VA Dealers Help Turn Back Titling Tax Increase

STATE LEGISLATIVE UPDATE

At VADAês behest Virginia dealers from around the state were in Richmond recently, to visit with delegates, senators and Governor Timothy Kaine. One issue on everybodyês mind was the proposed titling tax hike on the sale of vehicles from 3 to 5 percent.

Dealers impressed on the governor the potentially devastating impact such an increase could have on sales because of the increased burden on buyers. They noted that titling tax receipts have increased an average of 7 percent annually, outstripping receipt increases from other sales and use tax categories.

The meeting appeared to pay off, at least for now. Last Monday the House of Delegates Finance Committee voted 14 to 8 along party-lines to reject the vehicle tax increase, as well as a measure that would have doubled taxes on auto insurance premiums.

However, the legislative battle over how to fund Virginia’s road and rail network is far from over. Still on the table are similar tax hike bills Gov. Kaine has submitted in the state Senate, and the governor has threatened to call a special session on transportation if lawmakers are unable to come to an agreement by the end of the regular session on March 11.

–The wrangling over this issue is apt to be fierce in this legislative session,” said Mike Charapp of Charapp & Weiss, LLP, WANADAês government relations consultant for Virginia.

Other bills of benefit to Virginia dealers, on which VADA and WANADA agreed before the session include the following:

HB250 and SB194 Temporary Registration and License Plates. These bills clarify that, until a transaction is completed, a customer has only a right to possess and to insure a vehicle.

The House bill has passed the House unanimously. The Senate bill has been referred to the Senate Committee on Transportation to be considered.

HB1034 and SB152 Disclosure of Damage to New Vehicles clarifies that the 3% rule on disclosure of new car damage that has been repaired applies to all damage, including dealer lot damage. The House bill was unanimously sent to the House floor where it unanimously passed the House. The Senate bill has been referred to the Senate Committee on Transportation to be considered.

SB153 Used Vehicle Damage provides for notification of the customerês right to do a pre-purchase inspection. Unless the dealer refuses an inspection, the only claim the buyer will have against a dealer for the condition of the vehicle will be a claim for breach of a written warranty offered by the dealer. The bill was reported out of the Senate Transportation Committee and passed unanimously by the Senate. It has been referred to the House Transportation Committee for House action.

HB1103 Choice of Damages Under the Consumer Protection Act provides that if a customer accepts a cure offer under the Consumer Protection Act, then the customer may not initiate or maintain any other cause of action based on the same facts. The bill has been referred to the House Committee for Courts of Justice for consideration.

HB551 and SB256 Dealership Buy/Sell Standing for Buyers requires that the approval of a buyer of a dealership must be considered according to specific guidelines and that approval cannot be subject to unreasonable conditions on the buyer. The legislation provides an action for damages by both the buyer and the seller if the manufacturer fails to reasonably consider a buyer, or attempts to place unreasonable burdens on a buyer so that the deal is terminated. The House bill has been referred to the House Committee on Transportation and the Senate bill has been referred to the Senate Committee on Transportation for consideration.

Maryland

The top priority for Maryland dealers in the current legislative session is once again defeating any attempt to pass a –California Car” environment bill or a California Car Buyerês Bill of Rights-type bill that would likely call for a cap on how much dealers can mark up loans neither of which has yet surfaced but are still expected. Also of concern are a number of potential bills regulating credit reports.

Proactively, MADA with WANADAês support has introduced a bill (SB 634) to improve various aspects of the dealer franchise protections laws in such important areas as factory audits and succession.

For better grassroots lobbying, MADA has a new website with links and information to all federal, state and local lawmakers, as well as info on issues and legislation and links to media organizations serving Maryland.Just go to MADAês website, click on –Click here to contact your Maryland Legislator” (just below the MADA logo) and youêre on the –Maryland Legislative Action” site.