Credit for certain repossessions of a motor vehicle

(1) (a) Subject to Subsections (2) and (3), a seller that collects a tax under this chapter on the sale of a motor vehicle may claim a credit for a tax under this chapter for a motor vehicle that: (i) has been repossessed; and (ii) that the seller resells. (b) A seller of a motor vehicle other than the seller that collects a tax under this chapter on the sale of that motor vehicle may claim a credit for a tax under this chapter: (i) for a motor vehicle that the seller: (A) repossessed; and (B) resells; and (ii) if the seller that collected the tax under this chapter on that motor vehicle: (A) is no longer doing business in this state; and (B) does not owe a tax under this chapter. (2) The amount of the credit allowed by Subsection (1) is equal to the product of: (a) the portion of the motor vehicle's purchase price that: (i) was subject to a tax under this chapter; and (ii) remains unpaid after the motor vehicle is resold; and (b) the sum of the tax rates imposed: (i) under this chapter; (ii) on the motor vehicle's purchase price; and (iii) on the date the motor vehicle was purchased by the person that owns the motor vehicle at the time of the repossession. (3) Except as provided in Subsection (4), if a seller recovers any portion of a motor vehicle's unpaid purchase price that is used to calculate a credit allowed by Subsection (1)(b), the seller shall report and remit a tax under this chapter to the commission: (a) on the portion of the motor vehicle's unpaid purchase price that: (i) the seller recovers; and (ii) is used to calculate the credit allowed by Subsection (1)(b); and (b) on a return filed for the time period for which the portion of the motor vehicle's unpaid purchase price is recovered. (4) A credit under this section may not be reduced by any amount of a motor vehicle's unpaid purchase price that a seller recovers as a result of reselling the vehicle, regardless of whether that amount is included in calculating a credit under this section.