House Bill 5805 Summary

• Amends the Use Tax Act to modify the "purchase price" definition for calculating use tax liability on tangible personal property and services.

• Establishes a credit for trade-in value of motor vehicles or recreational vehicles used as part payment for new or used vehicle purchases from licensed dealers, effective December 15, 2013.

• Limits the trade-in credit to $2,000 through December 31, 2014, then increases to $3,500 beginning January 1, 2015, with an additional $500 increase each January 1 thereafter unless a specific social welfare provision is repealed.

• Removes the trade-in credit cap once the maximum amount exceeds $14,000, allowing unlimited trade-in value credits from that point forward.

• Adds similar trade-in credit provisions for titled watercrafts used as part payment for watercraft purchases from watercraft dealers, effective November 15, 2013, without dollar amount limitations.