Greetings!
Welcome to the latest installment of IADA's e-news, containing timely updates, information, announcements and reminders. We welcome your suggestions and contributions. For further information and updates regarding the Idaho Automobile Dealers Association please visit our website at www.idahoada.org.
Thank you,
IADA Staff- |
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ECONOMY WATCH
4th QUARTER 2008 IDAHO AUTO OUTLOOK
The Idaho Auto Outlook is now available on the IADA website.
Consumer Tax Incentives in Federal Stimulus Bill IMPORTANT DOCUMENTS: CLICK HERE for a summary of Vehicle Tax Deductions for New Car Purchasers. CLICK HERE for an overview of the major tax provisions for your review and dealership business.
The final federal stimulus bill, signed this week by the President in Denver, included consumer tax incentives for the purchase of new vehicles. The attached summary provides an overview and various clarifications on the application of these new tax incentives.
Advertising: A note of caution on advertising: dealerships are prohibited under Idaho law from advertising that they will pay any tax on behalf of consumers.
Refrain from giving tax / legal advice to consumers: Dealers should ensure that personnel do not offer to calculate the deduction or estimate savings for individual customers; be especially careful that salespersons are not offering tax or legal advice.
Other tax credits: As a reminder, there are also federal tax credits for hybrid vehicles still available on select vehicles. For more information on available credits, visit www.hybridcars.com (under Research / Incentives & Laws). See also http://www.energytaxincentives.org | |
AUTOMOTIVE NEWS AT A GLANCE
Listed here are several articles pertaining to the auto industry that appeared recently in newspapers and other media outlets across the nation.
IADA forwards news articles and opinion columns of interest through THE TRAFFIC REPORT to inform members of current events. These in no way reflect the views, opinions, and/or positions of IADA or its member dealers. They are sent for informational and educational purposes only.
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LEGISLATIVE UPDATES
IDAHO LEGISLATURE
TRANSPORTATION FUNDING
Unfortunately Idaho's portion of the recently signed into law Federal Stimulus Package CANNOT be used for maintenance and operations or to pay down GARVEE debt. However, ALL "shovel-ready" projects are available for this stimulus money. The Governor, with his stimulus team, working with the ITD Board will work towards a finalized list, but as of right now all projects are eligible, not just the eight projects the ITD Board listed as potential projects. Shovel ready GARVEE projects are also eligible for this money.
Concerning the freshly presented OPE Audit, the Governor will address that through executive order. This executive order will set up the "Annual Accountability Report" that ITD will be required to submit including their three year plan to implement the four major findings of the OPE audit. It will also reference the restricted fund that the Governor is setting up in code in his Fuel Tax Bill. All new revenue generated by the rental car tax, increase in fuel tax and increase in registration will go into this account.
This week, Chairman Wood is planning to hold hearings Tuesday on the Governor's ethanol and specialty plate bills, along with three other bills from House members. On Thursday, she is planning on hearing all three fuel tax bills (Governor's, Rep. Leon Smith's and Chairman Woods's) and the hearing will be in the JRW, West Conference Room. ITD has assigned their team to present this legislation and offer technical expertise.
Next week, possibly Mon or Wed, hearings on the ISP shift and registrations should begin as well
CLICK HERE for a full report of the transportation plan.
FRANCHISE TERMINATION BILL
IADA begins work on strengthening your state franchise termination language ( 49-1614). During the 2009 legislative session the IADA will be introducing legislation to increase your position with the manufacturer with regards to possible self termination and the manufacturer termination of franchise agreements. The purpose of this legislation is to provide fair and reasonable compensation by the manufacturer upon the termination, cancellation, nonrenewable or discontinuance of any franchise and to provide a time frame for reimbursement of such compensation. IADA will post the proposed changes for your review as soon as our negotiations with House Leadership and the Auto Alliance have finished. SB 1053 introduced by ITD:
SB 1053 authorizes the collection of full legal names, driver license numbers, SSN's (when they don't have a DL) EIN's, etc for purposes of titling and registration.
* Having the authority to obtain full identification information will help protect consumers/vehicle owners and their vehicle interest and ownership, by ensuring that a vehicle is titled and registered to the rightful legal owner.
* The collection of this information if approved, will allow the department to bring order, standardization and efficiency to the title and registration records of the department.
* This legislation enables ITD to require the collection of owners and businesses identifying information, including full legal name, driver license number, or social security number, or a business' employer identification number. It also enables the department to collect both physical and mailing addresses. These requirements must already be met for anyone who receives an Idaho driver license or identification card.
SERVICE CONTRACT ADVERTISING LANGUAGE
The IADA will also be introducing legislation to require that all service contract/extended warranty solicitations from 3rd party vendors include advertising disclosure language. This mandatory language with be tied to the consumer protection act and is exempt for licensed Idaho dealers and manufacturers. It is our hope that this legislation will diminish the amount of consumer complaints that dealers receive from these type of advertising practices.
NEW REGULATION FOR TOWED VEHICLES
Legislation has been introduced to inform persons whose vehicles have been towed without their consent that charges with storage of the vehicle may be incurred. This bill also allows for consistent record keeping by tow operators, provides maximum storage rates for non-consent tows, and provides penalties for violations of the act. CLICK HERE for the full bill text |
DEALER EDUCATION CLASS
News from the National Automobile Dealers Association
FTC civil penalties to increase Feb. 9
The FTC has announced an increase in civil monetary penalty amounts effective February 9, 2009. The adjustments are based on the increase in the Consumer Price Index (CPI), and include an increase in the maximum penalties per knowing violation of the Fair Credit Reporting Act (examples of which would include the Red Flags, Address Discrepancy, and Affiliate Sharing Rules) from $2,500 to $3,500. In addition, the maximum statutory penalty per violation for certain FTC rules that are enforced under the FTC Act will also increase from $11,000 to $16,000. Under the FTC Act, when a rule (such as the GLB Safeguards Rule, Privacy Rule, or the Red Flags and Address Discrepancy Rules) continues to be violated despite an order to comply with a rule, the FTC can file a lawsuit in federal court seeking $16,000 for each violation of that rule as well as equitable relief.
The Harsh Impact on Dealers of a Detroit Meltdown
(The What-ifs of a Franchisor Bankruptcy or Government Bailout. A Call for GM, Chrysler and Ford to Take Bold, Forward-Looking, Imperative Action)
by Eric L. Chase, Esq
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REGULATORY UPDATES
2008 PROPERTY TAX LEVY REPORT
The 2008 Property Tax Levy Report by the Associated Taxpayers of Idaho (ATI) has just been completed. It is available at: CLICK HERE
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LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!
Have you or anyone else at your dealership won an award recently? Has your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to info@idahoada.org. Also include your contact information for further follow-up.
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Mission statement: The Idaho Automobile Dealers Association was formed in 1932 to represent interests of new vehicle dealers in the state. Our goal then and now has been to improve, enhance, and grow the automobile industry in Idaho. By advocating and providing programs, products and services for new car dealers, we want to create a stable and healthy retail market for Idaho's businesses and consumers.
Sincerely,
Trent Wright
Idaho Automobile Dealers Association |
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Generously Underwritten by:
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UPCOMING EVENTS:
March Dealer Class
Attacking Computer Expenses Presentation by Gillrie Institute
March 11th 1:00pm - 3:00pm MST
Downtown Boise Owyhee Plaza Hotel - Gallery Room
for more info
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