HB 2433 Summary

• Reduces the sales tax exemption for motor vehicle sales from full exemption to 1.25% of gross receipts, while maintaining exemption from local sales and use taxes levied by cities, counties, or other jurisdictions.

• Modifies payment responsibility for motor vehicle sales and use taxes to align with when motor vehicle excise tax is due, rather than at point of sale.

• Clarifies that motor vehicle excise tax (Section 2101 et seq.) remains in lieu of other state taxes on vehicle transfers and first registration, with exceptions for registration fees, title fees, and Corporation Commission fees.

• Applies the same 1.25% sales tax rate to motor vehicle use tax provisions under existing exemption frameworks.

• Effective July 1, 2017, with emergency declaration allowing immediate effect upon passage and approval.