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House extends dealership trade-in tax benefit to private vehicle sales
Summary
First substitute HB293 allows private sellers to claim the same sales-tax offset that buyers get at dealerships when they replace a vehicle within 30 days; sponsors said it levels the playing field and the House passed it.
First substitute House Bill 293, approved by the Utah House on Feb. 20, would allow private sellers of vehicles to receive a sales-tax offset comparable to trade-in treatment at dealerships when they purchase a replacement vehicle within 30 days.
Representative Jordan Tuscher, sponsor, said the statute aligns tax treatment between dealership transactions and private sales. Under current practice, trade-ins at dealerships are taxed on the net difference between purchase and trade-in value; private sellers who separately sell and buy vehicles now face sales tax on the full purchase. Tuscher said the bill allows individuals who sell and replace vehicles within 30 days to submit paperwork to the Utah State Tax Commission for a rebate that credits the difference.
Supporters said the change encourages honest reporting of private-sale values and may increase transactions in the private market. The House adopted the first substitute and the clerk recorded passage at 68-0 in the transcript; sponsors said the tax commission and Division of Motor Vehicles would handle outreach and implementation guidance.
The bill includes a fiscal note; sponsors argued revenue impacts could be offset by improved compliance and transaction volumes but said the Tax Commission will provide implementation details if the bill is enacted.
