Bill > HB2016

This bill provides a sales tax exemption on the sale of abandoned vehicles by a registered tow truck driver. The key provisions are: 1. The bill amends the definition of "sale" in the state's tax code to exclude the transfer of ownership of an abandoned vehicle sold by a registered tow truck operator to a successful bidder at public auction or, if there is no successful bidder, to a licensed vehicle wrecker, hulk hauler, or scrap processor. 2. The bill specifies that this sales tax exemption does not apply to the use tax on the consumer's use of the abandoned vehicle or to taxes on automobile towing and storage services provided by the registered tow truck operator. 3. The bill includes a tax preference performance statement, which indicates that the legislature's objective is to allow registered tow truck operators to recoup their expenses associated with removing abandoned vehicles from the roads and highways. The legislature intends to extend the expiration date of this tax preference if a review finds that the average cost of towing, storing, and disposing of an abandoned vehicle exceeds the average revenue from the sale of the vehicle. 4. The bill has an expiration date of January 1, 2030.