By Rachel Tatum

Starting with tuners, then moving to domestics (and most recently off-road vehicles), Neil Tjin is working on a ’94 Toyota Land Cruiser for submission to the SEMA Battle of the Builders competition. So far, the GEN VI: 80-Series SUV maintains the majority of its rugged good looks (including an OEM factory grille), but Tjin never fails to impress with his clean and stylish builds. Watch the video to learn more about what makes this build unique:

Visit the SEMA Show YouTube Channel for more videos and builder interviews, and subscribe so you don’t miss new videos leading up to the 2019 SEMA Show.

By Rachel Tatum

Starting with tuners, then moving to domestics (and most recently off-road vehicles), Neil Tjin is working on a ’94 Toyota Land Cruiser for submission to the SEMA Battle of the Builders competition. So far, the GEN VI: 80-Series SUV maintains the majority of its rugged good looks (including an OEM factory grille), but Tjin never fails to impress with his clean and stylish builds. Watch the video to learn more about what makes this build unique:

Visit the SEMA Show YouTube Channel for more videos and builder interviews, and subscribe so you don’t miss new videos leading up to the 2019 SEMA Show.

By Rachel Tatum

Starting with tuners, then moving to domestics (and most recently off-road vehicles), Neil Tjin is working on a ’94 Toyota Land Cruiser for submission to the SEMA Battle of the Builders competition. So far, the GEN VI: 80-Series SUV maintains the majority of its rugged good looks (including an OEM factory grille), but Tjin never fails to impress with his clean and stylish builds. Watch the video to learn more about what makes this build unique:

Visit the SEMA Show YouTube Channel for more videos and builder interviews, and subscribe so you don’t miss new videos leading up to the 2019 SEMA Show.

SEMA News—August 2019

INDUSTRY NEWS

Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.

Wrangler 3.0 EcoDiesel This is the long-rumored (U.S. market) Jeep Wrangler 3.0L EcoDiesel, which is finally becoming a reality. According to Jeep, only Wrangler Unlimited models will offer the EcoDiesel V6’s 260 hp and 442 lb.-ft. of torque as a powertrain option. Engine Stop-Start technology will be featured on EcoDiesel models, and the powerplant will be mated to a ZF-sourced eight-speed automatic transmission. According to the Mopar Insiders website, “The updated EcoDiesel will implement new turbocharger technology featuring a low-friction bearing, which is designed for low-end and transient performance.” Expect an official debut in the coming months, with an on-sale date sometime in November.
’21 Ford F-150 This is a first look at the ’21 Ford F-150, with the redesign likely to focus on styling and engine changes. Ford has been working on an F-150 hybrid that is likely to be introduced with the new model, along with a plug-in hybrid. A full EV model could follow. Most models should get EcoBoost engines with upgrades over the current versions. The recently introduced V6 turbodiesel could return, and the naturally aspirated V6 and V8 engines could be culled due to economy and customer-demand concerns. A new 4.8L V8 may replace the current 5.0L, although turbocharging the EcoBoost V6 models remains unconfirmed. Expect to see the redesigned F-150 sometime next year, with production starting in late 2020.
Dodge Charger Widebody This Charger Widebody prototype appears to be the Scat Pack variant. Back in March, Dodge brought a design concept for the Charger widebody to Spring Fest (SF14) in Pomona, California. There have been a few prototypes since then, but they’ve all seemed identical to the concept shown at SF14. This prototype looks identical to the concept shown but features the original multi-spoke wheel design featured on the SRT392 and R/T Scat Pack with the Dynamics Package. After catching this prototype, Dodge is expected to offer a similar approach to that of the Challenger Widebody (multi-trim application). It’s rumored that the Charger Widebody will make its official debut at The Woodward Dream Cruise in August.

SEMA News—August 2019

INDUSTRY NEWS

Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.

