Motor Vehicle Regulations-Dealers

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Motor Vehicle Dealer Permit

35.VII.4.01 revised effective April 1, 2008.

 

35.VII.04.01 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 1

 

100

Permit Requirements

101

Definitions - The following words and phrases, when used in this regulation, shall have the meaning as follows:
1. “Motor vehicle” shall mean every vehicle intended primarily for use and operation on the public highways, which is self-propelled and every vehicle intended primarily for operation on the public highways, which is not driven or propelled by its own power, but which is designed either to be attached to and become a part of or to be drawn by a self-propelled vehicle, but not including farm tractors and other machines and tools used in production, harvesting and care of farm products.
2. “Person” shall mean every natural person, firm, co-partnership, association or corporation.
3. “Motor vehicle dealer” shall mean any business engaged in the selling or exchanging of new motor vehicles, new and used motor vehicles or used motor vehicles; and, which has an established place of business open for inspection at any time by any peace officer or the Chairman of the Mississippi State Tax Commission or one of his authorized representatives during reasonable hours; and, which buys and sells or exchanges at least twenty-four (24) motor vehicles per year that are the same motor vehicle type for which distinguishing number tags are being sought under this article. For purposes of this paragraph each of the following categories shall be considered a different motor vehicle type:

  a. Motor vehicles (as defined under Section 27-19-3) with a gross vehicle weight (as defined under Section 27-19-3) of less than sixteen thousand (16,000) pounds, not including motorcycles;
  b. Motorcycles;
  c. Trailers, semitrailers and house trailers; and
  d. Motor vehicles not included in subparagraphs (a), (b) and (c) of this paragraph.

4. “Dealer” shall mean such of the principal officers of a corporation registered as a motor vehicle dealer, and such of the partners of a co-partnership registered as a motor vehicle dealer as are actively and principally engaged in the motor vehicle business. The term “dealer” shall not include:

  a. Directors, stockholders or inactive partners; or
  b. Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under any judgment or order of any court, whether state or federal; or
  c. Public officers, including state, county, or municipal employees, while performing their official duties; or
  d. Persons disposing of motor vehicles acquired for their own use and actually so used when the same shall have been used, so acquired in good faith, and not for the purpose of avoiding the provisions of this articles; or
  e. Finance companies or banks which sell repossessed motor vehicles, and insurance companies which sell motor vehicles which they have taken into their possession as an incident of payment made under policies of insurance, and which do not maintain a used car lot or building with one (1) or more employed motor vehicle salesmen.

5. “New motor vehicle dealer” shall mean a business dealing in new motor vehicles, tractors, trailers, or semitrailers, or new and used motor vehicles, tractors, trailers, or semitrailers.
6. “Used motor vehicle dealer” shall mean a business dealing in used motor vehicles, tractors, trailers, or semitrailers. “Automobile dismantlers” shall also be classified as used motor vehicle dealers.
7. “Limited motor vehicle dealer” or “limited dealer” shall mean a business dealing in new or used vehicles which buys and sells or exchanges fewer than the number of motor vehicles required to be sold or exchanged in order to fall within the definition of the term “motor vehicle dealer’” and is granted a limited license at the discretion of the Chairman. Such license will convey all of the privileges of a “motor vehicle dealer” except that a limited motor vehicle dealer will not be entitled to purchase or use dealer tags. Limited dealers will otherwise be bound by the provisions of this regulation.
8. “Established place of business” shall mean any place owned or leased and regularly occupied by any person for the primary and principal purpose of engaging in selling, buying, bartering, exchanging or dealing in motor vehicles, tractors, trailers or semitrailers, where same may be displayed or offered for sale and where the books and records required of the conduct of such business are maintained and kept. Established places of business may include a location intended for the temporary offering of motor vehicles, tractors, trailers or semitrailers for sale. Such temporary locations must meet all the requirements of other permanently established places of business. Established places of business, once licensed, shall be open for inspection at any time by any peace officer or employee of the State Tax Commission during reasonable hours. To constitute a place of business, it shall be apparent that there is a holding out to the general public that an establishment is offering motor vehicles, tractors, trailers or semitrailers for sale. There shall be an office separate from and not in conjunction with or related to any other business for the purpose of transacting the business of offering motor vehicles, tractors, trailers or semitrailers for sale, or in lieu of such office there shall be:

  a. A sign indicating the name of the business, the name of the owner, telephone number, and that the business is a motor vehicle dealer. It must be clearly visible and located at the front of the lot, and;
  b. A lot which is separate and apart from any other business. If the lot adjoins the lot of any other business, the separation must be by a method clearly indicating that the area is used for the purpose of offering motor vehicles, tractors, trailers or semitrailers for sale.

