H.B. 107: Vehicle Sales Tax Amendments

What the bill does

Did not pass both chambers; the bill was filed on March 6, 2026.

It would have exempted the lower purchase price from sales tax when a person buys one vehicle and sells another in separate transactions, and set a late registration penalty. It never reached a floor vote: a committee sent it back to the Rules Committee, and it was filed on March 6, 2026.

This bill enacts a sales and use tax exemption for sales of motor vehicles in separate transactions.

• Exempts the purchase price of the lower priced motor vehicle when a person buys and sells two motor vehicles in separate transactions
• Provides the method for claiming the sales and use tax exemption
• Imposes a late registration penalty if a person fails to pay the registration fee before the end of the month following the month in which registration expires
• Makes a new registration effective the same month as the previous registration's starting month
• Eliminates the cure period for a person found in violation of motor vehicle or vessel tax and fee requirements before being subject to a penalty
• Redirects penalties for violation of motor vehicle or vessel tax and fee requirements to the General Fund
• Makes technical and conforming changes

The description and list come from the bill's own long title as recorded by the Legislature; the paragraph above is the Ledger’s summary. Read the official bill. The Ledger takes no position on it.

Subjects: Sales and Use Tax · State Tax Commission · Revenue and Taxation · Motor Vehicles · Sales Tax Exemptions · Income Tax · Individual Income Tax · Tax Credits

How it moved

1. January 20, 2026 · House1st reading (Introduced)Rules Committee
2. January 23, 2026 · Houseto standing committeeRevenue and Taxation Committee
3. March 2, 2026 · HouseHouse Comm - Recommends Returned to RulesRevenue and Taxation Committee
4. March 6, 2026 · Housefiledfile for bills not passed

Steps as the Legislature recorded them; clerical and fiscal-staff entries are left out. Numbers such as 54-14-7 are yeas, nays and absent.

Fiscal note

From the Legislative Fiscal Analyst's note on 2nd Sub. H.B. 107 (Gray), dated January 31, 2026. A fiscal note estimates direct costs and revenue; it is not an appropriation.

• State revenue: Uninsured Motorist I.D. Uninsured Motorist I.D., One-time Restricted Accounts (FN Only) Restricted Accounts (FN Only), One-time Enactment of this legislation would create a new nonrefundable income tax credit for an amount calculated on the sales taxes paid on the sales price of the lower priced motor vehicle when a person replaces a motor vehicle through separate transactions.
• State expenditures: Enactment of this legislation could cost the Tax Commission $124,900 one-time from the General Fund in FY 2027 and $75,100 ongoing from the General Fund beginning in FY 2028 and $114,100 one-time from the Income Tax Fund in FY 2027, $10,000 one-time from the Income Tax Fund in FY 2028, and $682,600 ongoing from the Income Tax Fund beginning in FY 2028 for updates to tax systems, forms, and processes and for ongoing…
• Local government: Enactment of this legislation likely will not result in direct, measurable costs for local governments.
• Individuals and businesses: Enactment of this legislation could reduce income tax liability for businesses and individuals, in aggregate, by an estimated $1.8 million in FY 2028 and $1.3 million annually thereafter as a result of income tax credits calculated on an amount of sales taxes paid on motor vehicles replaced through separate transactions.

Bill overview

Sponsor: Jordan D. Teuscher

Legislature passed-list status: Not available in the saved metadata.

Passed-list membership is not a finding that a bill was signed or took effect. A bill absent from that list is not necessarily pending or defeated.

Latest recorded action

filed
Action date: March 6, 2026

The full step list is above. Find the bill in the official session list for status, hearings and committee records.

Recorded floor votes

No floor-vote records for this bill and session are available here. This does not mean no vote occurred; consult the official bill record.

Ledger coverage

No Ledger stories with an explicit source link to this bill and session are listed here.