Last tax increase from ’09 session to go into effect

CARSON CITY -- The last of the $1 billion in tax increases approved by the 2009 Legislature goes into effect Tuesday.

When motorists register or renew the registration of their vehicles in September, they will notice an increase in the cost of registration taxes, formally called government services taxes. The increase raises $94 million over two years.

For the owner of a $20,000 vehicle purchased five years ago, the new tax would be $154, not the current $126.

Under state law, motorists pay the government service taxes based on the current value of their vehicles. Those values are depreciated each year for nine years.

Beginning with the 10th year all cars will be assessed the same minimum tax -- $16 compared with the current $6.

The change approved by Legislature reduces depreciation allowances.

For example, a 1-year-old vehicle will be taxed based on 95 percent of its original value, instead of at 85 percent. The tax rate is 0.04 percent.

The value then depreciates by 10 percent each year through the nine years.

The Department of Motor Vehicles also announced Thursday that it will begin sending out post cards, not letters, to tell motorists that their vehicle registrations are due. That change is expected to save $371,000 a year.

Registrations also can be renewed online at www.dmvnv.com or at emission stations. One in five motorists now renews by mail.

The four other taxes increased by the Legislature, those on payroll, sales taxes, business licenses and room rentals, went into effect July 1.

All the new taxes except the room tax will expire June 30, 2011, unless reauthorized by the Legislature in 2011.

Gov. Jim Gibbons vetoed all the tax increases, except the room rental tax, but his vetoes were overridden by the Legislature. He allowed the room tax increase to go into effect without his signature.

Contact reporter Ed Vogel at evogel @reviewjournal.com or 775-687-3901.