Off-road vehicles face a minor new regulation starting Jan. 1

Cy Ryan Sun

Sunday, Nov. 13, 2005 | 8:49 a.m.

CARSON CITY -- Nevada has hundreds of thousands of off-road vehicles and motorcycles, and virtually no regulation.

But on Jan. 1, watered-down rules will take effect in an attempt by dealers to stop residents from going out of state to buy the vehicles and avoid the state's sales and use tax.

Susan Fisher, a representative for the Nevada Off-Highway Vehicle Enthusiasts, says more than $38 million is lost in sales to Nevada dealers every year by buyers who get a better price in other states.

And that translates into a loss of $2 million to $3 million in tax revenue.

A person who buys an all-terrain vehicle or motorcycle, dune buggy or snowmobile from out of state doesn't have to register with the state Department of Motor Vehicles. So there's no way to require the buyers to pay the use tax.

"Nevada is one of the only states in the West that does not have registration," says John Glenn, who owns Performance Yamaha in Elko.

The state Division of Parks estimates there are 191,728 off-highway vehicles; 117,255 all-terrain vehicles, 44,366 dirt bikes and 34,860 snowmobiles.

The state Tax Department will hold a public hearing Nov. 16 on a proposed regulation that off-road vehicle dealers can now issue certificates of operation and stickers. But there's no penalty for an owner of an off-highway vehicle, dirt bike or snowmobile to acquire one for free.

Dino DiCianno, deputy director of the Tax Department, said the stickers will be 2 inches by 3 inches and have the word "Nevada" on them with the Vehicle Identification Number. They will have reflective material and will be placed on the left side of the vehicle so they can be seen.

DiCianno said the cost, which the state will pay, is not yet available.

At the 2005 Legislature, the dealers introduced a bill to require registration of off-road vehicles by the state, but, Fisher said, it ran afoul of Gov. Kenny Guinn's edict that there be no new taxes.

Senate Bill 400 "got watered down by the time it got to the governor," Glenn said.

Wayne Fischer, president of the North Tahoe Snow Travelers club, said "There's no teeth in the law. Unfortunately our wonderful governor would not sign a bill with increased fees."

Fischer said he doubted that those who spend thousands of dollars on off-road vehicles or snowmobiles would object to a $20 registration fee to support law enforcement, trail improvements and education.

"There are a lot of people who don't want to abide by the law," he said. But he said a registration fee "would make honest citizens more honest."

Fisher of the Off Highway Vehicle Enthusiasts called the bill a "foot in the door," and the dealers will seek full registration of the vehicles in the 2007 session.

Glenn, a dealer in Elko since 1996, said his customers are in favor of registration "as long as they see a benefit.

"They don't want to see the tax go to the general fund that the government eats up," he said.

They want any registration fee used for improving off-road trails and education, Glenn added.

The new law says that a Nevada dealer must issue a certificate of operation and a sticker when he sells a new vehicle. Those who bought their vehicle out of Nevada can receive a certificate if the purchase was made before Jan. 1.

Those who buy an off-road vehicle out of state after Jan. 1 can request a certificate but must show evidence that the sales and use tax has been paid in Nevada.

But there's no enforcement if the off-road vehicles don't have a certificate and a sticker attached to the unit. And there's no penalty for failing to have the certificate or sticker.

There are also many exceptions to the law. A vehicle registered with the Department of Motor Vehicles doesn't need a sticker. Neither does a motor vehicle designed primarily for use in water.

Sales of off-highway vehicles to Nevadans are up 30 percent this year according to national figures, Glenn said. But some dealers in Nevada say their sales are down.

The new law also prohibits off-road vehicles from traveling on interstate highways, on paved highways for more than two miles. But there is an exception. In cities of more than 100,000, these vehicles can be used if the local government designates the route for use.

It allows local governments to designate sections of a highway for operation, but the operator must have a valid driver's license.

Cy Ryan may be reached at (775) 687-5032 or at cy@lasvegassun.com.