Connecticut House Bill HB05043

Connecticut 2017 Regular Session

• Introduced: 1/4/17
• Refer: 1/4/17

Caption

An Act Concerning The Sales Tax Calculation On Private Passenger Motor Vehicle Sales Between Private Individuals.

Impact

If enacted, HB 5043 will have a direct impact on the sales tax calculations for individuals selling private passenger vehicles. The amendment to the general statutes allows buyers and sellers to agree on a sale price that is notarized, thereby providing a legal basis for the taxation process. This is particularly important in a market where vehicle sales among individuals can vary greatly based on condition and market demand. With a more straightforward basis for calculating sales taxes, it could lead to more transparent transactions and potentially reduce disputes between buyers and tax authorities regarding the valuation of sold vehicles.

Summary

House Bill 5043 aims to modify the method of calculating sales tax on private passenger motor vehicle sales between private individuals. The bill specifies that the sales tax should be based on the documented and notarized purchase price agreed upon by the two private parties involved in the sale, rather than any other valuation method currently in practice. This change is intended to simplify the sales tax calculation for private vehicle transactions and ensure that both parties benefit from a clear and documented sale price.

Contention

While proponents of the bill argue that it provides clarity and fairness in private vehicle sales, there may be some contention surrounding the potential for tax evasion. Critics could argue that allowing private individuals to document their sale price may lead to undervaluation to decrease tax liabilities. Additionally, concerns might be raised regarding the notarization process itself and whether it could become an unnecessary hurdle for casual transactions. Legislators might debate how to prevent abuse while still facilitating ease of transactions between private parties.