The House and Senate appear headed toward the negotiating table on a bill that seeks to fix changes in car tax laws adopted a year ago.
The House on Monday sent the latest version of House Bill 266 to the Senate minus a provision that would give so-called “buy here, pay here” car dealers a break on its taxes. The Senate immediately disagreed, and on Tuesday the House is expected to insist on its plan, a move that would trigger a conference committee of three House members and three senators to search for compromise.
The bill would remove a double tax now being imposed on car leases, give car dealers more time to file paperwork and lower tax rates for rental-car companies. The House version, originally included in House Bill 80, passed that body in February, but the Senate abandoned that bill and added much of it to HB 266, which would adjust state tax code to meet new federal guidelines and adjust state tax breaks created last year.
But the Senate also added a provision to benefit the “buy here, pay here” lots by allowing them to pay a lower upfront tax than other car dealers. “Buy here, pay here” lots typically sell cars to customers with bad credit. These dealers finance the sale themselves and typically charge high interest rates. If the buyer defaults, the car is repossessed, and a “buy here, pay here” dealer could sell the same car several times. The current tax would charge them the same title tax every time the car is sold.
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