SB 363 Allows Department of Revenue to appoint motor vehicle dealers to serve as agents for the purpose of collecting and remitting motor vehicle sales and use taxes
Sponsor: Griesheimer
LR Number: 1862S.05P Fiscal Note: 1862-05
Committee: Jobs, Economic Development and Local Government
Last Action: 5/14/2009 - Reported Do Pass H Fiscal Review Committee Journal Page: H2065
Title: SS#2 SCS SB 363 Calendar Position:
Effective Date: August 28, 2009
House Handler: Jones

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Current Bill Summary


SS#2 FOR SCS/SB 363 - Under this act, beginning January 1, 2012, the Department of Revenue may appoint motor vehicle dealers to act as agents for purpose of titling and registering motor vehicles. Motor vehicle dealers are also authorized under the act to collect and remit sales taxes on motor vehicles. The motor vehicle dealer may only act as an agent for these purposes for an initial sale or lease of a motor vehicle and not subsequent registrations (Section 32.095).

The act provides that motor vehicle dealers authorized to act as agents for the department cannot collect the fee office fees authorized by section 136.055.

Beginning July 1, 2010, any motor vehicle dealer may apply to the director of revenue for authority to collect and remit motor vehicle sales taxes on all motor vehicles sold by that motor vehicle dealer. A motor vehicle dealer who is granted the authority to collect motor vehicle sales taxes shall be subject to the sales tax law as contained in Chapter 144 (Section 144.070). Motor vehicle dealers that are authorized to collect and remit motor vehicle sales taxes are entitled to retain 2% of the motor vehicle sales tax. No monies from the general revenue fund or other state fund shall be used to compensate motor vehicle dealers for their role in collecting and remitting motor vehicle sales taxes.

Motor vehicle dealers who collect sales taxes on motor vehicles must include the amount of state and local sales taxes collected on each motor vehicle or trailer sold in its monthly sales report (Section 301.280).

The act also provides that a motor vehicle dealer's license may be suspended or revoked if such dealer violates or assists another person to violate the sales tax law (Chapter 144)(Section 301.562).

This act requires the Director of the Department of Revenue to award fee office contracts through a competitive bidding process with priority given to school districts or coalitions of school districts, charitable organizations, nonprofit organizations, and political subdivisions (Section 136.055). This portion of the act is similar to SB 561 (2009).

The act provides that no public governmental body may close a public meeting or record to the extent that such meeting or record concerns the awarding of a fee office contract (Section 610.031).

Under current law, a taxpayer who trades-in or exchanges a motor vehicle, trailer, boat or outboard motor may subtract the value of such transaction from the purchase price of another motor vehicle, trailer, boat or outboard motor if such sale is consummated within one hundred and eighty days of the sale of the original article. If the value of the original transaction equals or exceeds the sale price, no tax is owed. This act allows taxpayers who trade-in or sell a motor vehicle, trailer, boat, or outboard motor for more than the purchase price of another motor vehicle, trailer, boat or outboard motor to apply any excess to any subsequent purchase of such an article within one hundred and eighty days of the original sale of such article. The act extends the same treatment to items replaced due to theft, casualty, or loss. This portion of the act is similar to SB 49 (2009) and SB 725 (2008) (Section 144.025).

STEPHEN WITTE