Bill > H5395

This bill modifies existing state law regarding motor vehicle registration and sales tax by adding a new provision that allows taxpayers to dispute the valuation of a motor vehicle used to calculate sales tax. Currently, when registering a vehicle, individuals must provide proof of tax payment based on either the National Automotive Dealers Association (NADA) Clean Retail book value or the sales price, whichever is higher. The new provision gives taxpayers the right to challenge this valuation through a formal hearing process. The tax administrator will be required to develop and implement rules and regulations that govern this appeals process, providing vehicle owners with a mechanism to potentially reduce their sales tax liability if they believe the assigned vehicle value is inaccurate. The bill will take effect immediately upon its passage, meaning the new appeals option will be available as soon as the bill becomes law.

Budget and Finance

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