On June 29, 2020, Assembly Bill 85 was signed into law requiring used vehicle dealers to collect and remit to the Department of Motor Vehicles (“DMV”) applicable sales tax. Used vehicle dealers must remit applicable sales tax within 30 days from the date of sale. This bill also imposes a penalty for failure to timely remit sales tax. Effective January 1, 2021.
California Assembly Bill 82 requires the DMV to draft regulations in order to establish any additional requirements for implementing AB 85. The bill also eliminated a provision in AB 85 requiring the DMV to withhold vehicle registrations until the dealer pays sales tax and penalties. Effective January 1, 2021.
Senate Bill 192—the Budget Reconciliation and Financing Act of 2020—increases the processing fee dealers may charge from $300 to $500, in addition to the purchase price of a vehicle. Effective July 1, 2020.
The Consumer Financial Protection Bureau (“CFPB”) is establishing a Pilot Advisory Opinion Program in response to commentary encouraging the Bureau to offer guidance in cases of regulatory uncertainty. The CFPB announced this new program June 22, 2020 after receiving requests submitted under the Request for Information Regarding Bureau Guidance and Implementation Support.
The CFPB released its final “Payday, Vehicle Title, and Certain High-Cost Installment Loans” rule on July 7, 2020. The rule removes the "ability to repay" provisions targeted at payday lenders, which were originally implemented in 2017. Additionally, the CFPB has released compliance aids, FAQs, and an updated Small Entity Compliance Guide.
The Payday Loan Reform Act allows an Illinois lender to charge a $3 fee for verifying a borrower’s information. Effective July 1, 2020.
Senate Enrolled Act 395 revises the process for updating the maximum charges under the Indiana Code for both retail sales and consumer loans by reinserting the dollar bracket adjustments to January of odd number years. However, the rates currently remain unchanged from the rates effective through July 1, 2020. Precomputed loans and sales are prohibited as of July 1, 2020. In addition, a Prepaid Finance Charge is now allowed. Effective for sales or loans made on or after July 1, 2020.
The Minnesota Commerce Department published their periodic adjustment in dollar brackets effective July 1, 2020 through June 30, 2022. Effective July 1, 2020.
Under Minnesota’s Motor Vehicle Retail Installment Sales Act the motor vehicle document preparation fee rises from $100 to $125. Effective July 1, 2020.
The Department of Consumer Credit published the changes in dollar brackets for Retail Installment Sales and Consumer Loans. Effective July 1, 2020.
The Department of Consumer Affairs released its biannual dollar bracket adjustment effective through June 30, 2022. Among the dollar bracket adjustments are consumer credit sales, consumer leases, and consumer loans. Effective July 1, 2020.
HB 1061 was signed into law by Governor Kristi Noem. The new law provides for the waiver of registration fees on motor vehicles owned by improvement districts. Effective July 1, 2020.
SB 14 defines which data must be included with the registration and plates for motorcycles, snowmobiles, passenger vehicles, and trailers. Effective July 1, 2020.
The dollar amount brackets and ceilings subject to adjustment in the Texas Financial Code for Retail Installment Sales and Consumer Loans. Effective July 1, 2020.