Wrangler 3.0 EcoDiesel This is the long-rumored (U.S. market) Jeep Wrangler 3.0L EcoDiesel, which is finally becoming a reality. According to Jeep, only Wrangler Unlimited models will offer the EcoDiesel V6’s 260 hp and 442 lb.-ft. of torque as a powertrain option. Engine Stop-Start technology will be featured on EcoDiesel models, and the powerplant will be mated to a ZF-sourced eight-speed automatic transmission. According to the Mopar Insiders website, “The updated EcoDiesel will implement new turbocharger technology featuring a low-friction bearing, which is designed for low-end and transient performance.” Expect an official debut in the coming months, with an on-sale date sometime in November.
’21 Ford F-150 This is a first look at the ’21 Ford F-150, with the redesign likely to focus on styling and engine changes. Ford has been working on an F-150 hybrid that is likely to be introduced with the new model, along with a plug-in hybrid. A full EV model could follow. Most models should get EcoBoost engines with upgrades over the current versions. The recently introduced V6 turbodiesel could return, and the naturally aspirated V6 and V8 engines could be culled due to economy and customer-demand concerns. A new 4.8L V8 may replace the current 5.0L, although turbocharging the EcoBoost V6 models remains unconfirmed. Expect to see the redesigned F-150 sometime next year, with production starting in late 2020.
Dodge Charger Widebody This Charger Widebody prototype appears to be the Scat Pack variant. Back in March, Dodge brought a design concept for the Charger widebody to Spring Fest (SF14) in Pomona, California. There have been a few prototypes since then, but they’ve all seemed identical to the concept shown at SF14. This prototype looks identical to the concept shown but features the original multi-spoke wheel design featured on the SRT392 and R/T Scat Pack with the Dynamics Package. After catching this prototype, Dodge is expected to offer a similar approach to that of the Challenger Widebody (multi-trim application). It’s rumored that the Charger Widebody will make its official debut at The Woodward Dream Cruise in August.

SEMA News—August 2019

INDUSTRY NEWS

Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.

Wrangler 3.0 EcoDiesel This is the long-rumored (U.S. market) Jeep Wrangler 3.0L EcoDiesel, which is finally becoming a reality. According to Jeep, only Wrangler Unlimited models will offer the EcoDiesel V6’s 260 hp and 442 lb.-ft. of torque as a powertrain option. Engine Stop-Start technology will be featured on EcoDiesel models, and the powerplant will be mated to a ZF-sourced eight-speed automatic transmission. According to the Mopar Insiders website, “The updated EcoDiesel will implement new turbocharger technology featuring a low-friction bearing, which is designed for low-end and transient performance.” Expect an official debut in the coming months, with an on-sale date sometime in November.
’21 Ford F-150 This is a first look at the ’21 Ford F-150, with the redesign likely to focus on styling and engine changes. Ford has been working on an F-150 hybrid that is likely to be introduced with the new model, along with a plug-in hybrid. A full EV model could follow. Most models should get EcoBoost engines with upgrades over the current versions. The recently introduced V6 turbodiesel could return, and the naturally aspirated V6 and V8 engines could be culled due to economy and customer-demand concerns. A new 4.8L V8 may replace the current 5.0L, although turbocharging the EcoBoost V6 models remains unconfirmed. Expect to see the redesigned F-150 sometime next year, with production starting in late 2020.
Dodge Charger Widebody This Charger Widebody prototype appears to be the Scat Pack variant. Back in March, Dodge brought a design concept for the Charger widebody to Spring Fest (SF14) in Pomona, California. There have been a few prototypes since then, but they’ve all seemed identical to the concept shown at SF14. This prototype looks identical to the concept shown but features the original multi-spoke wheel design featured on the SRT392 and R/T Scat Pack with the Dynamics Package. After catching this prototype, Dodge is expected to offer a similar approach to that of the Challenger Widebody (multi-trim application). It’s rumored that the Charger Widebody will make its official debut at The Woodward Dream Cruise in August.

SEMA News—August 2019

INDUSTRY NEWS

Photos courtesy SpiedBilde, Brian Williams. Reuse or reproduction without the copyright holder’s consent is prohibited.

Wrangler 3.0 EcoDiesel This is the long-rumored (U.S. market) Jeep Wrangler 3.0L EcoDiesel, which is finally becoming a reality. According to Jeep, only Wrangler Unlimited models will offer the EcoDiesel V6’s 260 hp and 442 lb.-ft. of torque as a powertrain option. Engine Stop-Start technology will be featured on EcoDiesel models, and the powerplant will be mated to a ZF-sourced eight-speed automatic transmission. According to the Mopar Insiders website, “The updated EcoDiesel will implement new turbocharger technology featuring a low-friction bearing, which is designed for low-end and transient performance.” Expect an official debut in the coming months, with an on-sale date sometime in November.
’21 Ford F-150 This is a first look at the ’21 Ford F-150, with the redesign likely to focus on styling and engine changes. Ford has been working on an F-150 hybrid that is likely to be introduced with the new model, along with a plug-in hybrid. A full EV model could follow. Most models should get EcoBoost engines with upgrades over the current versions. The recently introduced V6 turbodiesel could return, and the naturally aspirated V6 and V8 engines could be culled due to economy and customer-demand concerns. A new 4.8L V8 may replace the current 5.0L, although turbocharging the EcoBoost V6 models remains unconfirmed. Expect to see the redesigned F-150 sometime next year, with production starting in late 2020.
Dodge Charger Widebody This Charger Widebody prototype appears to be the Scat Pack variant. Back in March, Dodge brought a design concept for the Charger widebody to Spring Fest (SF14) in Pomona, California. There have been a few prototypes since then, but they’ve all seemed identical to the concept shown at SF14. This prototype looks identical to the concept shown but features the original multi-spoke wheel design featured on the SRT392 and R/T Scat Pack with the Dynamics Package. After catching this prototype, Dodge is expected to offer a similar approach to that of the Challenger Widebody (multi-trim application). It’s rumored that the Charger Widebody will make its official debut at The Woodward Dream Cruise in August.

