Amends TCA Title 67, Chapter 6, Part 3.

This bill provides that a person receiving disaster assistance through FEMA for replacement of the person's primary vehicle or secondary vehicle that was damaged or destroyed as a result of a natural disaster occurring on or after July 1, 2024, in this state ("claimant") is entitled to a refund equal to the total amount of Tennessee state and local sales and use tax paid by the claimant to a dealer as a result of the claimant's purchase of another motor vehicle from the dealer ("essential vehicle") to replace the damaged or destroyed vehicle. However, the total amount refunded in connection with any one essential vehicle must not exceed $4,000, and each claimant is limited to one refund claim for one primary vehicle and one refund claim for one secondary vehicle. This bill clarifies that refunds under this bill must be paid from the state's general fund and that this bill does not reduce the amount of sales and use tax payable to local governments.<br /> <br /> PROCESS TO RECEIVE A REFUND<br /> <br /> In order to receive a refund under this bill, the following criteria must be met:<br /> <br /> (1) The claimant must file a claim for refund within one year from the date shown on the FEMA decision letter received by the claimant;<br /> <br /> (2) The essential vehicle for which the refund is claimed must be titled and registered in the name of the claimant, either alone or jointly with a spouse or lineal relative; and<br /> <br /> (3) The claimant must certify on the natural disaster claim for refund form that the purchase for which the refund is claimed was to replace a primary vehicle or secondary vehicle damaged in a federally declared natural disaster occurring on or after July 1, 2024, in this state.<br /> <br /> This bill requires the department of revenue to make the refund directly to the claimant. All natural disaster claims for refund must include satisfactory proof of receipt of federal disaster assistance to replace the claimant's primary vehicle or secondary vehicle, as applicable.<br /> <br /> RECORDKEEPING AND AUDITS<br /> <br /> This bill requires each claimant to keep and preserve suitable records of the purchase for which a refund is claimed pursuant to this bill, including receipts and copies of payment documents such as checks, credit card receipts, or a sworn statement under penalty of perjury to support any purchase made using cash. The records must be kept and preserved for a period of three years from December 31 of the year in which the natural disaster claim for refund was filed. The records must be open to the inspection of the commissioner of revenue, or the duly authorized delegates of the commissioner, at all reasonable hours.<br /> <br /> This bill authorizes the commissioner to conduct audits or require the filing of additional information necessary to substantiate the amount of a refund due to the claimant.<br /> <br /> PENALTIES<br /> <br /> This bill authorizes the department to assess a civil penalty not to exceed $25,000 against a person who knowingly files a false or fraudulent application for refund under this bill. A claimant who is assessed a penalty under this bill is entitled to the remedies provided by existing law.<br />