Motor vehicle sales and use tax; exemptions for vehicle transfers, limited liability companies.

Motor vehicle sales and use tax; exemptions;transfers; limited liability companies. Provides that no motorvehicle sales and use tax shall be imposed on vehicle transfers from(i) an individual, partnership, or limited liability company to acorporation or limited liability company or (ii) from a corporation or limited liability company to an individual, partnership, or limited liability company if (a) the transfer is incidental to the formation,organization, or dissolution of a corporation or limited liabilitycompany in which the individual, partnership, or limited liabilitycompany holds the majority interest in both entities and (b) the transferto a limited liability company is not a precursor to a transfer ofcontrol of the assets of the company to avoid motor vehicle salesand use taxes. Under current law,transfers from (1) an individual or partnership to a corporationor limited liability company or (2) from a corporation or limitedliability company to an individual or partnership are exempt fromthe motor vehicle sales and use tax if the transfer is incidentalto the formation, organization, or dissolution of a corporation orlimited liability company in which the individual or partnershipholds the majority interest.