Staff Analysis of the Legislation
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This bill makes substantial revisions to state and local title ad valorem tax. These revisions include: - Establishes the trade-in value of a used vehicle at the department of revenue book value to prevent inflating trade-ins to reduce TAVT;
- Defines the taxable value of a kit car;
- Clarifies when a tax commissioner may deviate from the defined taxable value;
- Provides for a new trade-in credit for leased vehicles;
- Requires the Department of Revenue to promulgate a standardized bill of sale;
- Requires used vehicle dealers to file the title work and TAVT on behalf of their customer;
- Specifies a county administrative fee of 1% on TAVT collected for cities and the school system;
- Increases the penalty for failing to title and register a vehicle from a misdemeanor to a misdemeanor of a high and aggravated nature;
- Authorizes the transfer of a vehicle through a divorce decree or court order to be treated as a family transfer;
- Clarifies that a motor vehicle dealer can apply for a refund on behalf of a purchaser and must pay the refund to the purchaser within 10 days of receipt;
- Extends the expiration date of a temporary tag to 45 days and authorizes a 30 day extension when a title is delayed due to the failure of a security interest or line holder to timely release the security interest or lien;
- Clarifies electronic title registrations must be filed with the county instead of the Department of Revenue
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