What is an executive vehicle?
An executive vehicle is a vehicle regularly used by a dealer or a person associated with a dealership (firm executive, corporate officer, partner, or manager) who does not have a recent model car registered and licensed in his/her own name for personal driving.
Executive vehicles do not include those provided to the sales staff. See Demonstrator Use Of Vehicles.
How is the use tax determined?
The use tax applies to the value of one such car for each two calendar years in addition to the tax, which applies to demonstrator use by sales staff.
The measure of the use tax is the same as the measure for the computation of use tax on subsequently used demonstrator vehicles. It is 25% of the average selling price of all makes and models of new passenger cars and pickup trucks.
Vehicles not sold by the dealership
The dealer may not include new vehicles which are not of the type or model of new vehicles authorized to be sold by the dealer's franchise agreement within the executive car reporting method.
Only vehicles removed from inventory for use by the executives are considered executive vehicles.
Vehicles purchased specifically for use by the executives are taxable on the purchase price of each vehicle.
Vehicles used by the immediate family of executives
No use tax, in addition to that outlined above, will be due if members of the immediate family of the executive also use a vehicle from inventory, which is not otherwise licensed or required to be licensed.
"Immediate family" includes only the spouse and children of the executive who live in the same household as the executive.