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SB 363 - This act allows the Department of Revenue to appoint motor vehicle and boat dealers to act as agents for purpose of registering and licensing motor vehicles, titling and registering boats and collecting motor vehicle sales and use taxes. Beginning January 1, 2012, any boat or motor vehicle dealer may collect and remit sales and use tax on the motor vehicles or boats it sells at the time of sale. The motor vehicle dealer or boat dealer may retain 2% of the sales tax (Section 144.145). Under current law, a person who sells a motor vehicle may deduct the sales price of such vehicle from the sales price of a subsequently purchased vehicle for purposes of paying motor vehicle sales tax provided the vehicle is purchased within six months of the date of sale. This act modifies this particular trade-in credit rule by requiring the director to impose a tax on the sales price of the subsequent vehicle of no less than 80% of the vehicle's value (Section 144.025). The act explicitly provides that for purposes of paying sales taxes on motor vehicles, trailers, and boats, in nonretail transactions, the purchase prices shall mean not less than 80% of the vehicle's value. For retail transactions, the purchase price of a vehicle shall mean the total amount of the contract price agreed upon between the seller and buyer (Section 144.070). The act also creates new penalties (monetary and suspension of business licenses) for failing to remit sales taxes to the Department of Revenue in a timely manner (Section 144.080). The act requires the Department of Revenue to issue a credit on the next quarterly tax remittance to any seller for any amounts remitted for satisfying and returning any tax obligation on behalf of a purchaser causing a credit card reversal or presenting insufficient monetary instruments for tax imposed (Section 144.080). Under current law, refunds made to purchasers who return items to sellers may be deducted from the seller's gross receipts return that it files with the Department of Revenue provided the seller has returned to the purchaser all tax previously paid. Under this act, sellers who are motor vehicle dealers or financial institutions that finance sales, and the personal property or motor vehicle is repossessed, do not have to return tax previously paid by the purchaser in order to obtain the gross receipts deduction (Section 144.130). STEPHEN WITTE
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