SB 1275: Sales and use tax exemption: vehicle license fee imposition: motor vehicles.

The bill would exempt new motor vehicles from state sales and use taxes from January 1, 2027, to January 1, 2032. This exemption would not apply to local sales and use taxes or transactions and use taxes. A new license fee would be imposed on the first sale of a new motor vehicle, equal to the amount of tax the purchaser would have paid if the vehicle were not exempt. The dealer would collect the license fee and remit the funds to the state. The revenue would be deposited into the general fund. The bill requires a higher tax rate for taxpayers, thus requiring a 2/3 majority approval in both houses of the legislature.