SEMA News—August 2019

LEGISLATIVE AND TECHNICAL AFFAIRS

Most States Now Require Remote Sellers to Collect Sales Tax

By Stuart Gosswein

Companies should assume that economic nexus is here to stay following last year’s South Dakota vs. Wayfair Supreme Court decision and plan accordingly. Nevertheless, for many small- and medium-size companies, there may be no sales tax exposure given current state tax thresholds.

Companies without any physical presence in a state can now be required to collect sales tax based on their sales volume. In June 2018, the U.S. Supreme Court ruled in favor of a South Dakota state law requiring remote sellers to collect sales tax. (The term “remote” applies to internet, catalog and telephone sales, along with other types of transactions.) The court overturned the 1992 Quill decision, which required a physical presence to create “substantial nexus,” thereby allowing state sales tax collections.

A company can now have “economic nexus” in a state without otherwise having a physical presence. While granting South Dakota the right to require tax collections based on the volume of sales into the state, the court did not specifically rule on what amount of sales triggers an economic presence. Rather, it sent the South Dakota vs. Wayfair case back to a lower court to address the issue of whether the state law placed an undue burden on interstate commerce. The parties (Wayfair, Overstock and Newegg) then settled out of court in October 2018.

While the question of “undue burden” is technically unsettled, the Supreme Court ruling provided guidance when it deemed the South Dakota law as setting a sensible small-business safe harbor. The South Dakota law established a small-business exemption for retailers with less than $100,000 or 200 transactions in annual sales.

The court noted that the law provided small-business sellers with a reasonable exemption and prohibited retroactive collection. The court also observed that South Dakota is part of the Streamlined Sales and Use Tax Agreement (SSUTA). The SSUTA is intended to address tax collection burdens by creating a single, state-level tax administration, simplified tax rates and tax returns, uniform definitions, a central electronic registration system for all member states, and the availability of free tax administration software. (There are currently 23 participating SSUTA states in addition to Washington, D.C. For more information, visit
www.streamlinedsalestax.org.)

Economic nexus for remote sellers is based on sales revenue or the number of transactions or both. Companies should assume that economic nexus is here to stay following last year’s Supreme Court decision and plan accordingly. The court decision has made it less likely that the U.S. Congress will address the issue through federal legislation.

States have been eager to collect sales tax revenues for years and have been quick to enact laws and update regulations following the court ruling. Since the court indicated that the thresholds set under the South Dakota law seemed reasonable ($100,000 or 200 transactions), many states have adopted the same thresholds or are setting higher levels.

How Should Companies Respond to the New
Developments Governing State Sales Tax?

First, does your company exceed the threshold for remote sales tax nexus? For most states, the threshold is relatively high: $100,000 or 200 transactions in annual sales. For many small and medium-size companies, there may be no exposure.

If your company does meet a state’s economic nexus threshold, should a company immediately register, collect and remit the taxes? Not necessarily.

For all companies, this is a time to step back and review all potential liabilities. For example, is there a chance that your company already had physical nexus and should have been collecting sales taxes due to the presence of a sales representative, a distribution or storage facility, or participation in a trade show? Some states also have economic franchise and other tax obligations. It is important to review the status of a company’s presence in a state before registering to collect sales tax.

Returning to the economic nexus threshold issue for remote sales, states may vary in how they are calculated. Revenues may be based on gross sales, retail sales or taxable sales. The number of transactions may encompass one agreement, multiple invoices, or monthly subscriptions. Each state will define when a taxable year has commenced when calculating whether the company is below or above the economic threshold. If a company is close to the exemption threshold for a specific state,
it should then review how the state calculates nexus.

