A number of folks are unclear about one aspect of the tax hike “consensus” proposal for highway construction discussed over the weekend which would include, as Jon Ralston reported, “A change to the depreciation of cars schedule that would impose a one-year freeze.” So what the heck does that mean?
I’m not exactly sure where they’re going with this, but here’s my understanding. You pay a registration fee to the government every year for your car. The fee is pretty high to start with and is based on the value of your car. Now, as everyone knows, your car is worth less year after year as it gets older and you put more miles on it. That’s called “depreciation,” and it means you pay a lower car registration fee every year.
What the tax-hikers in Carson City want to do, basically, is force you to pay the same higher car registration fee on your car this year that you paid on it last year, rather than paying the lower fee based on the car’s “depreciated” value. They’re “selling” this as NOT a tax or fee hike, even though you’ll be paying more than you otherwise would.
In other words…
It absolutely, positively IS a tax/fee hike.
Posted on May 28th, 2007 by Chuck Muth
Filed under: Nevada
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