DAR File No. 29930

Tax Commission, Motor Vehicle Enforcement

R877-23V-14

Dealer Identification of Fees Associated with Issuance of Temporary Permits Pursuant to Utah Code Ann Sections 41-3-301 and 41-3-302

NOTICE OF PROPOSED RULE

DAR File No.: 29930
Filed: 05/14/2007, 12:10
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed amendment deletes language codified by S.B. 138 (2007). (DAR NOTE: S.B. 138 (2007) is found at Chapter 322, Laws of Utah 2007, and was effective 04/30/2007.)

Summary of the rule or change:

The proposed amendment deletes language penalizing a dealer that fails to segregate and identifies state-mandated fees from dealer service and handling charges. This language has been codified by S.B. 138 (2007).

State statutory or constitutional authorization for this rule:

Sections 41-3-301 and 41-3-302

Anticipated cost or savings to:

the state budget:

None--Any fiscal impact was taken into account by S.B. 138 (2007).

local governments:

None--Any fiscal impact was taken into account by S.B. 138 (2007).

other persons:

None--Any fiscal impact was taken into account by S.B. 138 (2007).

Compliance costs for affected persons:

None--Proposed amendment deletes language that now appears in statute.

Comments by the department head on the fiscal impact the rule may have on businesses:

There is no anticipated impact. D'Arcy Dixon, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Motor Vehicle Enforcement
210 N 1950 W
SALT LAKE CITY UT 84134

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/02/2007

This rule may become effective on:

07/09/2007

Authorized by:

D'Arcy Dixon, Commissioner

R877. Tax Commission, Motor Vehicle Enforcement.

R877-23V. Motor Vehicle Enforcement.

R877-23V-14. Dealer Identification of Fees Associated with Issuance of Temporary Permits Pursuant to Utah Code Ann. Sections 41-3-301 and 41-3-302.

[A. A dealer issuing temporary permits under Sections 41-3-301 or 41-3-302 shall segregate and separately identify the fees required by Title 41, Chapter 1a, as state-mandated fees.

B.](1) Only fees required by Title 41, Chapter 1a, may be identified as state-mandated fees.

[C. A dealer that fails to segregate and separately identify state-mandated fees pursuant to A. is in violation of Title 41, Chapter 3.

D.](2) [If a]A dealer that charges the [purchaser/consumer/lessee]purchaser or lessee of a motor vehicle a fee for [the handling and]preparing or processing [of ]any state-mandated [fees]documents or services ([such fees are commonly referred to as ]"dealer documentary service fees")[, then the dealer] must, in addition to the requirements set forth in [A., B., C. above]Subsection (1), [must ]prominently display a sign on the dealer premises in [such]a location [as to]that is readily discernable by all purchasers[, consumers, or] and lessees. The sign shall [read as follows:]contain the language set forth in Subsection (2)(a).

(a) The (dealer documentary service fee) ( ) as set forth in your contract represents costs and profit to the dealer for preparing and processing documents and other services related to the sale or lease of your vehicle. These fees are not set or state mandated by state statute or rule.

(b) The blank in [the preceding paragraph]Subsection (2)(a) may be wording selected by the dealer to describe the fee charged for document preparation and processing and other services, but must be, in all cases, the actual wording used in the dealer's contract of sale or lease agreement.

 

KEY: taxation, motor vehicles

Date of Enactment or Last Substantive Amendment: [September 15, 2006]2007

Notice of Continuation: March 14, 2007

Authorizing, and Implemented or Interpreted Law: 41-3-301; 41-3-302