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Relating to the filling of certain reports by distributors of certain off-highway vehicles purchased outside this state; providing civil penalties.
Estimated Two-year Net Impact to General Revenue Related Funds for SB 586, As Introduced: a positive impact of $300,000 through the biennium ending August 31, 2023.
SB 586 would require that each off-highway vehicle distributor, in addition to the current requirement placed on manufacturers, file a report with the comptroller no later than March 1st of each year listing each warranty issued for a new off-highway vehicle that was sold to a resident of Texas by a retailer outside of Texas.
SB 586 would place an emphasis on including off-highway vehicle distributors (such as ATV and dirt bike distributors), not just manufacturers, in the statute's reporting requirement. A civil penalty between $25 and $2,000 would be imposed if the report is failed to be filed.
SB 586 would expand the state registry of off-highway vehicle owners by now requiring distributors to file a report with the comptroller's office. Failure to file this report would result in a civil penalty.
Regardless of our view of taxes imposed on the purchase of off-highway 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 or from distributors where they are not charged a tax. As such, Texas Action is neutral on SB 586.