Relating to a refund of motor vehicle sales taxes paid on certain bad debt.

HB 5250 allows vehicle sellers and lenders to receive refunds of motor vehicle sales tax paid on certain unpaid car loans. Specifically, it lets sellers or lenders claim a refund for sales tax paid on "bad debt" (unpaid balances written off for federal tax purposes) related to passenger car sales made through installment contracts. The refund amount equals the taxable portion of the bad debt multiplied by the sales tax rate. This applies only to vehicles designed for 10 or fewer passengers and requires the debt to be officially charged off for federal tax purposes. The comptroller would process these refunds upon claim submission.