9. “Automobile dismantler” shall mean any person who maintains an established place of business and who is engaged in the business of buying, selling or exchanging used motor vehicles, mobile homes or house trailers for the purpose of remodeling, taking apart or rebuilding same or buying and selling of parts of used motor vehicles.
10. “Automobile auction” shall mean any person, firm, association, corporation or trust, resident or nonresident, acting as an agent for the purchaser or seller of motor vehicles.
11. “Chairman” shall mean the Chairman of the State Tax Commission.
12. “Commission” shall mean the State Tax Commission.
13. “Full time employee” shall mean any employee working at the minimum 30 hours per week and received monetary compensation for such hours. Proof of such employment may be required when questioning the use of a dealer tag. Such proof may be, but is not limited to, copy of the W-2 form, time sheet or MESC UI-3 form.

102

A dealer shall make application for a dealer tag permit to the State Tax Commission on forms prescribed and furnished to him. The commission then shall issue a permit containing name and address of the dealership and any other information the commission deems necessary. The application shall be accompanied by a fee of one hundred dollars ($100.00).

103

To obtain dealer tags, which after October 31, 1993, will be a distinguishing number, the dealer must remit forty-three dollars and seventy-five cents ($43.75) for each tag up to twelve tags. Additional dealer tags may be purchased at a cost of eighty-three dollars and seventy-five cents ($83.75).

104

A dealer engaged only in buying, selling or exchanging motorcycles may purchase a motor vehicle dealer tag permit at a cost of fifty dollars ($50.00). Dealer tags for motorcycles may be purchased for fourteen dollars and seventy-five cents ($14.75) each and may only be displayed on motorcycles.

105

A dealer engaged only in buying, selling, or exchanging trailers, semitrailers, or house trailers may purchase a motor vehicle dealer tag permit at a cost of seventy-five dollars ($75.00). Dealer tags for trailers may be purchased for eighteen dollars and seventy-five cents ($18.75) each and may only be displayed on trailers.

106

A manufacturer or manufacturer’s branch located in Mississippi may purchase dealer tags for delivering to and from such factory at a cost of eighteen dollars and seventy-five cents ($18.75) each.

107

A heavy truck dealer may purchase not more than three (3) dealer tags for use on heavy trucks at a cost of one hundred thirty-three dollars and seventy-five cents ($133.75) each.

108

Limited dealers are not eligible to purchase dealer tags.

109

Dealers will be required to justify the number of dealer tags requested when such number exceeds the number of full-time employees of the dealership.

110

(Reserved)

200

Dealer’s Use of Distinguishing Number Tags

201

A motor vehicle bearing a motor vehicle dealer distinguishing number tag assigned to a motor vehicle dealer may be operated by a dealer, his authorized representative or customer as provided in this regulation for the following purposes and uses:
1. For the purpose of testing and adjusting such vehicle in the vicinity of the
dealer’s place of business.
2. For a one-time demonstration of a heavy truck, either empty or under load, by prospective bona fide purchasers. However, any such use shall be limited to a period of not more than four (4) days. Any person operating a heavy truck under the provisions of this paragraph shall carry with him at all times while operating such truck written authority to do so signed by the dealer. A copy of such authorization shall be retained by the dealer.
3. For business or demonstration use of the dealer or any full-time employee of the dealership or prospective purchaser.
4. For use by a customer whose vehicle is being repaired by the dealer, but such use shall not extend longer than ten (10) days and shall be authorized by the dealer in writing. Such authorization must be kept in the vehicle while in use.

202

Proper Use of a Dealer Tag Shall Not Include the Following:
1. Use by family members of the dealer or employees of the dealership who are not full-time employees.
2. Use by owner, director, stockholders or partners of the dealership who are not full-time employees of the dealership.
3. Use by receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under any judgment or order of any court, whether state or federal.
4. Use by public officials, including state, county, or municipal employees, while performing their official duties or commuting to or from the locations where they perform their official duties.
5. Commuting to and/or from school by a full-time student or teacher, or commuting by anyone to or from any other employment not directly associated with the dealership. This includes other businesses owned by the owner of the dealership or other employment of the full time employees of the dealership.
6. Use of a dealer tag on a vehicle which is not for sale by the dealer, or use of a dealer tag on a vehicle which is titled to the dealer or a full-time employee of the dealership. Also any vehicle in inventory that is used for the purpose of all service vehicles, tow trucks, wreckers, flat beds and courtesy vans.
7. Non-educational use of those tags assigned to schools for driver education purposes,
8. Use by persons having their vehicles repaired by the dealership if the “loaner” vehicle does not contain the required statement from the dealer or if the use exceeds the (10) days, and
9. Non-business use, except when operated by the owner of the dealership or full-time dealership personnel, on a vehicle in inventory and available for sale.

