Returned motor vehicles under warranty

From the 2024 DOR Tax Exemption Study

82.32.065 - Returned motor vehicles under warranty Description The department will credit or refund to the manufacturers the amount of the tax refunded for returns of a new motor vehicle under the "Lemon Law." Purpose Assures that manufacturers are not financially responsible for refunded sales tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.052 $0.052 $0.052 $0.052 Local Taxes $0.023 $0.023 $0.023 $0.023 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.048 $0.052 $0.052 Local Taxes $0.000 $0.021 $0.023 $0.023 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Zero growth rate due to irregular annual impact. - Local revenue estimates use the statewide average local sales and use tax rate of 2.92%. Data Sources - Attorney General Office, Consumer Protection data Additional Additional Information Information Category: Business Year Enacted: 1987 Primary Beneficiaries: Manufacturers and purchasers of new motor vehicles that are found to be defective Taxpayer