Committee seeks to codify appeals process and outreach for purchase-and-use tax assessments

During markup of S.123 the committee considered a provision that would require the DMV commissioner to adopt established procedures for taxpayers to dispute purchase-and-use tax assessments and to produce educational outreach materials explaining appeals.

Committee members and DMV staff said the DMV already has a process for appeals, but the proposed language would explicitly require the agency to maintain procedures and outreach. A committee member explained the intent: the bill would “codify in statute that the commissioner shall establish procedures,” ensuring ongoing availability of an appeals path and public information.

Committee members debated whether the statute should spell out procedural details or simply require the agency to maintain and publish them. Staff cautioned that embedding procedural minutiae in statute can make routine updates difficult; procedures often need to adapt to new technology (for example, electronic filing) without returning to the Legislature.

The committee reviewed the mechanics of appeals in practice. Matt Russo, deputy commissioner, confirmed the current practical route for challenging a purchase-and-use assessment: “for the purchase and use tax, the dealer appraisal is the only way to appeal currently.” Committee members raised concerns that appraisal costs may exceed the disputed tax amount in many private-sale cases, making appeals impractical for small-dollar disputes.

Members agreed to include the codification language in S.123 while noting the committee may return to the topic to consider widening or clarifying acceptable evidence or lowering barriers to appeal.

Ending: The committee added the codification requirement to S.123 but left open follow-up work to explore cost barriers and alternative evidence pathways for private-sale appeals.