203

The proper use of dealer tags will be strictly enforced. Dealers will be periodically required to verify to the Chairman or his agents that dealer tags are being used properly. Such verification will be furnished at the dealer’s business location. The dealer will provide clear evidence that the dealer tags are being used in accordance with this regulation.

204

Misuse of dealer tags may result in the forfeiture of such tags.

205

Failure to adhere to any of the provision of this regulation may result in the revocation of the Motor Vehicle Dealer Permit.

206 (Reserved)

Revocation of Designated Agent Authority

 

35.VII.04.02 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 2

100

Section 63-21-13 of the Mississippi Code of 1972, As Amended, provides that a
motor vehicle dealer shall be a designated agent. Thus, if the motor vehicle dealer’s designated agent status is revoked for cause, the dealer permit is likewise revoked. Upon receipt of a notice of revocation, the dealer shall surrender the dealer permit, all dealer tags and all titling materials within ten (10) days.

101

The dealer may appeal the revocation within ten (10) days from receipt of the
notice of same.

102 (Reserved)

Wholesale Dealers

 

35.VII.04.03 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 3

 

100

Section 27-19-303 of the Mississippi code of 1972, as amended, has defined a
wholesale dealer. There are several points to clarify in this definition.

101

The State Tax Commission shall only license Mississippi residents as motor
vehicle dealers, which includes wholesale dealers. Wholesale dealers shall not receive tags.

102

A wholesale dealer may not keep more than two (2) vehicles in inventory at any
one time. If an inventory of more than (2) vehicles is maintained, then the wholesale dealer must be licensed as a used motor vehicle dealer, post the bond, and maintain a lot. Used motor vehicle dealers may sell to licensed dealers as well as to individuals.

103

Wholesale dealers are only to sell to other licensed motor vehicle dealers. Each
sales record must indicate the motor vehicle dealer’s name and permit number. The county tax collector shall not title any vehicle sold to an individual by a wholesale dealer. Under no circumstances is a wholesale dealer to sell to an individual.

104

Wholesale dealers shall not be designated agents and will have a permit number
that identifies the wholesaler as not having the authority to act as a designated agent. When a wholesale dealer purchases a motor vehicle for resale, his name must appear on the title as being one in the chain of ownership. The permit given wholesale dealers shall read “Wholesale only” on the face of the permit.

105

The Chairman of the State Tax Commission has the authority to license wholesale
dealers at his discretion and also has the authority to revoke such authority at his discretion for any violations of the law or regulation.

106 (Reserved)

Designated Agent-Cancellation of

 

35.VII.04.04 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 4

 

100

The State Tax Commission may cancel any Designated Agent’s authority, as appointed, in writing at any time, with or without cause

101 (Reserved)

Distributors of Mopeds

 

35.VII.04.05 Mississippi Administrative Code

Part 7, Subpart 4, Chapter5

100

Distributors of Mopeds shall qualify as a Designated Agent of the State Tax Commission for titling as authorized in Section 63-21-13, Mississippi Code of 1972. The manufacturer shall supply a properly assigned manufacturer’s statement of origin to the Distributor, which shall be further assigned to the purchaser by the Distributor. The Distributor shall complete an application for each purchaser of a moped. The purchaser shall be provided a copy of the application (labeled owner’s temporary permit), which will be presented, to the County Tax Collector at the time a license tag is purchased. The original title application and properly assigned manufacturer’s statement of origin shall be forwarded to the State Tax Commission no later than the nest business day as set forth in Section 63-21-15, Mississippi Code of 1972.

101 (Reserved)

Power of Attorney (79-015)

 

35.VII.04.06 Mississippi Administrative Code

Part 7, Subpart 4, Chapter6

 

100

If Title to a motor vehicle is held by other than the owner, then the owner may execute in triplicate form (79-015) (Power of Attorney to transfer a Motor Vehicle). The first copy will be retained by the party of the institution holding Title; the second copy will be delivered to the party or institution named as Attorney in said instrument; And, the third copy will be forwarded to the State Tax Commission as a supporting document to the application for Certificate of Title. Upon receipt of said duly executed Power of Attorney, the attorney may transfer Title to the motor vehicle named and herein with the same force and effect as if executed by the principal.

