2011 Senate Bill 127

Vehicle trade-in “sales tax on the difference” only

Introduced in the Senate

Feb. 9, 2011

Introduced by Sen. David Robertson (R-26)

To exempt from sales tax the value of a trade-in on the purchase of a new motor vehicle or titled watercraft. The buyer would only pay tax on the difference between the value of the trade-in and the purchase price of the new item.

Referred to the Committee on Finance

March 3, 2011

Reported without amendment

With the recommendation that the bill pass.

May 15, 2012

Substitute offered

To phase-in the tax cut in biannual installments through the end of 2017.

The substitute passed by voice vote

Passed in the Senate 37 to 1 (details)

To exempt from sales tax the value of a trade-in on the purchase of a new motor vehicle or titled watercraft. The buyer would only pay tax on the difference between the value of the trade-in and the purchase price of the new item. The tax cut would be phased in biannual installments through the end of 2017.

Received in the House

May 16, 2012

Referred to the Committee on Tax Policy

Nov. 27, 2012

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.