In such situations, where the claimant is an individual, the Article 15 tax is computed using the higher of the combined sales and use tax rate in the local jurisdiction where the claimant will have the vehicle repaired or the rate in the local jurisdiction where the claimant resided immediately before the loss. Where the vehicle is not a total loss and the claimant is a business, the applicable rate is the combined sales and use tax rate where the vehicle was principally used or garaged immediately before the loss. Where the claimant is a business, the tax is computed at the combined rate in the jurisdiction where the vehicle was principally used or garaged immediately before the loss. When an insurer settles a motor vehicle claim, it must issue a credit voucher and stub in the amount of the tax component withheld. However, the total value of all vouchers may not exceed the tax component of the award.
Insurance companies produce the credit vouchers.
These vouchers must meet a variety of special requirements. The counterfeit-proof aspect of vouchers requires special printing techniques. It also requires printers hired by insurance companies to produce the vouchers to provide a legal certification about the number of vouchers printed. Moreover, insurance companies must submit vouchers to the Department for approval before using them. Each voucher also must contain detailed information about the motorist and the vehicle.