Vote Recommendation Notes
Sales of new motor vehicles to a franchised dealer for resale or attachment of dealer's or manufacturer's license plates, sales of vehicles other than new motor vehicles to a dealer for resale or attachment of dealer's or manufacturer's license plates, or sales to a franchised dealer of a new motor vehicle removed from the franchised dealer's inventory for lease, are already excluded from the State motor vehicle sales tax under Chapter 152 of the Tax Code.
Senate Bill 1125 would add to this list the cases of new motor vehicles sold between a manufacturer's own divisions, or to a distributor, for resale or attachment of manufacturer's license plates.
As a consequence, Senate Bill 1125 would foster a limited government by making sure that, in such sales cases, there is no instance of double taxation, since the sales tax is to be applied only to the final, retail sale. We support Senate Bill 1125.