Sep 162011

The vehicle registration ‘scheme’ that some states use has the consequence of depressing new car sales and keeping older gas guzzling vehicles on the road much longer.

Take for example Nevada where they start with your vehicle MSRP (not what you really purchased it for, so the ‘value’ is already bloated) then depreciate that over the course of 9 years.   So the more expensive the car the more taxes they take, that’s of course over and above sales taxes and taxes on all the other economic activity surrounding that vehicle sale.  And they’ll keep taking that extra cut forever as the depreciation bottoms out such that any vehicle worth $8000 or more will never hit the minimum ‘Governmental Services Tax’.

Why would you bother buying a new car when you’re going to get hit for 1000’s of dollars in extra costs over the next few years?  If it’s an expensive car you can expect to pay a lot more for the privilege.

We as people need to start asking why.  What justifies vehicle registration fees based on the value of the vehicle?  Do newer cars cause more wear on the roads?  The answer to that is a resounding no. Cars have been getting lighter and lighter which would be a primary road wear indicator.  Basing registration on vehicle weight at least has some logical merit, basing it in MSRP only makes sense if the purpose is to punish the productive people in society.

Many states seem to manage fine with flat rates, even better would no registration and no government run roads.  However the various state/city whatever governments drove out the private road concept a long time ago as there’s nothing authorities hate more than competition.