CS/HB 429 - Sales Tax Absorption

• Authorizes dealers to advertise or hold out to the public that they will pay sales tax on behalf of purchasers, subject to two specific conditions.

• Requires dealers who absorb tax to expressly state on sales receipts that the dealer will pay the tax to the state and may not indicate the transaction is exempt from tax.

• Requires dealers to separately state the sale price and tax amount on all receipts, in accordance with existing law.

• Violations constitute a second-degree misdemeanor, with second or subsequent offenses elevated to first-degree misdemeanor.

• Establishes penalties for dealers who fail to remit taxes collected or paid on behalf of purchasers, ranging from second-degree misdemeanor (less than $1,000) to first-degree felony ($100,000 or more).

• Effective date: July 1, 2020.