The bill would amend Transportation Code, Chapter 501, to establish a process for rescinding or canceling the retail sale of a used motor vehicle by a dealer if the rescission or cancellation is acknowledged in a written agreement signed by the dealer and the buyer not later than the 30th day after the date of the sale. If the sale of a used vehicle is rescinded or canceled after the dealer has submitted the vehicle title and registration application for the vehicle or remitted money to a county or the state in connection with the sale, the bill would require the dealer to refund money to the person who paid money to the dealer in connection with the sale; and would authorize the dealer to apply for a refund of money paid to the county tax-assessor collector to whom the money or application was submitted. The bill would require the county tax assessor-collector to refund all money remitted by the dealer to the county in connection with the cancelled sale, except for any title application fee and registration processing and handling fee paid to the county. The bill would take effect on September 1, 2023.
The Texas Department of Motor Vehicles (TxDMV) reports that fees associated with motor vehicles sales vary by transaction. Because data necessary to determine the number of vehicle sales that may be rescinded or canceled under the provisions of the bill is not available, the implications to state revenue and the state's cash flow cannot be determined at this time. Based on the information provided by TxDMV, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within the department's existing resources.
The impact to county revenues and cash flow cannot be determined.