Highway Robbery
In the wake of a growing family, we surrendered to the call of practicality and adulthood and bought a mini-van. This is not the first new car that we've bought in Mississippi, yet we are astonished anew at a radically disproportionate and burdensome expense saddled on the people of this noble and illustrious state.
Our license tag cost $660.00. That's right, Six Hundred and Sixty Dollars, plus change, and that was with a rebate for 11 months remaining for the $400 renewal that we just paid for the Beetle we traded in.
I'm not a tax lawyer or an economist, but I have to wonder about this extortion. First, it's regressive to my mind, imposing a much greater burden on the poor and imposing a wild cost on operating a car, which often is a necessary tool for getting to work, school, child care, etc. Also, I cannot imagine that this does not adversely affect our economy and investment in the neighborhood. Yes, I'm a tax and spend liberal, but this is irrational.
Alas, we are the poorest state in the union, and although our tax burden is not relatively high by percentage, I cannot fathom that this tax works to good effect. This is one means of revenue for tax strapped counties in a dry and barren land, and, of course, we all pay it. Thus, unless we're all willing to drive cars that are at least 25 years old, then there's little hope of reducing the burden.
Our Lt. Governor, Amy Tuck, only recently defected to the GOP, announced this week that she'll back a sin tax on cigarettes. Is the license tag a sin tax? I don't know, but I doubt that Toyota will be as mad about our $660 contribution to the coffers as Big Tobacco will be.
Readers few, do you have experiences in other states comparable to this, or are we as strange as I think we are?
posted by JRB at 9:28 PM
10 Comments:
I think you've got a purdy license plate; worth every cent you paid for it.
Is the $666 (and I can't believe the God-fearing citizens put up with a figure like that for any reason) based on the assessed value of your car or does everyone pay the same fee? That would really be unfair.
Jeff, I see a conversion experience coming on for you. Go toward the light....
Here in Arkansas, I paid $70 to register my son's car the other day, but that included the fee for the 8 months that he has been driving on expired tags. Personal property taxes on his car were about $30. Of course, that's an older car, but it still ain't bad. Personal property taxes on ALL 3 of our family cars totals less than $150.
When we lived in TX, (no state income tax), I paid over $4,000/year real estate taxes on my home. Our house here is worth more, and I pay less than a 10th of that in Arkansas.
The secret, my friend, is not to buy a new car. Then, you don't pay the higher tax, and you can insure it for liability only since you don't have much invested in it, another big money saver. With two teenage drivers in my household, I go for every trick I can find.
As for the tax situation, move to Arkansas.
And vote Republican.
Like Elrod.
As Radec has already chimed in on the Colorado situation I will simply add my voice to the chorus. I think Colorado may just be more expensive than the great state of MS. A new big vehicle, such as a van, truck, SUV, can cost anywhere from $600 to $900 depending on the its value and weight. A friend of Emily's recently paid almost $900 to register her Dodge truck. Granted it was a big truck designed to tow her horse trailer but still it was mighty expensive.
Anyone have any idea what Oklahoma costs?
Radec, yes, a minivan. We're about to have two kids under two years old with grandparents in three other states, so we gave in. I had shame at first, but after our Christmas jaunt, I'm sold out and satisfied.
Mark, it's not a flat fee, which would be harshly regressive. It is based on value of the car, but it does not fall off as precipitously as the CO example. Our '01 VW Beetle was still going for over $400 on the renewal every year.
Which leads me to Don. You're right; on principle we are opposed to buying new cars. What we found with reliable mini-vans, though, is that a pre-owned, late model with reasonably low miles was virtually the same price, after we were able to factor in a corporate discount. It wouldn't have helped the tag much anyway.
As for voting Republican, my difference is that I do not think all taxes are evil, or that all taxes are good. I'm in favor of smart taxes spent well. Here, we have dumb taxes spent ill.
As for moving to Arkansas, I don't think that one of the Top 10 Most Conservative Colleges. In the Universe. Ever. would hire me at this point, especially since I lodged one of those "few alumni complaints," to dis Coulter. In the spirit of Bear Bryant, however, who, when asked why he left A&M to return to UA, said, "Well, Mama called," we'd probably be on the fast train to Searcy if mama were to call.
Or to Tennessee, where I paid $75 to tag my Jeep in law school, and where there is no income tax (not that I had any income in law school. . . )
Jeff, I'll see if I can get mama to call. She'll probably say "Jeff who?"
As for the vote Republican comment, I haven't been able to tell a great deal of difference in Republican spending and Democrat spending in quite a few years now. I think the GOP learned a few lessons from the Dems about solidfying the base, and it ain't cheap.
Anyway, I feel your pain, to quote William Jefferson Clinton. I asked Jack Shock a couple months ago if he wrote that line, and he wouldn't say.
Don, are you suggesting that mama forgot me? I need to step up my game.
Seems like you're on your own with the car tag fee. Even here in California we pay/paid roughly $150 each for our car tags. In California!
Quit blogging about this, JRB. I don't want anyone in Sacramento to read this and up our fees. We already have high state income taxes, high property taxes, and a relatively high sales tax. Oh, and every fifth breath of ocean air is taxed, too. And I'm sure Cal Tech researchers are trying to figure out how to effectively tax the sunshine.
I'm kidding. I think.
The good news about the used-car tax in AR is that it is less of a burden on lower-income folks who very seldon buy brand-new mini vans.
The problem with the used-car tax is that it has to be paid every time the vehicle changes hands. That seems a little unfair to me, but I can live with it.
I highly recommend sales tax-free Delaware for your car purchases. That's the only place where I've ever bought a new car in my life.
And the GOP has asked me to never vote for any their candidates; my endorsement is the kiss of death.
JRB, I can't believe you even question if the tax for registering a car or buying a license is a "sin tax". As a bleeding heart liberal, I would think you would know that what we need to do is increase taxes on these evil greenhouse gas producing machines that are poisoning our atmosphere and ruining the world for our children!
KT,
From a reliable source in the Sooner state...
First time registration in OK can be fairly expensive.
Here is my understanding of the way they calculate it.
New Vehicle -- 3.25% of the purchase price (or taxable value)
Used Vehicle -- $20 on the first $1,500 of value and 3.25 on remaining value.
The cost for the tag each year after that is fairly cheap and works on a declining scale.
BUT remember Oklahoma's OVERALL cost of living is one of the best in the country!!
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