Bill Caption

Relating to methods to enhance the enforcement of the collection of the use tax due on certain off-highway vehicles purchased outside this state; providing a civil penalty.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB1543, Committee Report 1st House, Substituted: a positive impact of $9,329,000 through the biennium ending August 31, 2021.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

HB 1543 would require manufacturers of off-highway vehicles to submit an annual report to the Comptroller listing each warranty issued by the manufacturer for a new off-highway vehicle that was sold to a resident of the state by a retailer located outside this state.  The report would be required to include such information as VIN, make model and year, name and address of purchaser and sales price.  The Comptroller would then be required to verify that there are no unpaid taxes on the purchase. 

Lastly, the bill would stipulate that a purchaser of certain off-highway vehicles purchased from outside the state could not receive a certificate or title receipt until they have submitted evidence that they have paid the required taxes on the vehicle.

Vote Recommendation Notes

While we were originally opposed to HB 1543, we have moved to neutral upon reconsideration. Regardless of our view of taxes imposed on the purchase of vehicles, we recognize that the state has an interest in ensuring that people do not circumvent the tax law by purchasing these vehicles in other states where they are not charged a tax.