COLLECTION OF SALES TAX BY MOTOR VEHICLE DEALERS (Sections 144.020 and 144.070)

This act provides that following development of the Department of Revenue's modernized system for vehicle titling and registration, driver licensing, and liens, licensed motor vehicle dealers shall collect and remit to the Department the sales tax due on all motor vehicles the dealer sells.

These provisions are identical to provisions in the truly agreed to and finally passed HCS/SS/SCS/SB 398 (2023), provisions in CCS/HCS/SB 47 (2023), provisions in HCS/SS/SCS/SBs 56 & 61 (2023), provisions in SCS/HB 415 (2023), and provisions in HCS/SS/SB 23 (2023), and similar to provisions in SB 66 (2023), HB 1733 (2022), provisions in SS/SB 762 (2022), SB 967 (2022), SB 720 (2022), HB 1873 (2022), HB 2740 (2022), SB 273 (2021), HB 235 (2021), HB 668 (2021), HB 1598 (2020), HB 2740 (2022), HB 809 (2021), HB 599 (2021), and HB 667 (2021).

MOTOR VEHICLE INSPECTIONS (Section 307.380)

Current law requires used motor vehicles to undergo a safety inspection prior to sale and registration. This act specifies that the inspections shall be obtained no more than 60 days prior to the date of sale, and exempts from the inspection requirement motor vehicles having less than 40,000 miles, for the 3-year period following their model year of manufacture. Sellers shall present the certificate of inspection and approval at the point of sale, and the buyer shall submit the certificate of inspection when registering the vehicle.

These provisions are identical to provisions in HCS/HB 443 (2023), and provisions in HCS/HB 207 (2023), and similar to provisions in SB 456 (2023).

MOTOR VEHICLE FRANCHISE PRACTICES ACT (Sections 407.812 and 407.828)

This act prohibits certain entities from engaging in the business of selling motor vehicles, except as permitted by the Motor Vehicle Franchise Practices Act ("MVFP Act"), and specifies parties that shall have standing to enforce the prohibitions. (Section 407.812).

The act also modifies provisions applicable to warranty services. Under the act, compensation for the services is based on rates charged by the franchisee rather than on rates charged by comparable franchisees in the market. (Section 407.828.1-3). Claims not disapproved by the franchisor in writing within 30 days shall be considered approved and paid within 15 days, rather than within 10 days. (Section 407.828.6). The act exempts certain part assemblies from the requirement that franchisors compensate franchisees for recall work in the same manner as warranty work. (Section 407.828.8).

Lastly, the act specifies procedures for franchisees to file complaints with the Administrative Hearing Commission. Franchisees may file claims within 60 days, rather than 30 days, after receiving an adverse decision on a claim under the act. Franchisors shall file an answer to the complaint within 30 days, and a hearing shall be held within 60 days of the franchisee's answer. If the Administrative Hearing Commission finds a franchisor has violated the requirements of the warranty statute, the franchisor shall compensate the franchisee as required by law. (Section 407.828.12).

These provisions are similar to provisions in the truly agreed to and finally passed HCS/SS/SCS/SB 398 (2023), provisions in HCS/SS/SB 23 (2023), and provisions in HCS/SS/SCS/SBs 56 & 61 (2023).

ERIC VANDER WEERD