All states have a formal or informal voluntary disclosure agreement (VDA) process for addressing tax liabilities. If a company determines that a tax exposure already exists but has not been paid, the company should take advantage of the VDA process since it limits the lookback period of tax liabilities (usually to three years), removes most if not all penalties, and sometimes reduces or eliminates interest. Caution: The VDA process is not always available once you have registered to collect sales tax, so there is an incentive for conducting a comprehensive tax-risk assessment before registering.

SEMA recommends that companies consult their accountant or tax professional regarding the issues raised.

The chart above shows the current out-of-state sales tax collection requirements, as of May 1, 2019 but please note that these requirements and still changing.

Current Out-of-State Sales Tax Collection Requirements, as of May 1, 2019:

SEMA News—August 2019

LEGISLATIVE AND TECHNICAL AFFAIRS

Most States Now Require Remote Sellers to Collect Sales Tax

By Stuart Gosswein

Companies should assume that economic nexus is here to stay following last year’s South Dakota vs. Wayfair Supreme Court decision and plan accordingly. Nevertheless, for many small- and medium-size companies, there may be no sales tax exposure given current state tax thresholds.

Companies without any physical presence in a state can now be required to collect sales tax based on their sales volume. In June 2018, the U.S. Supreme Court ruled in favor of a South Dakota state law requiring remote sellers to collect sales tax. (The term “remote” applies to internet, catalog and telephone sales, along with other types of transactions.) The court overturned the 1992 Quill decision, which required a physical presence to create “substantial nexus,” thereby allowing state sales tax collections.

A company can now have “economic nexus” in a state without otherwise having a physical presence. While granting South Dakota the right to require tax collections based on the volume of sales into the state, the court did not specifically rule on what amount of sales triggers an economic presence. Rather, it sent the South Dakota vs. Wayfair case back to a lower court to address the issue of whether the state law placed an undue burden on interstate commerce. The parties (Wayfair, Overstock and Newegg) then settled out of court in October 2018.

While the question of “undue burden” is technically unsettled, the Supreme Court ruling provided guidance when it deemed the South Dakota law as setting a sensible small-business safe harbor. The South Dakota law established a small-business exemption for retailers with less than $100,000 or 200 transactions in annual sales.

The court noted that the law provided small-business sellers with a reasonable exemption and prohibited retroactive collection. The court also observed that South Dakota is part of the Streamlined Sales and Use Tax Agreement (SSUTA). The SSUTA is intended to address tax collection burdens by creating a single, state-level tax administration, simplified tax rates and tax returns, uniform definitions, a central electronic registration system for all member states, and the availability of free tax administration software. (There are currently 23 participating SSUTA states in addition to Washington, D.C. For more information, visit
www.streamlinedsalestax.org.)

Economic nexus for remote sellers is based on sales revenue or the number of transactions or both. Companies should assume that economic nexus is here to stay following last year’s Supreme Court decision and plan accordingly. The court decision has made it less likely that the U.S. Congress will address the issue through federal legislation.

States have been eager to collect sales tax revenues for years and have been quick to enact laws and update regulations following the court ruling. Since the court indicated that the thresholds set under the South Dakota law seemed reasonable ($100,000 or 200 transactions), many states have adopted the same thresholds or are setting higher levels.

How Should Companies Respond to the New
Developments Governing State Sales Tax?

First, does your company exceed the threshold for remote sales tax nexus? For most states, the threshold is relatively high: $100,000 or 200 transactions in annual sales. For many small and medium-size companies, there may be no exposure.

If your company does meet a state’s economic nexus threshold, should a company immediately register, collect and remit the taxes? Not necessarily.

For all companies, this is a time to step back and review all potential liabilities. For example, is there a chance that your company already had physical nexus and should have been collecting sales taxes due to the presence of a sales representative, a distribution or storage facility, or participation in a trade show? Some states also have economic franchise and other tax obligations. It is important to review the status of a company’s presence in a state before registering to collect sales tax.

Returning to the economic nexus threshold issue for remote sales, states may vary in how they are calculated. Revenues may be based on gross sales, retail sales or taxable sales. The number of transactions may encompass one agreement, multiple invoices, or monthly subscriptions. Each state will define when a taxable year has commenced when calculating whether the company is below or above the economic threshold. If a company is close to the exemption threshold for a specific state,
it should then review how the state calculates nexus.

All states have a formal or informal voluntary disclosure agreement (VDA) process for addressing tax liabilities. If a company determines that a tax exposure already exists but has not been paid, the company should take advantage of the VDA process since it limits the lookback period of tax liabilities (usually to three years), removes most if not all penalties, and sometimes reduces or eliminates interest. Caution: The VDA process is not always available once you have registered to collect sales tax, so there is an incentive for conducting a comprehensive tax-risk assessment before registering.

