"Senate Bill 429 changed the yearly depreciation used to calculate vehicle taxes. The result is an increase in the Governmental Services Taxes portion of the registration fees," the DMV said in a statement. "The (registration fee) increase is most noticeable for vehicles that are nine years old and older.
The amount of the governmental services taxes will actually rise on these vehicles," it added in its statement.Senate Bill 429 has decreased the annual depreciation on vehicles by 10%. As such, a vehicle that is one year old will be taxed based on 95 percent of its original value instead of the previous 85 percent.
The value depreciates 10% each year after that until reaching the minimum at nine years, which is now 15% instead of five. The bill also raises the minimum government services tax from $6 to $16.
The registration fee increase, which affects the whole state of Nevada , was implemented by DMV last Sept 1, in accordance with the senate bill.
But motorists whose cars are less than nine years old will actually experience a decrease in the car registration payments because of the same bill.
"Owners of vehicles that are two to eight years old will find they are paying the same amount this year as last year. Their fees will go down in the following year," the DMV said.
It added that "owners of vehicles that are one year old will see their fees go down by less than they would have otherwise."
The $33-basic registration fee for most private vehicles, meanwhile, remains unchanged.
Revenue generated from this new fee hike is estimated at $50 million per year. It will go to the state’s general fund.
Meanwhile, the DMV also announced that it will soon be using postcards to notify motorists that their vehicle registration is due for renewal. "The department will save $371,000 annually by using postcards instead of stuffed envelopes," it said in a statement. (Dymphna Calica-La Putt)
( Published on September 3, 2009 in Asian Journal Las Vegas p. A1 )
| < Prev | Next > |
|---|
