SB 171 – Personal Property Tax & Repossessions

Senate Bill 0171 – Personal Property Taxes. Requires a creditor that acquires and transfers personal property on which the creditor holds a lien and on which personal property taxes have been adjudicated delinquent to pay all or part of the delinquency from the proceeds of the transfer according to a formula that apportions the proceeds between the lien amount and the delinquency amount. Allows a creditor to deduct from the proceeds of the transfer any direct, out-of-pocket expenses that the creditor incurs for the repossession, maintenance and disposition of the personal property before applying the formula and paying the delinquent personal property taxes. (Sale*tax/(tax+lien)) Passed 38-10.