HB5395 Summary

• Amends the Motor Vehicle Franchise Act to impose a 20-year tax payment obligation on manufacturers that exercise a right of first refusal to terminate a dealership on or after January 1, 2022.

• Requires manufacturers to pay the municipality or county where a terminated dealership was located an annual amount equal to the dealership's highest local retailers' occupation tax payment from the 5 years prior to termination, but only if the dealership paid at least 10% of local retail taxes in the prior year.

• Applies only to dealership terminations resulting from the manufacturer's exercise of right of first refusal, in addition to any other amounts otherwise due under the law.

• Effective immediately upon becoming law.