SEMA recommends that companies consult their accountant or tax professional regarding the issues raised.

The chart above shows the current out-of-state sales tax collection requirements, as of May 1, 2019 but please note that these requirements and still changing.

Current Out-of-State Sales Tax Collection Requirements, as of May 1, 2019:

SEMA News—August 2019

PEOPLE

By SEMA News Editors

In the Driver’s Seat

John Hotchkis of Hotchkis Performance Named SEMA PAC Chair

John Hotchkis (center) discusses SEMA PAC at the 2018 SEMA Show.

It’s the dawn of a new era at SEMA’s Political Action Committee (SEMA PAC). After more than a decade of exemplary service as the chairman of the industry’s legislative watchdog, PAC Chairman Doug Evans officially handed over the reins to John Hotchkis of Hotchkis Performance.

Hotchkis is no stranger to the industry. He founded his company—a manufacturer of performance suspension products—in 1992 and continues to serve as its president. While many are familiar with his tenure on SEMA’s Board of Directors, he was also awarded the Young Enthusiast Network’s Vanguard Award in 2011 and previously served on the former Street Performance Council and the SEMA Cares Committee.

SEMA News had the opportunity to catch up with him to find out what’s in store for the PAC and why association members should get involved.

SEMA News: How did you get involved with SEMA PAC?

John Hotchkis: The great Doug Evans’ influence! As a SEMA business owner, I know firsthand how much impact legislation can have on a company. Cars are not just my passion, they’re also my livelihood. Ensuring that SEMA members have a voice in Washington, D.C., is critical to our industry’s future. When Doug let me know that he was planning to step down, I was eager to throw my hat into the ring.

SN: How and where is the SEMA PAC administered?

JH: The SEMA PAC is managed and administered by the SEMA team in D.C. They spend a considerable amount of time understanding the lawmakers on the hill. This entails numerous congressional office visits and events, plus phone calls to determine who the SEMA PAC should support.

SN: Why should SEMA members pay attention to politics?

From left: Neal Billig, Eric Snyder, John Hotchkis, Christian Robinson, Stuart Gosswein at SEMA’s Government Affairs office in Washington, D.C.

JH: To protect their businesses from unwanted and unintended legislation. Many feel Washington has a bad reputation. It’s the notorious swamp. Therefore, getting involved is a must. Whether it’s protecting our right to modify and personalize vehicles, participate in grassroots motorsports, banning the sale of E-15, tax reform or healthcare, there’s always something brewing that will impact our businesses. It would be irresponsible to sit on the sidelines while others outside our industry determine our future.

SN: What is SEMA PAC, and how does it help business owners?

JH: The PAC is fundamentally about amplifying our industry’s voice and ensuring that the politicians in Washington pass bills that help our industry grow. We’ve all heard the saying “all for one and one for all.” That perfectly sums up SEMA PAC. I feel it’s critical that everyone step up and become involved.

SN: We understand, but what does SEMA PAC do?

John Hotchkis (left) and Rep. Doug LaMalfa (R-CA) at the 2014 SEMA Show.

JH: By law, SEMA is not allowed to use association funds to impact the electoral process. That’s where the individually funded SEMA PAC comes in. It allows SEMA members to pool their personal resources to make campaign contributions to candidates and lawmakers that support our industry.

SN: How can SEMA PAC help a member’s business?

JH: It’s simple: SEMA PAC helps us build relationships with the power brokers in Washington, and frankly, we always need more friends! Whether we like it or not, the game in D.C. is who you know and who can help you. The more lawmakers we have in our corner, the less likely we will have laws that hurt our industry.

SN: Who can join SEMA PAC?

JH: If you’re a SEMA member, you should join. We welcome everyone’s involvement from manufacturers to distributors and in between.

SN: How does somebody get involved?

JH: Government rules require SEMA PAC to get your permission before we ask for your donation. It’s a painless process known as becoming “PAC approved” and it only takes minutes. Head to
www.semapac.com and get signed up for free. In fact, when you log-on, the form is already filled out for you.

SN: Does becoming “PAC approved” mean somebody has to contribute?

JH: There’s never an obligation to donate, but our industry needs your contribution!

SN: Is there a minimum contribution to support SEMA PAC?

JH: No. All we ask is that everyone chip-in whatever they can afford. SEMA PAC is about strength in numbers and that’s why we need your help. The more people that help, the stronger we are.

SN: How do SEMA members learn more?

JH: Visit www.semapac.com or contact Christian Robinson via email at christianr@sema.org.