Bill > S0041

This bill expands the existing sales tax exemption for trade-in values of motorcycles to also include proceeds received from an insurance claim for an unrecovered stolen or total loss motorcycle. Specifically, the bill modifies the current law to allow the sales tax exemption to apply when a motorcycle owner receives insurance proceeds for a stolen or totally damaged motorcycle and uses those funds towards purchasing a new motorcycle. The exemption is limited to motorcycles not used for hire and requires that the tax has not already been reimbursed as part of the insurance claim. The bill clarifies that the tax benefit is in lieu of other provisions related to total loss or destruction of a motorcycle. The bill will take effect immediately upon passage, providing motorcycle owners with a tax break when replacing a motorcycle through an insurance claim.

Budget and Finance

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