Local public safety tax on vehicles

From the 2024 DOR Tax Exemption Study

82.14.450(4) - Local public safety tax on vehicles Description Counties are authorized to levy local sales and use taxes of up to 0.3%. One-third of the receipts must be devoted to criminal justice expenditures. The county retains 60% of the receipts and the remainder is shared with cities on a per capita basis. Sales of motor vehicles are exempt from the local tax. Similarly, motor vehicles leases for the first 36 months of the lease period are also exempt. Purpose The exemption acknowledges that local vehicle dealers will have to compete with dealers located in adjacent areas where the local tax is not levied. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $7.260 $7.330 $7.590 $7.860 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $6.720 $7.590 $7.860 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the new motor vehicle growth rates reflected in the S&P Globa