2009 House Bill 4702

Refund sales tax paid on new vehicle purchase

Introduced in the House

March 25, 2009

Introduced by Rep. Hugh Crawford (R-38)

To authorize a refundable income tax credit for sales tax paid on a new vehicle purchased in 2009 and 2010. Most sales tax goes to schools, and most income tax goes to the state general fund, so using an income tax credit rather than just exempting new vehicles from sales tax shift the foregone revenue from the school aid fund to the general fund.

Referred to the Committee on Tax Policy