HB 4149 Summary

• Amends the definition of "purchase price" in the Use Tax Act to clarify what costs are included and excluded from the tax base for calculating use tax liability.

• Establishes a $2,000 cap on trade-in value credits for motor vehicles and recreational vehicles from December 15, 2013 through December 31, 2014, increasing to $5,000 beginning January 1, 2015.

• Increases the motor vehicle trade-in cap by $1,000 annually each January 1 beginning January 1, 2016, until the amount exceeds $14,000, at which point there is no limitation on the trade-in value.

• Adds provisions allowing excluded consideration from third parties (coupons, group discounts, preferred pricing) from purchase price calculations when properly documented and identified on invoices.

• Adds definitions for new terms including "watercraft dealer," "recreational vehicle," "new motor vehicle," "convert," "diesel fuel," "qualified commercial motor vehicle," and "interstate motor carrier" as they apply to use tax purposes.