This bill makes substantial revisions to state and local title ad valorem tax. These revisions include:

• Establishes the trade-in value of a used vehicle at the department of revenue book value to prevent inflating trade-ins to reduce TAVT;
• Defines the taxable value of a kit car;
• Clarifies when a tax commissioner may deviate from the defined taxable value;
• Provides for a new trade-in credit for leased vehicles;
• Requires the Department of Revenue to promulgate a standardized bill of sale;
• Requires used vehicle dealers to file the title work and TAVT on behalf of their customer;
• Specifies a county administrative fee of 1% on TAVT collected for cities and the school system;
• Increases the penalty for failing to title and register a vehicle from a misdemeanor to a misdemeanor of a high and aggravated nature;
• Authorizes the transfer of a vehicle through a divorce decree or court order to be treated as a family transfer;
• Clarifies that a motor vehicle dealer can apply for a refund on behalf of a purchaser and must pay the refund to the purchaser within 10 days of receipt;
• Extends the expiration date of a temporary tag to 45 days and authorizes a 30 day extension when a title is delayed due to the failure of a security interest or line holder to timely release the security interest or lien;
• Clarifies electronic title registrations must be filed with the county instead of the Department of Revenue