Amends TCA Title 67.

ON APRIL18, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 867, AS AMENDED.<br /> <br /> AMENDMENT #1 rewrites this bill to revise various provisions of present law relative to credits to dealers, credits to prevent multistate taxations, and credits for the resale of telecommunication services of sales and use taxes. <br /> <br /> Under present law, in the event a dealer must sell any article of personal property on a security agreement or other title retained instrument and the dealer must thereafter be required to repossess or enforce the dealer's lien on the article or personal property at a time when the balance due on the unpaid purchase price must exceed $500, the dealer must be entitled to a credit on the sales tax that the dealer must be required to collect and remit to the commissioner, in an amount equal to the difference between the amount of the sales tax collected and paid at the time of the original purchase and the amount of sales tax that would be owed on that portion of the purchase price that has actually been paid by the purchaser, plus the sales tax on the first $500 of the unpaid balance of the purchase price. The commissioner must issue to the dealer an official credit memorandum equal to the net amount remitted by the dealer for such tax collected. Such memorandum must be accepted by the commissioner at full face value from the dealer to whom it is issued, in the remittance for subsequent taxes accrued under the sales and use taxes; provided, that, in cases where a dealer has retired from business and has filed a final return, a refund of tax may be made, if it can be established to the satisfaction of the commissioner that the tax was not due.<br /> <br /> This amendment adds that the credit authorized by present law is available to a dealer principally selling used automobiles to retail purchasers if the dealer assigned the security agreement or other title retained instrument resulting from the sale to an affiliate finance company occupying the same physical headquarters locations in this state as the dealer and if: <br /> <br /> (1) The dealer collects from its retail purchasers a down payment averaging not more than five percent of the total used automobile sales price; <br /> <br /> (2) The dealer advances from its own funds the sales tax amount on each purchase and remits that tax amount to the commissioner; <br /> <br /> (3) The dealer assigns 100 percent of its security agreements or other title retained instruments solely to the affiliate finance company in exchange for consideration that includes a sum intended to reimburse the dealer for sales tax amounts remitted to the commissioner; <br /> <br /> (4) The dealer remains obligated to and reimburses the finance company for those amounts attributable to sales taxes that the finance company is unable to collect from the retail purchaser; <br /> <br /> (5) The finance company has the right to repossess or enforce any lien as to the subject automobile; and <br /> <br /> (6) As a precondition to the dealer utilizing the credit authorized by present law, the dealer first obtains the commissioner's agreement based on information satisfactory to the commissioner that the dealer and the assignee finance company are affiliates and satisfy the other conditions established by this amendment.<br />