Staff Analysis of the Legislation
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This bill lowers the title ad valorem tax (TAVT) rate from 7% to 6.6% from until July 2023, at which the rate would return to 7%. The bill also revises the methodology for calculating TAVT for used cars sold by dealers, with the TAVT to be calculated on the retail sales price (rather than the current lower "book value", which is an average of retail value and wholesale value). This bill provides that the transfer of a motor vehicle between businesses that are at least 50%-owned by the same person would be exempt from paying title ad valorem tax on that transaction, provided that one of such businesses has previously paid TAVT on that vehicle. |