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Senate Transportation presses for fix to trailer and chassis purchase-tax loophole
Summary
Lawmakers, dealers and DMV debated draft language to close a perceived loophole that lets buyers claim a vehicle is 'heavy' at purchase but later register it as 'light,' shifting tax treatment. Committee asked parties for agreed language by the next day; no vote was taken.
Senate Transportation members on Thursday aired competing views on proposed changes to vehicle-purchase tax language that dealers say has unintentionally penalized businesses that buy “cab chassis” and later upfit them for work.
Pat Cotto, a dealer representative, told the committee the bill contains two main issues: how the statute defines “trailer coaches” (vehicles that can be lived in or used like motor homes) and how the purchase tax cap is applied to vehicles such as cab chassis. Cotto said those trailer coaches historically paid a capped tax — “if they're over $41,400, their tax has only been $2,486” — but under the…
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