LUBBOCK, TX (KCBD) - Judge Robert Jones agreed on a motion Wednesday that would eliminate the sales tax for Reagor-Dykes Auto Group customers in Lubbock County that are in the vehicle registration process.
Since the auto group declared bankruptcy at the beginning of August, customers have reported problems with trade-ins and properly getting registration and car titles. This new agreement with the Lubbock County Tax Assessor’s Office will allow cars to be registered without paying a sales tax.
The decision to waive the sales tax in Lubbock County, specifically, was made because a majority of the RDAG customers are from the area. Regardless, any person who purchased a vehicle from the auto group will now be permitted to register their car – even if they do not live in Lubbock County.
However, the only county that will grant the registration without a sales tax fee is Lubbock. RDAG attorneys are looking into a way to work that deal in with other counties in Texas, but as of now that does not seem possible.
This agreement also does not address liens existing on trade-in vehicles. An agreement on that is said to be forthcoming, at least based off what RDAG counsel said during Wednesday’s hearing.
The sales tax fees account for around 85 percent of fees associated with car titles, RDAG counsel said. That also means the remaining 15 percent will have to come out of pocket for customers. But that amount, on average, is around the $100 range.
Now, the Lubbock County Tax Assessor’s Office will have to come up with a way to organize customers. That announcement by either the tax assessor’s office or RDAG will be released to the public soon.
The plan currently is to have RDAG send out a letter to customers it knows have not been able to get their car registered. Regardless, customers will be informed on this new settlement.
The RDAG saga is not over with this judgment; more litigation is expected. However, Jones said this should be able to provide relief for customers affected by the auto group’s bankruptcy.