The Car and Truck Fleet and Leasing Management Magazine

Two Texas Dealers File Suit Challenging Used-Car Fee

August 30, 2001

On Aug. 15, Autoplex Automotive, a new-car dealership in Amarillo, and H.M. Dodd Co. Inc., a used-car dealership in Gilmer, filed a lawsuit in the District Court of Travis County challenging a Texas law requiring a $225 title and registration fee for any used vehicle brought from another state, according to Automotive News.The law will go in effect on Sept. 1, but the fee collection will not start until Nov. 1 to give time for a fee-collection system to be put in place.Autoplex Automotive and H.M. Dodd are requesting the court to declare the law unconstitutional. One of the attorneys representing the dealerships, Michael Dunagan, said the law will have a major financial impact on dealers, auctions, fleet/lease companies, and others who buy and sell used vehicles.The law intends to raise $105.7 million annually for the state Emission Reduction Plan, which provides grants that would aid Texas businesses in retrofitting and replacing diesel engines or installing special equipment to reduce pollution.The Texas attorney general’s office is reviewing the lawsuit, according to spokesman Tom Kelley.
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