What is the main consequence of failing to comply with use tax regulations as a dealer?

Failing to comply with use tax regulations as a dealer can lead to the revocation of the dealer's license. This is a severe consequence because the use tax is essential for the state's revenue when vehicles are purchased out of state and brought into the state for registration. If a dealer does not adhere to these regulations, it indicates potential violations of state tax laws, which can result in legal repercussions, including losing the authority to operate as a licensed dealer. Maintaining compliance is critical for the legitimacy and ongoing operation of any dealership, reinforcing the importance of adhering to tax regulations to sustain business.

The other options involve potential issues for a dealer but do not carry the same serious implications as losing a dealer's license. Increased inspections may occur if there are tax compliance concerns but do not result in immediate loss of operational status. Loss of business opportunities and increased customer complaints are more indirect effects and can certainly impact a dealership's success, but they do not represent the direct legal consequences that non-compliance with use tax regulations entails.