This bill changes the method of computing the excise tax that is levied on motor vehicles, special mobile equipment and camper trailers registered in the State. With the exception of certain commercial motor vehicles, buses and special mobile equipment, current law requires that the excise tax be based upon the maker's list price for the motor vehicle; the excise tax on certain commercial motor vehicles, buses and special mobile equipment is based on the purchase price. This bill requires that the excise tax for all motor vehicles, special mobile equipment and camper trailers be based upon the purchase price of the vehicle, equipment or trailer. Either the original bill of sale or the state sales tax document may be used to verify the purchase price. Current law also requires the State to reimburse a municipality for the difference in the amount of excise tax that would have been collected by the municipality on each commercial motor vehicle or bus using the manufacturer's suggested retail price instead of the actual purchase price. This bill applies that requirement to all vehicles registered and taxed by the municipality using the actual purchase price.

Statutes affected:
Bill Text LD 1381, SP 546: 29-A.533, 36.1482