BILL AXES CITY SALES TAX ON ATVs, SOME MOTORCYLES, AND MAYBE GOLF CARTS

A bill that passed the House this week, H.B. 2237 by Rep. Lanham Lyne, would cancel city sales taxes on all-terrain vehicles, off-road motorcycles, and arguably golf carts (the definitions in the bill relating to golf carts are unclear).   The bill reclassifies these items as “motor vehicles” under the Tax Code, meaning the state would continue to collect its full sales taxes as it does on cars and trucks, but cities would lose all their sales taxes on these vehicles.

The rationale given for the bill is that dealerships of these vehicles are allegedly losing sales to neighboring states with lower tax burdens.   Even if this is the case, however, the bill unfairly only targets city sales taxes in order to correct the situation.  Why shouldn’t the state bear the burden as well?

City officials concerned about the loss of these sales taxes should contact their senators right away and urge them to vote against H.B. 2237 (and its companion bill, S.B. 1280 by Estes).


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