A House bill would let consumers roll the sales tax on vehicle purchases into their financing package. And it would make dealers who opt into the service a one-stop shop for licensing that new car.
This bill is designed to help out the consumer — so says the bill’s sponsor, Representative Tim Jones.
Jones says this is an opt-in bill, meaning smaller dealers could choose not to offer the service.
Still, smaller auto and marine dealers were at the committee hearing to oppose the bill, saying this would hurt their businesses, which are already struggling in a soft economy. They say it would either force them to lose business … or pay more than they could afford to offer the service.
The Missouri Bankers Association is backing the legislation. And the Missouri Auto Dealers Association supports the bill, saying the current system is quickly becoming outmoded. That organization says Missouri’s one of only four states that do not offer this option to consumers and dealers. It also says the computer systems that track such data for the state are virtually infallable.
Jones says his bill makes the process easier for consumers, but would also help the state by keeping customers from car shopping in Illinois, Iowa or Kansas.
BILL SUMMARY:
This bill allows motor vehicle and boat dealers to act as fee agents for the Department of Revenue to register and license motor vehicles and trailers; to title and register boats, vessels, and outboard motors; and to collect sales and use taxes on motor vehicles and boats at the time of the initial sale or lease. Any dealer who elects to collect the sales and use tax must file a return and remit the tax collected, less a 2% timely filing deduction, to the Department of Revenue. Penalties will be imposed for late filing, and the department can electronically survey all motor vehicle dealer accounts to determine if payments have been timely remitted. The sales tax imposed on a used vehicle, trailer, boat, or motor will be at least 80% of the average trade-in value as determined by the current volume of the National Automobile Dealers Association’s Official Used Car Guide, Central Edition, regardless of the purchase price.
Jessica Machetta reports [Download/listen MP3]
