This bill proposes a 50 percent reduction in the sales and use tax rate on the retail sale of used motor vehicles, which includes passenger motor vehicles, motorcycles, motor homes, and off-road vehicles. The reduced tax rate will apply to all types of sales, including private, casual, and those conducted by motor vehicle dealers. Specifically, the bill states that the sales and use tax imposed under the "Sales and Use Tax Act" will be exempt to the extent of 50 percent, resulting in a new effective tax rate of 3.3125 percent on the receipts from these sales.

The definition of a "used motor vehicle" is clarified in the bill as any vehicle whose title or possession has been transferred from the original purchaser from the manufacturer or dealer, thus categorizing it as "secondhand." This legislation aims to alleviate the financial burden on consumers purchasing used vehicles by significantly lowering the tax rate, thereby encouraging more transactions in the used vehicle market. The act is set to take effect on the first day of the second month following its enactment.