Auto registration refunds targeted

Tuesday, April 24, 2001 | 10:16 a.m.

CARSON CITY -- The Assembly has voted to kill some refunds on automobile registration, hoping to save state and local governments nearly $4 million annually.

Assemblywoman Kathy McClain, D-Las Vegas, said Assembly Bill 246 would repeal a 1997 law that went into effect in January. The law allows a refund on the time remaining on the vehicle privilege tax to motorists who turn in their license plates and registration.

The refund has mainly benefited Nevada residents who are moving out of the state. In the first three months the law has cost the state and local governments more than $10,000 per day.

The new bill, approved by a 38-2 vote, has not been widely publicized, but Assemblyman Roy Neighbors, D-Tonopah, said he anticipated that many people would seek refunds before AB246 is passed by the Senate.

Officials with the state Department of Motor Vehicles and Public Safety said the loss in the first three months totaled $292,712. Officials predict a $3.9 million annual reduction in taxes to be $3.9 million. Of that, $1 million went to the state highway construction fund. The remainder is divided among counties and school districts.

The bill does not affect rebates earned from registration when a motorist trades in an old car for a new one. The owner could still apply the unused registration and privilege tax to the new vehicle.

State motor vehicle department officials have written 10,830 checks under the current law. What's more, it costs from $6 to $20 to process a check, depending on the number of times the check is handled. The state treasurer's office said today 300 to 400 checks have been returned to the state because of bogus addresses.

The process will have to start again to determine whether the state can track down the 300 to 400 individuals to whom it owes money. Neighbors said the state must keep the uncashed checks on the books for six years.

Of the total number of refunds, 322 have been for less than $1.

Officials predict Clark County will lose $1.9 million this year, which it would have had to share with the school district.

But if the school districts do not get their predicted share of the money, the state would have to make up the difference.

McClain said another part of her bill is aimed at catching those people who come to Nevada, get new driver's licenses but don't register their vehicles.

DMV workers are required to inform applicants for driver's licenses that they must register their cars within 30 days.

Law enforcement agencies also are notified of people who might be driving with illegal license plates.

Voting against the bill were Don Gustavson, R-Sun Valley, and Sharron Angle, R-Reno.