Senate Bill 304 - Summary

• Provides a sales and use tax exemption for purchases or leases of new qualified plug-in electric vehicles for retail transactions occurring July 1, 2011 through December 31, 2016.

• Limits the exemption to a maximum of $1,000 of sales tax liability per vehicle.

• Restricts exemption eligibility to one vehicle per individual and ten vehicles per business entity during the specified period.

• Defines a qualified plug-in electric vehicle as a manufacturer-produced vehicle with at least 8,500 pounds unloaded gross vehicle weight, minimum 55 mph capability, and an electric motor powered by a rechargeable battery with at least 4 kilowatt hours capacity.

• Requires retail merchants to apply the exemption at the time of purchase or lease if the taxpayer qualifies, with taxpayer and merchant submitting required documentation to the department.