HB339 - Motor vehicle sales and use tax; exemptions for vehicle transfers, limited liability companies.

1 Co-Sponsor

Motor vehicle sales and use tax; exemptions; transfers; limited liability companies. Provides that no motor vehicle sales and use tax shall be imposed on vehicle transfers from (i) an individual, partnership, or limited liability company to a corporation or limited liability company or (ii) from a corporation or limited liability company to an individual, partnership, or limited liability company if (a) the transfer is incidental to the formation, organization, or dissolution of a corporation or limited liability company in which the individual, partnership, or limited liability company holds the majority interest in both entities and (b) the transfer to a limited liability company is not a precursor to a transfer of control of the assets of the company to avoid motor vehicle sales and use taxes. Under current law, transfers from (1) an individual or partnership to a corporation or limited liability company or (2) from a corporation or limited liability company to an individual or partnership are exempt from the motor vehicle sales and use tax if the transfer is incidental to the formation, organization, or dissolution of a corporation or limited liability company in which the individual or partnership holds the majority interest.