Next week, registering a vehicle will cost more

Owners of older cars, trucks to see sharpest jump in tax

Tuesday, Aug. 25, 2009 | 2 a.m.

Gibbons promises veto of tax bill (5-22-2009)
Lawmakers passionate about vehicle registration (5-12-2009)
Lobbyist presses fiscal case for DMV contract (5-7-2009)
Bill would hand DMV contract to one company (4-29-2009)
Auto body shop bill's backer denies conflict (4-28-2009)
Northerners winning war of the wait at DMV offices (4-4-09)
Editorial: Return of long lines? (3-17-2009)
Plan: Make DMV more infernal (3-15-2009)
High-security driver's license system coming to DMV (10-22-2008)

Nevada Department of Motor Vehicles

Archive of Sun politics stories

Carson City — Owners of the more than 2 million registered vehicles in Nevada will begin paying higher fees next week as another piece of the Legislature’s tax increase takes effect.

“Motorists with older vehicles, in particular, will see an increase in the Governmental Services Tax, as the minimums were raised,” said a news release from the state Department of Motor Vehicles, which collects the tax.

The cost of registration renewals will rise an estimated 10 percent.

For example, the Governmental Services Tax, which is based on the depreciated value of the vehicle, will for a 1-year-old car be levied on 95 percent of the value, up from 85 percent. Vehicles 9 years old and older had been taxed on 5 percent of their value. That will increase to 15 percent and the minimum tax will rise from $6 to $16.

The higher tax, aimed at bridging the state’s budget shortfall, is expected to bring in $42.8 million for the remaining 10 months of the fiscal year and $51.4 million in fiscal 2010.

The tax passed near the end of the session with little controversy. The bill also raised business license fees, the payroll tax and the sales tax to support schools.

Bob Coffin, chairman of the Senate Taxation Committee, called the Governmental Services Tax hike “a mild increase and a small part of the tax package. It did not get people up in arms.”

One reason there was little controversy is “it caught people unaware,” said Carole Vilardo, director of the Nevada Taxpayers Association. “Nobody was sure what was happening. It was kind of fluid.”

A veto by Gov. Jim Gibbons was overridden 17-4 in the Senate and 29-13 in the Assembly.

The increase in the payroll tax, which is expected to yield more than $340 million during the biennium, and the 3 percentage point increase in the hotel-motel room tax, estimated to produce $220 million, have already taken effect.

•••

The $18.2 billion invested by the state Public Employees Retirement System lost 15.8 percent of its value during the recession, but fared better than 81 percent of government pension funds, officials said last week.

The returns, which were way off the system’s 25-year average of 9 percent, were better than most of such funds because of a more conservative strategy, said Ken Lambert, system investment officer.

During the past three years the return has been a negative 2.1 percent, but that’s better than the minus 3 percent average of other government retirement systems, Lambert told a meeting of the retirement board.

As of June 30 the system had 41 percent invested in U.S. stocks, 30 percent in government bonds, 16 percent in non-U.S. stocks, 5 percent in non-U.S. bonds and 8 percent in private markets.

There are 105,000 state and local government workers and school district employees enrolled in the retirement system, down 1,000 members because government is not hiring, said Dana Bilyeu, executive officer of the system.

The 2009 Legislature raised the public employee retirement contribution rate from 20.5 percent to 21.2 percent of an employee’s salary. The employee and the government split the monthly payment.

For police and firemen, the contribution rate rose from 34.5 percent to 37 percent.

•••

A state economist predicts Nevada’s job market won’t recover until 2012.

State economist Jered McDonald said the unemployment rate, at 12.5 percent in July, will approach 14 percent in the first or second quarter of 2010 and remain elevated for at least another year before starting to decline.

“We’re looking to 2012 when we start getting new jobs on a year-over-year basis,” he said. “The job losses will begin to decline in 2010 and 2011 and then flatten out near the end of 2011.”

The only strong job markets, McDonald said, are in health care and mining. Mining, however, is not a big contributor to the overall job market, producing only 12,700 jobs in July compared with total private sector employment of 889,500, he said.

McDonald, who presented his forecast to the Green and Renewable Energy Jobs Sector Council last week, also said the opening of CityCenter this year may not create as big a surge in employment as had once been expected.

Discussion: 12 comments so far…

By markp

8/25/09 at 4:50 a.m.

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just what a failing economy needs increased taxes, costs, subscriptions, dues whatever you call it...
By steve7952

8/25/09 at 6:02 a.m.

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Look at your Registration receipt that will include additional taxes.
By vc

8/25/09 at 9:27 a.m.

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The sad thing about the new tax is it will never go away when the economy improves. They will just find somthing to waste it on. Then next recession they will want more.
By bgrebs

8/25/09 at 10:19 a.m.

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Just 5 years ago Gov. Kenny Guinn gave us all a refund on registration fees rather than save it for a rainy day. Now the rain is here, and fees are going up.
By Bakersfield

8/25/09 at 11:13 a.m.

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Here in California, The registration fee on my 2005 Chevrolet Malibu was $125 last year. Just got the bill for this year, Fee is $185. This includes the state increase, plus a new "county fee". We got a 1% sales tax increase too. And the state is still hopelessly short of a balanced budget. VC is right, the fee is here to stay, as are the new taxes. Some cities here have sales taxes over 10%. The idiots running the state don't get it. It's just spend, spend, spend.
By oldladyplayspiano

8/25/09 at 12:23 p.m.

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No one likes tax increases, but we can be thankful we don't pay state income taxes.

I lived in California for 20 years before moving to Nevada to get away from state taxes; extraordinary costs to insure and register a vehicle, and escape the higher costs of gasoline; property taxes, and sales tax.

When the cost of doing business goes up; when we need to maintain our parks; highways, and other public facilities, we have to do our part by paying more.

We're on fixed income; makes it a bit tougher, but I'm ready to fork it over because having lived in 9 different states, I can truly say Nevada has the most to offer with the least-cost to live here.

We've all got to share the load...........
By BlackCat

8/25/09 at 12:40 p.m.

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More reason to keep those out of state tags on your vehicle.
By Patrick_R_Gibbons

8/25/09 at 1:31 p.m.

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Oldlady,

Why isn't government doing its part to control costs?

Think about it. Why does a computer today run 500% faster and cost 60 to 100% less than a computer from just a decade ago? Meaning computers are cheaper and better than before?

Government services remain stagnant in quality but always cost more and more...even after adjusting for inflation.
By Patrick_R_Gibbons

8/25/09 at 1:32 p.m.

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bgrebs,

Here is why we have a rainy day now: http://npri.org/publications/legislature...
By Lenny_V

8/25/09 at 6:54 p.m.

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No personal income state tax my a$$
By NVCitizen

8/26/09 at 6:24 a.m.

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To BlackCat:
It is the people who keep their out-of-state tags that are causing the rest of us to pay additional fees. I have several neighbors who have kept their out-of-state tags on their vehicles. They use our roadways on a day-to-day basis, yet they somehow don't feel that they need to pay for this privilege. Shame on them!
By just_an_average_joe

8/26/09 at 8:05 p.m.

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exactly!

instead of raising the already high rates on those of us who pay, they should focus on enforcement and making those who haven't paid their fees pay a hefty fine.