By DERIC C. NANCE
deric@du2.byu.edu
Utahns are paying less to register their cars due to the new age-based uniform fee passed in the 1999 Legislature.
Many newly purchased vehicles are requiring a considerably smaller tax fee, said Jannice Gully, public relations official for the Department of Motor Vehicles.
The new age-based uniform fee replaced the value-based system that required Utah residents to pay more taxes on cars worth more money. The age-based fee is determined by the age of the vehicle.
Gully said a Utah resident will now pay, at the most, $150 on their car taxes. The older the car is, the less tax is required.
The age-based uniform fee system applies only to cars, light trucks and vans. Medium and heavy trucks, recreational vehicles, and motorcycles are based off the 1.5 percent uniform fee where 1.5 percent is multiplied by the taxable value of the vehicles.
The problem with the value-based system fee was it was too closely tied with inflation, said Gully. 'When the cost of cars increased, so did the required tax fees.'
Newly purchased expensive cars were requiring a dear price in taxes, and sometimes Utah residents were illegally avoiding payment.
All individuals that are residents of Utah as well as businesses that operate a motor vehicle in Utah must pay state fees every time the vehicle is registered. Registration is required at the initial purchase and at each subsequent renewal of registration yearly.
Gully said under the old value-based system many Utah residents would illegally register their car out of state to save money.
Connie Blacksmith, motor vehicle clerk in Idaho, said Utah residents would risk a $10,000 fine by registering their car in Idaho because its tax fees are based on the age system.
Owners of more expensive cars will benefit the most with the new age-based system than owners of less expensive cars will.
'Both a Jaguar and a Ford Escort will be paying $50 in nine years, even though the Jaguar has a considerably lower declining rate,' Gully said.
Even though Utahns may be benefitting from the lower tax rate, the DMV reports they are seeing a drop in motor vehicle tax revenues.
Gully said the legislature has called for an adjustment property tax to compensate for tax revenue losses if Utah counties continue to fall short.
George Mantes, R-Tooele, initiator of the age-based tax bill, said its too early to judge the new system. 'In time the new system will prove to be better.'