Bill > SB5663

This bill clarifies the tax treatment of abandoned vehicles sold at auctions conducted by registered tow truck operators. It specifies that the gross proceeds from these sales are subject to the state's business and occupation (B&O) tax as sales of tangible personal property, rather than as the sale of automobile towing and storage services. The bill also requires registered tow truck operators to collect applicable retail sales tax when selling abandoned vehicles at public auctions or to licensed vehicle wreckers, hulk haulers, or scrap processors. The bill provides that licensed auto wreckers, scrap processors, and hulk haulers generally make wholesale purchases of these vehicles and would not owe sales tax on the acquisitions. The bill takes effect on January 1, 2025.