Texas HB5250 allows refunds of motor vehicle sales taxes on certain bad debts.

Texas HB5250 amends the Tax Code to allow sellers and lenders to claim refunds for sales taxes paid on bad debts from retail installment transactions. A "bad debt" is defined as the unpaid balance of an account charged off for federal income tax purposes. To qualify for a refund, the tax must have been remitted on a passenger car sold in a retail installment transaction, the account must be deemed worthless, and it must be written off as a bad debt on the accounting books and charged off for federal tax purposes.

Texas HB5250 allows refunds of motor vehicle sales taxes on certain bad debts.

Texas HB5250 amends the Tax Code to allow sellers and lenders to claim refunds for sales taxes paid on bad debts from retail installment transactions. A "bad debt" is defined as the unpaid balance of an account charged off for federal income tax purposes. To qualify for a refund, the tax must have been remitted on a passenger car sold in a retail installment transaction, the account must be deemed worthless, and it must be written off as a bad debt on the accounting books and charged off for federal tax purposes.