Dayton Rep. Taylor Pushes to Cut Taxes on Car Sales

By Beacon Staff

Dayton Republican Janna Taylor, vice chair of the House Appropriations Committee, has introduced a bill that would do away with the tax on a vehicle when it’s sold for the second time in a year. Taylor’s bill creates a year-long registration period for the vehicles, and allows the owner’s original tax payment to cover the whole year, essentially cleaning up one of those weird tax loopholes in state law you wouldn’t even know existed unless you happened to buy a car that had been previously sold that same tax year.

From the press release:

HELENA—Today Representative Janna Taylor (R-House District 11) called on members of the House Transportation Committee to support House Bill 187 in executive action on Monday. The bill eases the tax burden on car buyers.

Taylor said, “Times are tough economically. We need to ease the burden on as many people as we can.”

The bill corrects a situation in law that allows the government to collect taxes twice in the same year on the same vehicle. When a private individual pays the taxes on a vehicle and then sells it in the same year, the new buyer must pay taxes again. HB187 changes the law to let the original owners tax payment cover the whole year no matter who owns the vehicle.

Taylor said, “It’s just not right, the way the law stands now. The taxes are paid on a car, and then two months later the taxes have to be paid again? We’re fixing that problem. One year, one car, one tax bill. Period.”

The bill would create year-long registration periods for vehicles, and place a vehicle into one of those periods when its taxes are paid. The taxes are then current for the whole registration period, and need not be paid again until the period expires one year after the taxes were first paid.

Taylor said, “This is a stimulus package for the people. It’s simple: if you’re going to buy a car this year, this bill is $100 or more directly into your pocket.”