Committee splits on bill to tax used vehicles by bill‑of‑sale price; measure deferred

Representative Tim Goodwin introduced HB1141 to require excise tax on private transfers of used vehicles be based on the amount shown on the bill of sale, subject to affidavit or other documentation, rather than automatic market valuation in some instances.

Motor Vehicle Division Director Rosie Yeager explained current practice: dealers and auctions report sale prices directly; for private sales the division compares the bill‑of‑sale price to a standardized valuation (JD Power in the agency’s system) and triggers follow‑up when bills are significantly below market. Staff can request affidavits, seller confirmation or repair estimates to justify low prices. Yeager warned that shifting to an across‑the‑board reliance on bills of sale could reduce revenue, increase fraud risk, and create administrative burdens for county processors.

The sponsor argued that counties sometimes treat private bills of sale inconsistently and that citizens should not pay tax on a higher ‘blue‑book’ value when the purchase price is documented. He said the attorney general indicated willingness to prosecute false bills of sale. Committee members debated tradeoffs; a substitute motion for a due pass failed on a divided roll call, and the panel voted to defer the bill to the 41st day for further study.

Next steps: HB1141 was deferred; sponsors and agency staff signaled a willingness to pursue compromise or statutory clarifications in future work.

Quote: "A bill of sale is good. It's a felony if you cheat on the bill of sale," sponsor Tim Goodwin said while urging a simpler, standardized approach.