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SB 2803

ATVs & UTVs; require titling, and exempt from ad valorem tax when held by retailers on consignment or floor plan basis.

2025 Regular Session Introduced by Jason Barrett and 2 co-sponsors

SB 2803 requires titles for ATVs/UTVs and exempts dealer consignment or floor-plan inventories from local property tax, with taxes due at the final sale.

Approved by Governor
#judiciaryb #judiciary #divisionb #waysandmeans
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Bill Summary · SB 2803

Summary — SB 2803 (2025)

Title: ATVs & UTVs; require titling, and exempt from ad valorem tax when held by retailers on consignment or floor plan basis
Status: Approved by Governor (listed as approved 2025-03-18)
Introduced: 2025-03-14
Subjects / Committees: Judiciary B; Judiciary, Division B; Ways and Means

Purpose / Intent

SB 2803 requires that all all-terrain vehicles (ATVs) and utility task vehicles (UTVs) be titled, and it establishes an exemption from ad valorem (property) tax for ATVs and UTVs while they are held by retailers either on consignment or as part of a floor‑plan financing arrangement. The bill aims to create a clear ownership record for ATVs/UTVs and to remove a property-tax burden on dealer inventory financed or consigned through lenders or manufacturers.

Key provisions

  • Require issuance of a title for ATVs and UTVs (titling mechanism to be administered under existing motor vehicle/title procedures).
  • Provide an exemption from ad valorem (local property) taxation for ATVs and UTVs that are:
    • Held by a retailer on consignment, or
    • Held by a retailer under a floor‑plan financing arrangement (i.e., inventory financed by a lender or finance company).
  • Implicit operational effect: title will serve as the principal record of ownership and transfer; taxes on the vehicle would apply at the point of sale/transfer to the ultimate purchaser rather than while the vehicle remains in dealer inventory under consignment/floor plan.

Who is affected

  • Retailers/dealers of ATVs and UTVs — reduced local property tax exposure on consigned/floor‑planned inventory.
  • Lenders/finance companies that hold floor‑plan interests — change in tax treatment of financed inventory.
  • ATV/UTV purchasers — titles will be required and will be recorded at purchase; buyers will be responsible for taxes at transfer if applicable.
  • County/local tax assessors and treasurers — administrative change in how dealer-held ATVs/UTVs are assessed and taxed.
  • State motor vehicle/title agencies — responsible for implementing titling requirements and processing title applications/transfers.
  • Potential local government revenues — may experience reduced ad valorem receipts on dealer inventory (no specific fiscal figures provided in version content).

Procedural / Timeline notes

Provided legislative actions (as listed):
- Filed / Received by Secretary of the Senate: 2025-03-14
- Referred to Judiciary, Division B; Ways and Means (various committee actions)
- Passed legislative chambers and enrolled: Passed 2025-03-10; Enrolled Bill Signed 2025-03-13
- Approved by Governor: 2025-03-18
- Other listed committee and reading dates are included in the record (e.g., Read first time 2025-04-07; Title sufficiency recommendations and committee referrals to Education K-16 and Ways & Means occurred during consideration).

Note: The summary reflects the bill title and action log provided. The text of the bill and any fiscal analysis would provide detailed definitions, implementation timelines, and estimated revenue impacts; those details were not included in the materials provided.

Compiled from official sources — confirm details with the bill’s official record.

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