail sale" to clarify that certain transactions, such as the even exchange of two motor vehicles and the gifting of a motor vehicle, are not subject to sales tax. Additionally, it introduces new language to specify that a retail sale does not include the sale of a used motor vehicle between individuals, provided the seller is not acting as a dealer. The bill also modifies the requirements for joint statements made during vehicle transactions, removing previous stipulations related to gifts and exchanges.

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 nature of transactions. It ensures that any tax liabilities incurred before the effective date of the Act remain enforceable under the previous law. The changes are set to take effect on September 1, 2025.

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