FADA Celebrates 100 Years!

The year was 1920. It was the era of the Tin Lizzy, Stutz Bearcat, Hudson Super Six, Cole 8, Oakland and Durant and others. Nationally speaking, the industry was booming. But a lot of people had yet to be convinced that a horseless carriage was here to stay including legislators who looked upon our industry as one to be carefully regulated and heavily taxed.

Automobile dealers were few and far between in Florida in those days. A few local dealer associations had organized but contributed little to the industry as a whole. The majority of 1920's dealers were interested only in selling automobiles. The idea of service hadn't even entered their heads.

A minority group of dealers however recognized the need for organization, cooperation and teamwork and sent a delegation to Washington to investigate forming an organization. Thus the "Florida Automotive Dealers Association" was formed with service being sold to dealers as the up and coming backbone of the industry. And here we are, 100 Years later, celebrating an astounding centennial of service to the greatest industry in Florida!

Stay tuned as we celebrate all year with fun trips down memory lane. If you'd like us to publish pictures and history of your dealership, in print and/or social media, please contact us as soon as possible!
2020 Legislative Session Starts Next Week - Support HB 977

FADA has been preparing diligently for the upcoming Session. We are tracking 14 bills to date. We urge Dealer Members to contact their House members now and ask them to support HB 977.

Rep. Bob Rommel has filed this bill to help you avoid costly lawsuits where you become a named defendant because you loaned or rented a vehicle to a customer who then was involved in an accident when you had no degree of control or negligence. You are included in these vicarious liability lawsuits simply because you have deep pockets. 

The bill must work its way through 3 committees before it reaches floor action for all 120 House members. Your calls can be significant in establishing a strong vote along the way and your participation will impact any negative input from Florida trial lawyers in your home district.

HB 977 makes sense because you should not be liable for the negligence of others, especially when many times you are required to provide loaners to your customers by your OEM’s. Just ask your House member to vote yes and support HB 977 because it renders you immune from vicarious liability claims when you had no negligence as a dealer or rental company.
DEALER DAY January 22

Don't miss this year's Dealer Day on the Hill, January 22. This is your opportunity to come to Tallahassee and participate in the legislative process. Don't worry, you will be matched up with a team, so you won't be alone or have to worry about where to go or what to say. RSVP now! Interested Dealers can also stay for our Winter Board Meeting the following day. Email members@flada.org for more information.
New Mechanics Lien Law on Hold at DMV

A new law that was to be effective January 1, 2020, is now on hold. HB 431 requires dealers to contract with a third party to file consumer notices for mechanics’ liens. This legislation requires a new internal system between these new vendors and Highway Safety, and no vendors have been approved to date. 

Please continue to send your notices as you have in the past, but make sure you follow the new wording requirements as of January 2020 in your notices. You can mail your notices and provide evidence of compliance upon submission of an application for certificate of title or destruction. FADA will inform you when the DMV approves vendors for your use.
ADA Website Compliance - Avoiding Lawsuits

Now is a good time for franchised new-car dealers to evaluate their websites for ADA accessibility and reaffirm a commitment to website accessibility. If a dealership’s website is not compatible with assistive technologies, disabled customers may not be able to shop for vehicles, make online parts purchases or learn more about the dealership. We urge you to register for a NADA webinar  on January 15, 1:00 – 2:00 pm eastern time to learn more. Direct questions to  regulatoryaffairs@nada.org . If you are interested in a vendor to assist you, a resource that has been used by other dealers is Scott Trachtenberg of ADA Site Compliance: scott@adaSiteCompliance.com .
IRS Form 8200 Reminder - Customer Notices Due by January 31

Any purchaser for whom you were required to file a Form 8300 (Cash Reporting) in the prior year, must receive written notice by January 31, that your dealership filed the form with the Internal Revenue Service. If you have already given the customer written notice, you do not need to do it again.

Important Reminder: For any required notices, you are prohibited from informing the buyer if you checked the suspicious transaction box in your customer notification. If you filed Form 8300 voluntarily in order to report a suspicious transaction, you should not inform the customer of the filing. For more information on reporting requirements, read our article on Cash Reporting Form 8300 .
Partial Exemption of Florida Sales Tax to Out-of-State Customers

The Motor Vehicle Sales Tax Rates by State (reciprocity list) is an annual Tax Information Publication (TIP) published by the Florida Department of Revenue (most recently issued December 31, 2019).

Even if you deliver a car to an out-of-state customer in Florida -- it is more than likely to be eligible for a partial exemption on the 6% sales tax rate. Florida allows for a partial exemption on the rate depending on the customer's home state. The state where the sale takes place has the right to the sales tax, so make sure any tax you collect is remitted to the Florida DOR. For more information, read FADA's article on Sales and Use Tax for Out-of-State Residents .
New Discretionary Sales Surtax Rates for 2020

The Discretionary Sales Surtax Information for Calendar Year 2020 is now available from the Department of Reve nue. These rates can change and it is your responsibility to collect the correct rate. New rates become effective on January 1 of each year; however, expiration dates vary. Be sure to periodically check the expiration dates (listed on Form DR-15DSS).
In Memoriam: Luther Coggin

Please join us in honoring the life of Coggins Automotive Group founder Luther Coggin, who passed away peacefully on December 10.

He was a dearly loved family man, successful business owner and philanthropist. Well recognized in the automotive industry, his business which began in the 1960s, grew to encompass 26 dealerships in the state of Florida. Our community is forever changed by his life and contributions.
In Memoriam: Wayne Schmidt Sr.

Please join us in honoring the life of Suncoast Chrysler Jeep Dodge RAM founder Wayne Schmidt Sr., who passed away peacefully on January 1, surrounded by his family.

Wayne was a pioneer and leader in the automobile industry whose hard work and dedication will live on through his legacy. Since first opening in 1975, the dealership has become a local institution overseen by three generations of family. He will be greatly missed.