LB 271 (1997) - Motor Vehicle Property Taxes and Fees

LB 271 establishes a new method for taxing motor vehicles. The motor vehicle tax will be calculated by multiplying a "base tax" by a percentage factor that decreases as the age of the motor vehicle increases. The percentage factors range from 100 percent to zero percent (motor vehicles 14 years old or older will not be subject to the tax). The bill's base tax for motorcycles and passenger cars, trucks, utility vehicles, and vans will vary according to the dollar value of such motor vehicles when new. But the base tax for other types of motor vehicles (eg., cabin trailers, selfpropelled mobile homes, trucks over five tons, and trailers other than semitrailers) will vary according to the weight of the vehicle rather than its dollar value when new and the base tax for buses, semitrailers, and types of motor vehicles not listed in LB 271 will be a fixed amount regardless of weight or dollar value when new.

The base tax ranges from $60 for passenger motor vehicles having a value when new under $ 10,000 to $1,460 for such vehicles having a value when new of $78,000 or more. Between those extremes, the base tax increases in increments of $40 for each additional $2,000 of valuation. The base tax for motorcycles is structured in a similar fashion, but it uses different tax and value amounts. According to their weight, the base tax for cabin trailers ranges from $ 10 to $40; selfpropelled mobile homes, $160 to $860; trucks over five tons, $260 to $1,160; and trailers other than semitrailers, $15 to $45. Regardless of their value or weight, the base tax for buses is $360; semitrailers is $ 110; and all other motor vehicles not listed in LB 271 is $310.

The bill also provides that the motor vehicle tax must be reduced by 25 percent for a motor vehicle registered under a "salvage" certificate of title. LB 429 contained a somewhat similar provision.

LB 271 also establishes a motor vehicle fee structure. The fee will be $5 for passenger cars, trucks, utility vehicles, and vans, up to five tons, having a dollar value when new of less than $20,000. For passenger motor vehicles having a dollar value when new of $20,000 or more and for all motorcycles, recreational vehicles, trucks and buses, semitrailers, and trailers other than semitrailers (regardless of value) the motor vehicle fee will be calculated by multiplying a "base fee" by a percentage factor that decreases as the age of the motor vehicle increases. The percentage factors are: 100 percent for vehicles one through five years old; 70 percent for vehicles six through ten years old; and 35 percent for all motor vehicles eleven years old and older. Thus all motor vehicles, regardless of their age, will be subject to a motor vehicle fee.

LB 271 contains a number of other provisions as well, such as a requirement that the budget statements of political subdivisions include estimated motor vehicle tax revenue. For FY1997-98 only, "the estimated receipts for motor vehicle taxes may not be less than 70 percent of the receipts from motor vehicle taxes in the prior fiscal year." In addition, beginning January 1, 1998, the Nebraska Property Tax Administrator's duties involving motor vehicle taxation will be transferred to the Nebraska Department of Motor Vehicles along with related personnel.

LB 271 passed 34-11 and was approved by the Governor on June 10,1997.