In our last newsletter IADA updated you on legislation related to sales tax. We summarized S1295  Streamlined Sales Tax Project (SSTP) and S1381 which would create a review of all sales tax exemptions during any 5 year period.  As it now stands the both bills have passed the full Senate and are now in the hand s of the House or Representatives.  After following both issues carefully it is the opinion of the IADA that the sales tax exemption review bill is not headed anywhere this year and the House will probably let it die in committee.  However, the SSTP bill has picked up steam and is now headed to committee with more supporters than in any previous year that this issues has been address. 

IADA's service contract legislation also has passed the full Senate and is headed to the House Business Committee.  S1357 has been a two year process aimed at amending the law pertaining to automotive service contracts. The bill will strengthen insurance requirements by requiring sufficient surplus by a financially solvent insurer so that persons purchasing from service contract providers will know that the provider is fiscally sound. In addition, the bill prohibits deceptive practices by service contract providers, and adds criminal and civil penalties enforceable by the county prosecutor or attorney general.

The Dealer Advisory Boards legislation dealing with continuing education for initial dealer licenses also has cleared the full house and is headed to the House Transportation. S1361 would create a new requirement that used auto dealers complete an eight hour CE course of instruction.  IADA supports S1361 and hopes that this will lead to a better understanding of our industry by dealers looking to get in

LOOKING AHEAD

The Joint Finance and Appropriations Committee (JFAC) is efficiently making progress on their budget setting schedule. The budget appropriation bills are moving forward in the Legislative Houses. Although we know there are several tax proposals still angling to be introduced and/or heard in tax committees, time is becoming a critical factor.

We know there are other job creation/economic incentive proposals floating around. Depending on how many of those are introduced and their potential effectiveness will determine how vigilant legislative tax committees will be. Perhaps more proposals will advance and surface next week.