Relating to an exemption from certain taxes imposed on the transfer of a motor vehicle to a person from a decedent or the decedent's estate, the official text

S.B. No. 2064

AN ACT

relating to an exemption from certain taxes imposed on the transfer

of a motor vehicle to a person from a decedent or the decedent's

estate.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 152.025(a), Tax Code, is amended to read

as follows:

(a) A tax is imposed on the recipient of a gift of a motor

vehicle. This section applies only if the person receiving the

motor vehicle:

(1) receives the vehicle from:

(A) the person's:

(i) spouse;

(ii) parent or stepparent;

(iii) grandparent or grandchild;

(iv) child or stepchild;

(v) sibling; or

(vi) guardian;

(B) [a decedent's estate;

[(C)] a trust subject to the Texas Trust Code

(Subtitle B, Title 9, Property Code) that was revocable by a

decedent or that was jointly revocable by a decedent and the

decedent's spouse; or

(C) [(D)] a trust subject to the Texas Trust Code

that is revocable by the person receiving the motor vehicle or that

is jointly revocable by the recipient and the recipient's spouse;

(2) is a trust subject to the Texas Trust Code that is

revocable by the transferor of the motor vehicle or that is jointly

revocable by the transferor and the transferor's spouse; or

(3) is exempt from federal income taxation under

Section 501(a), Internal Revenue Code of 1986, by being listed as an

exempt organization under Section 501(c)(3) of that code, and the

vehicle will be used for the purposes of the organization.

SECTION 2. Section 152.062(b-2), Tax Code, is amended to

read as follows:

(b-2) A joint statement required by Subsection (b)(3) that

relates to a gift from a person [or estate] described by Section

152.025(a)(1) must be filed in person by the recipient of the gift

or, as applicable, the person from whom the gift is received [or a

person authorized to act on behalf of the estate from which the gift

is received]. A motor vehicle title service required to be licensed

under Chapter 520, Transportation Code, may not be used to file the

statement. The person who files the statement must present to the

tax assessor-collector an unexpired identification document issued

to the person that bears the person's photograph and is:

(1) a driver's license or personal identification card

issued by this state or another state of the United States;

(2) an original United States passport or an original

passport issued by a foreign country;

(3) an identification card or similar form of

identification issued by the Texas Department of Criminal Justice;

(4) a United States military identification card; or

(5) an identification card or document issued by the

United States Department of Homeland Security or United States

Citizenship and Immigration Services.

SECTION 3. Subchapter E, Chapter 152, Tax Code, is amended

by adding Section 152.094 to read as follows:

Sec. 152.094. MOTOR VEHICLE TRANSFERRED FROM DECEDENT. (a)

In this section:

(1) "Distributee" has the meaning assigned by Section

22.010, Estates Code.

(2) "Estate" has the meaning assigned by Section

22.012, Estates Code.

(b) The taxes imposed by this chapter do not apply to the

transfer of a motor vehicle:

(1) from an estate to a distributee; or

(2) under a rights of survivorship agreement described

by Section 501.031, Transportation Code.

SECTION 4. This Act applies only to a transfer of a motor

vehicle that occurs on or after the effective date of this Act.

SECTION 5. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 2064 passed the Senate on

April 9, 2025, by the following vote: Yeas 30, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2064 passed the House on

May 23, 2025, by the following vote: Yeas 139, Nays 0, one

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor