LRB-2209/1
PJH&JK:jld:km
2001 - 2002 LEGISLATURE
June 26, 2001 - Introduced by Representatives Ladwig, Schneider, Stone, Albers,
Bies, Freese, Gronemus, Gunderson, Hundertmark, Johnsrud, Krawczyk,
Musser, Nass, Ott, Owens, Pettis, Powers, Skindrud, Staskunas, Sykora,
Turner and Petrowski, cosponsored by Senator Plache. Referred to
Committee on Ways and Means.
AB453,1,3
1An Act to create 77.51 (4) (b) 3m., 77.51 (15) (b) 4m. and 218.0171 (2) (cq) of the
2statutes;
relating to: sales tax on motor vehicles purchased after a consumer
3receives a refund under a new motor vehicle warranty.
Analysis by the Legislative Reference Bureau
Currently, the law governing repair, replacement, and refund under a new
motor vehicle warranty, commonly called the "lemon law," provides remedies for a
person who purchases or leases a motor vehicle, or who otherwise may enforce a
motor vehicle warranty (a consumer). Under the lemon law, if a motor vehicle cannot
be repaired, the manufacturer must either replace the vehicle or give the consumer,
and any holder of a perfected security interest in the consumer's vehicle, a full
refund. A full refund includes, in addition to the purchase price and other charges,
any sales taxes paid by the consumer at the point of sale. The sales tax is calculated
at 5% of the difference between the purchase price of the vehicle and any vehicle the
consumer traded in when he or she purchased the vehicle.
Under current law, if a consumer receives a refund under the lemon law and
subsequently purchases a motor vehicle to replace the vehicle for which he or she
received a refund, the person pays a sales tax based on the full purchase price of the
replacement vehicle.
This bill requires a manufacturer, upon payment of a refund under the lemon
law, to provide a written statement to the consumer that includes the purchase price
of the vehicle and the date on which the manufacturer issued the lemon law refund.
Under the bill, a consumer who makes a subsequent purchase of a motor vehicle and
presents the written statement to a motor vehicle dealer within 180 days of the date
on which the manufacturer issued the refund pays sales tax only on that part of the
purchase price that is the difference between the full purchase price of the original
vehicle and the replacement vehicle.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB453, s. 1
1Section
1. 77.51 (4) (b) 3m. of the statutes is created to read:
AB453,2,62
77.51
(4) (b) 3m. If a person who purchases a motor vehicle presents a
3statement issued under s. 218.0171 (2) (cq) to the seller at the time of purchase, and
4the person presents the statement within 180 days from the date of receiving a
5refund under s. 218.0171 (2) (b) 2. b., the purchase price specified in the statement
6issued under s. 218.0171 (2) (cq).
AB453, s. 2
7Section
2. 77.51 (15) (b) 4m. of the statutes is created to read:
AB453,2,128
77.51
(15) (b) 4m. If a person who purchases a motor vehicle presents a
9statement issued under s. 218.0171 (2) (cq) to the seller at the time of purchase, and
10the person presents the statement within 180 days from the date of receiving a
11refund under s. 218.0171 (2) (b) 2. b., the purchase price specified in the statement
12issued under s. 218.0171 (2) (cq).
AB453, s. 3
13Section
3. 218.0171 (2) (cq) of the statutes is created to read:
AB453,2,1714
218.0171
(2) (cq) Upon payment of a refund to a consumer under par. (b) 2. b.,
15the manufacturer shall provide to the consumer a written statement that specifies
16the full purchase price of the motor vehicle having the nonconformity and the date
17on which the manufacturer provided the refund.
AB453,3,2
1(1) The treatment of section 218.0171 (2) (cq) of the statutes first applies to
2refunds that are made on the effective date of this subsection.
AB453,3,54
(1)
This act takes effect on the first day of the 2nd month beginning after
5publication.
