An Act to require that county treasurers calculate excise tax using the amount shown on a bill of sale for a used vehicle sold, leased, or transferred by a person other than a licensed motor vehicle dealer.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 32-5B-4 be AMENDED:

32-5B-4. For the purposes of this chapter, the "purchase price" is means:

(1) For a new motor vehicle sale or lease, the total consideration, whether received in money or otherwise. However, when, provided that if a motor vehicle is taken in trade as a credit or part payment on a the new motor vehicle, the credit or trade-in value allowed by the seller shall be is deducted from the total consideration for the new motor vehicle to establish the purchase price;

(2) For a used motor vehicle sold or leased by a licensed motor vehicle dealer, the total consideration for the used motor vehicle, whether received in money or otherwise. However, when, provided that if a motor vehicle is taken in trade by the dealer as a credit or part payment on a the used motor vehicle, the credit or trade-in value allowed by the dealer shall be is deducted from the total consideration so that the net consideration is established;

(3) For a used motor vehicle sold, leased, or transferred by any person other than a licensed motor vehicle dealer, the total consideration received in money or otherwise. However, when a motor vehicle is taken in trade as a credit or part payment on a used motor vehicle, the credit or trade-in value shall be deducted from the total consideration so that the net consideration is established. The purchaser and seller of the motor vehicle shall submit to the county treasurer a bill of sale, approved and supplied by the secretary. If a bill of sale is not submitted, the excise tax will be assessed on the retail value as stated in a nationally recognized dealers' guide as approved by the secretary of revenue. If the excise tax is assessed on the retail value, the value of the motor vehicle taken in as credit on trade-in shall be the retail value as stated in the nationally recognized dealers' guide amount shown on the bill of sale, as set forth in section 2 of this Act;

(4) For a new or used motor vehicle, as described in subdivision (1) or (2) of this section, which is acquired by gift or other transfer for no or nominal consideration,:

(a) If a new motor vehicle, the manufacturers' suggested dealer list price for new motor vehicles and for; or

(b) If a used motor vehicles vehicle, the retail value, as stated in a nationally recognized dealers' guide approved and furnished by the secretary of revenue;

(5) For a motor vehicle manufactured by a person who registers it under the laws of this state, the amount expended for materials, labor, and other properly allocable costs of manufacture or, in the absence of actual expenditures for the manufacture of a part or all of the motor vehicle, the reasonable value of the completed motor vehicle;

(6) For a rebuilt motor vehicle, upon its initial registration and titling, the total consideration for the salvage vehicle, whether received in money or otherwise, and the total consideration for any assemblies, subassemblies, parts, or component parts used;

(7) For either a new or used motor vehicle or a used vehicle, as defined by described in § 32-5B-21, which is a closed lease, the total consideration, whether received in money or otherwise. Total consideration is all lease payments including cash, rebates, the net trade-in, extended warranties, administrative fees, acquisition fees, or any other fees assessed on the purchase of the vehicle. Total consideration, but does not include title fees, registration fees, motor vehicle excise tax paid pursuant to §§ 32-5B-1, 32-5B-1.1, and 32-5B-21 to 32-5B-24, inclusive, federal excise taxes attributable to the sale of the motor vehicle to the owner or to the lease of the motor vehicle by the owner, insurance, and refundable deposits; or

(8) For either a new or used motor vehicle or a used vehicle, as defined by described in § 32-5B-21, which is leased, and the terms of the lease are either not certain at the time the lease contract is executed or the lease is open ended, the purchase price shall be is the total consideration, whether received in money or otherwise. Total consideration includes is the purchase price of the motor vehicle, plus cash, rebates, the net trade-in, extended warranties, administrative fees, acquisition fees, or any other fees assessed on the purchase of the vehicle. Total consideration, but does not include title fees, registration fees, motor vehicle excise tax paid pursuant to §§ 32-5B-1, 32-5B-1.1, and 32-5B-21 to 32-5B-24, inclusive, federal excise taxes attributable to the sale of the motor vehicle to the owner or to the lease of the motor vehicle by the owner, insurance, and refundable deposits.

Section 2. That a NEW SECTION be added to chapter 32-5B:

At the time an owner sells, leases, or transfers a used vehicle as described in subdivision 32-5B-4(3), the owner must provide to the purchaser a bill of sale, in a form approved by the secretary, which states the total consideration received, in money or otherwise. The purchaser shall submit the bill of sale to the county treasurer within forty-five days after the date of the sale, lease, or transfer.

The excise tax imposed pursuant to § 32-5B-1 is assessed on:

(1) The amount shown on the bill of sale, provided that if a motor vehicle is taken in trade as a credit or part payment on the used vehicle, the credit or trade-in value is deducted from the total consideration; or

(2) If a bill of sale is not submitted, or if the used vehicle is transferred without consideration and is not exempt pursuant to § 6 32-5B-2, the retail value, as stated in a nationally recognized dealers' guide approved by the secretary of revenue, provided that if a motor vehicle is taken in trade as a credit or part payment on the used vehicle, the retail value of the motor vehicle taken in trade is deducted from the total consideration.