101 (Reserved)

Designated Agent – Time Period to Submit Application

 

35.VII.04.07 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 7

 

100

Section 63-21-15 (7) of the Mississippi Motor Vehicle Title Act states: “Every designated agent within this state shall, no later than the next business day they are received by him, forward to the State Tax Commission by mail, postage prepaid, the originals of all applications received by him, together with such evidence of title as may have been delivered to him by the applicant.”

101

The Designated Agent will be billed an additional fee of two dollars ($2.00) for each application for title not received by the State Tax Commission ten (10) days of the date shown on the title application.

102 (Reserved)
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Power of Attorney – Assignment of

 

35.VII.04.08 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 8

100

When a Power of Attorney to Transfer Motor Vehicle (79-015) has been properly completed, this same completed form may not be reassigned to another individual and/or company.

101 (Reserved)

Detachable Attachments – Titling and Lien Perfection

 

35.VII.04.09 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 9

 

100

When a motor vehicle titles, detachable attachments such as dump body, lift body, lift gate, or camper, such attachment is not a permanent part of the motor vehicle and therefore not included on the Title. Perfection of liens for such attachments must be made under the Uniform Commercial Code and filed with a Mississippi Chancery clerk. When titling a motor home, where two Manufacturer’s Statement of Origin are furnished (one on the chassis and one on the house) both Manufacturer’s Statements of Origin must be submitted and the title will issued reflecting the VIN of the chassis, but the lien will be perfected on both chassis and home.

101 (Reserved)

Designated Agent – Title Fee Checks Submitted

 

35.VII.04.10 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 10

 

100

When title applications are submitted to the State Tax Commission by Designated Agents, the accompanying check, in payment of title fees, must be issued and submitted by the Designated Agent. Deviation from this procedure will result in rejection and return of all such checks and accompanying applications.

101 (Reserved)

Automobile Auction not Defined as Selling Dealer

 

35.VII.04.11 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 11

 

100

When a motor vehicle is sold through a licensed Automobile Auction or other Commissioned Agent, a bill of sale or other transfer form from the Automobile Auction or Commissioned Agent to the purchasing dealer will not be acceptable as a supporting document for title application.

101

When the above transaction occurs, the following documents must be provided by the applicant for the Mississippi title:
1. Motor Vehicles Currently Titled (any state)

  a. Current title properly assigned from selling to purchasing dealer to title applicant.

2. Motor Vehicles Not Previously Titled

  a. Bill of sale from selling dealer to purchasing dealer (must show name and address of seller).
  b. Bill of sale from purchasing dealer to title applicant.
102 (Reserved)

Name – Vehicle Owned by Proprietorship

 

35.VII.04.12 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 12

 

100

When a natural person carries on business as a sole proprietor, it is required in both the title application and in the Certificate of Title, that the name of the owner shall be stated as the name of the individual natural person, whether or not the trace name is added. The use of the trade name alone in the title application and in the Certificate of Title, without the name of the individual who owns the business, does not comply with the requirements of the Mississippi Motor Vehicle Title Act. The burden is put on the lender, or purchases, or conditional seller to find out whether the business name of his customer represents a corporation, partnership, association, or natural person.

101 (Reserved)

Designated Agent – Resubmission of Rejects Application

 

35.VII.04.13 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 13

 

100

When a title application and supporting documents are rejected and returned to a Designated Agent for failure to furnish required information or documents, such corrected title application and supporting documents must be returned to the State Tax Commission within thirty (30) days of the date shown on title application reject letter. Failure to resubmit these documents within the specified time period will result in the title application being re-classified as a “new” application, requiring the payment of an additional title fee of $4.00.

101 (Reserved)

Fees – Additional Charge Must be Itemized

 

35.VII.04.14 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 14

 

100

When a Designated Agent submits a title application the fee charged to the application must be itemized. In accordance with Section 63-21-63 of the Mississippi Motor Vehicle Title Law only $4.00 plus $1.00 for the Designated Agent’s Fee can be charged for a Title Application. If any other charges are made to the applicant, they must be listed or itemized with an explanation for each charge.

101

EXAMPLE: $5.00 Title Application
$5.00 Release of Security Interest

102 (Reserved)

Revocation of Designated Agent Status

 

35.VII.04.15 Mississippi Administrative Code

Part 7, Subpart 4, Chapter 15

 

100

The Commissioner may revoke the designated agent status of a designated agent upon a showing of a failure to faithfully perform those duties imposed by this chapter or other good cause, after giving the designated agent ten days notice of the intention of the Commissioner to revoke said status. Unless good cause is shown within said ten days why such status should be revoked, the Commissioner may revoke said status.

101 (Reserved)
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